Gulf banks begin to reveal exposure to Dubai World

07 December 2009

Total disclosures currently amount to $718m

Banks in the Gulf have started revealing the level of exposures they have to Dubai World and its subsidiaries Nakheel and Limitless in the wake of the state-owned company revealing it plans to restructure $26bn worth of debt.

So far, banks have revealed a total exposure of $718m, with many of the region’s largest banks yet to reveal the total size of loans they have made to the group.

The governor of the Central Bank of Bahrain, Rasheed al-Maraj, has said the total exposure to the firms in Bahraini banks was about $281m.

In Oman, three banks revealed total exposure of RO29.55m ($77m), including Bank Muscat which has exposure of RO19.25, National Bank of Oman with RO8.7m, and Bank Sohar revealed exposure of RO1.6m. Bank Dhofar said it has no exposure to the companies.

Qatar National Bank, the country’s largest bank, said it has no exposure to Dubai World or Nakheel. Qatar Islamic Bank revealed it made loans of $15m to Dubai World.

National Bank of Abu Dhabi said it has $345m of exposure to Dubai World, making it the only UAE bank to have made an official announcement of its total loans to the group.

Mohammed al-Jasser, governor of the Saudi Arabian Monetary Agency (Sama), said on 5 December that exposure to Dubai World in Saudi banks was “very limited”.

A MEED Subscription...

Subscribe or upgrade your current package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications