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Banks need to change their attitudes to lending and change it fast. Their unwillingness to lend is paralysing business in the UAE and risks prolonging the downturn, a senior business leader has warned this month.
Mishal Kanoo, deputy chairman of conglomerate The Kanoo Group, which has operations in everything from travel to machinery and oil and gas, heaped blame on international and local lenders in the country and said they did not ‘trust' the companies and individuals, to whom they lend.
"Start being the backbone of the economy, because if you don't you will crush us [business]," Kanoo said.
"If the banks don't get over this issue of trust and start to lend, businesses will not function, they will collapse, and subsequently they won't get paid and they will have to write it [debt] off. If banks don't start lending you are going to have a severe, economic downturn," he added.
He couldn't be more right. Kanoo is saying what everyone is thinking - but will the banks listen?
Anil Bhoyrul is the editorial director of ITP Executive.
