UAE banks: $2.9b exposure to Saad, Algosaibi

The UAE Central Bank said yesterday that banks operating in the country have a combined exposure of $2.9 billion (Dh10.7 billion) to Saudi Arabia's troubled business groups — Saad and Algosaibi — and ordered the banks exposed to take specific provisions for bad loans.

"The number of lending banks to the two groups and their related banks is 20 banks, 13 national banks and 7 foreign bank branches operating in the UAE. Their funded and unfunded exposures amount to $2.9 billion," the bank said in a statement.

The Central Bank said provisions should be made by the banks as follows: exposures to Algosaibi group, funded and unfunded, at 50 per cent, exposures to Saad group, funded and unfunded, at 50 per cent, exposures to The International Banking Corporation (TIBC), funded and unfunded, at 100 per cent and exposures to Awal Bank, funded and unfunded, at 100 per cent.