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

  • Share via facebook
  • Tweet this
  • Bookmark and Share
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!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Capital plans: how Qatar's banks are shaping up

Capital plans: how Qatar's banks are shaping up

Ahli Bank chief executive Salah Murad says that despite competition...

The spectacular rise and fall of Arabtec

The spectacular rise and fall of Arabtec

The ups and downs of Dubai most heavily traded stock teaches...

1
MidEast investors eye $180bn overseas spending

MidEast investors eye $180bn overseas spending

Arab institutional investors have been buying up swathes of ...

Most Discussed