The valuations of banks on the UAE's stock markets have fallen to their lowest level in six months, despite a recovery in bank capital and earnings.
Emirates lenders are now the cheapest bank stocks in the Middle East relative to earnings, apart from Egypt. But the deep discounts have yet to prompt a wave of buying because of weak liquidity in Abu Dhabi and Dubai.
'There is value in these public companies but in a depressed market it doesn't matter if it's gold, people won't buy it if there is no liquidity,' said Mohammed Ali Yasin, the chief investment officer at CAPM Investment in Abu Dhabi.
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