There is no shortage of liquidity in the UAE market, but the banks are “hoarding” their deposits by not injecting the cash back into the economy, according to Mohammed Qasim Al Ali, CEO of National Bonds Corporation.
“I am not a believer that there is a shortage of liquidity in the market. The banks are full of cash, but they are not injecting this cash back into the economy because they are shrunk in terms of financing, and lending it to people or to companies,” the CEO of the leading Shariah-compliant saving scheme in the UAE, told Khalej Times.
He was being interviewed after National Bonds Corporation announced a profit of 3.78 per cent for its bondholders “despite a challenging year in 2010.” Qasim said that statistics from the Central Bank of UAE indicate that deposits in general in the UAE have increased. It means that cash is there.
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