UAE banks face funding shortages

UAE banks, whose second-quarter profits were hit by credit provisions, may see growth curbed by difficult funding conditions but their overall profitability is attractive, Goldman Sachs said on Monday.

The bank earlier revised its ratings and stock price targets on five UAE banks.

Goldman Sachs cut First Gulf Bank to neutral, while raising Dubai Islamic Bank and Abu Dhabi Commercial Bank to neutral. It also downgraded National Bank of Abu Dhabi to sell from neutral.