The UAE's central bank governor has said there was no cause for concern about local banks, which he said had proven themselves able to weather the global crisis.
"Sultan Nasser al-Suweidi said .. he did not see any reason for concern because UAE banks have increased their capitals ... (and) as commercial banks have proven their ability to face the consequences of the world financial crisis," news agency WAM reported.
The Dubai government disclaimed responsibility for the debts of its Dubai World conglomerate on Monday, crushing earlier assumptions by creditors that the Gulf emirate would guarantee its liabilities.
Suweidi did not directly refer to Dubai's debt problems.
"I have an advice for foreign investors. They should study available investment opportunities and conduct realistic feasibility studies to make sure they are real opportunities with no risk," WAM quoted Suweidi as saying on Abu Dhabi TV.
Suweidi reiterated a statement by the central bank on Sunday that it would stand behind banks in the UAE and that it had set up an emergency facility to support their liquidity.
Dubai rocked the financial world on Nov. 25 when it said it would ask creditors of Dubai World, the conglomerate behind its rapid expansion, and Nakheel, builder of its palm-shaped islands, to agree to a standstill on billions of dollars of debt as a first step to restructuring. (Reuters)For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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