NIB chief says UAE banks 'could need another $6.8bn'

MORE MONEY: Noor Islamic Bank's CEO says the UAE banking system needs continued capital injection.

MORE MONEY: Noor Islamic Bank's CEO says the UAE banking system needs continued capital injection.

The chief executive of Dubai-based Noor Islamic Bank has said the banking system could need as much as AED25bn ($6.8bn) on top of AED120bn already spent on shoring up bank finances since 2008.

“The banking sector in the UAE needs continued capital injection,” Hussein al Qemzi told UAE daily The National. “I can say we need another AED20bn to AED25bn.”

According to the newspaper, the International Monetary Fund (IMF) last week estimated that growth in the UAE would be close to zero this year. The IMF had previously projected a 2.4 percent expansion in 2010.

Last year banks set aside an extra AED13bn to cover bad loans, bringing total provisions to AED32.6bn, the newspaper said.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Are the troubles easing for Saudi construction giant Binladin?

Are the troubles easing for Saudi construction giant Binladin?

Gulf kingdom's biggest builder appears to have pulled back from...

Statistics fog raises risk as cheap oil hits Gulf

Statistics fog raises risk as cheap oil hits Gulf

Sharp revision of economic data in Saudi Arabia suggests its...

Why banking in the Gulf will never be the same again

Why banking in the Gulf will never be the same again

New technologies are emerging in banking and finance at a rapid...

Most Popular
Most Discussed
sponsoredTracking