The UAE government has said it will guarantee savings and deposits made in local banks, and all interbank lending in the country, as part of its measures to shore up its banking system in the wake of the global financial crisis.
UAE prime minister Sheikh Mohammed bin Rashid al Maktoum approved the measures at a meeting of the government on 12 October. He also agreed to further capital injections into the banking system if necessary.
In late September the Central Bank of the UAE launched a AED50bn liquidity fund to help stimulate the local interbank lending market, which had dried up as banks became nervous about lending to each other.
However, the measures failed to improve sentiment and the Dubai Financial Market fell 5.41 per cent on 12 October, to the lowest it has been for 43 months.
The Tadawul stock market in Saudi Arabia fell to a four year low.
You might also like...
Rainmaking in the world economy
19 April 2024
Oman receives Madha industrial city tender prices
19 April 2024
Neom seeks to raise funds in $1.3bn sukuk sale
19 April 2024
Saudi firm advances Neutral Zone real estate plans
19 April 2024
A MEED Subscription...
Subscribe or upgrade your current MEED.com 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.
