Banks will resume normal lending by Q2 of next year (Interview)

Liquidity is improving but the UAE and regional banks will remain reluctant to lend until a clear picture of the global economy emerges, says Abdul Kadir Hussain, CEO of Mashreq Capital, the GCC's leading investment and brokerage firm.

Hussain told Emirates Business that debt defaults in the region would continue to rise, particularly on the bank loan, syndicated loan and bilateral loan side.

"It's going to take pretty big and deep pockets to buy the $10 billion (Dh36.7bn) second tranche of the Dubai Government bonds. The main subscribers will be UAE and regional financial institutions, which are more liquid now compared with earlier this year.