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!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Beating state debt addiction proves hard for UAE banks

Beating state debt addiction proves hard for UAE banks

Banks' exposure to the public sector as a percentage of capital...

MidEast boutiques seek to become fashionable M&A choice

MidEast boutiques seek to become fashionable M&A choice

Number of such firms in the Middle East is growing, centred on...

Saudi money market turmoil shows bank jitters over bond issues

Saudi money market turmoil shows bank jitters over bond issues

Money market moves show concern about Saudi banks' ability to...

Most Discussed