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

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.