Rating agency Moody's is expected to cut the rating of three banks in United Arab Emirates under the series of event that have taken place following the Dubai World's crisis. HSBC Bank Middle East may also see downgrading owing to uncertainties of loan recovery.
The agency said, "Moody's believes that despite the timely settlement of obligations falling due this week, the final form of the ongoing restructuring of the remaining debt owed by Dubai World has yet to be defined."
As confirmed by Kuwait's sovereign wealth fund, after making a profit of a whopping $1.1 Billion, the stake in held in Citigroup has been sold off by the fund. The stake was acquired by Kuwait after it had provided a major bail-out to the giant banking group of America.
The stake has been sold for $4.1 Billion, as has been confirmed by the Kuwait Investment Authority.
The National Bank of Abu Dhabi would continue to lend customers in Dubai in accordance with its cautious and selective lending policy. The bank has been urged by the gulf emirate's flagship entity, Dubai World to halt lending for the time in the backdrop of its failure to commit its debt repayment obligations.
Michael Hardwick Tomalin, the Group Chief Executive of the bank, said that the bank believes in a growth driven lending policy for Dubai and its should not be compared with its policies for other markets including the US, UK or Abu Dhabi.
The combined net earnings of the 19 national lenders of UAE declined to AED15.687 billion, reporting a fall of 16.3 percent during the first nine months of the ongoing financial year. Recently, provided financial data of these banks to UAE bourses maintained that earning stood at AED18.743billion during the corresponding period last year.
The rating agency, Standard & Poor's has revised credit rating of leading banks of Dubai, based on their exposure in the Dubai World, the state-owned investment conglomerate of the city-state.
The agency has warned against further drop in rating following Dubai World's crisis that plunged stock markets and rattled financial institutions across the globe.
A Memorandum of Understanding was recently signed between Dubai Export Development Corporation, EDC and the State Bank of India, SBI, with the aim of providing a framework for the provision of financial support and services to EDC members consisting of exporters and manufacturers in the UAE.
Under this three-year agreement, a framework would be provided, which will allow EDC members to acquire value added financial services from SBI in the areas of deposits, investments, corporate credit, loans and syndications, term loans & project finance, on a selective basis.
A pair of notable awards was won recently by Dubai Bank from Ethos Consultancy. The award was given after in depth study by the firm on the service offerings at 27 leading banks in the UAE.
Dubai Bank was titled 'Best Islamic Bank' in the UAE and also 'Most Improved Bank.' The bank, which provided excellent customer service, bagged these awards mainly because of the prominent improvement in the overall ranking of Dubai Bank among all UAE-based banks.
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