Bank Dhofar has $10m in exposure to Algosaibi

Oman's Bank Dhofar said yesterday it had about four million Omani rials (Dh38.1m, $10.3m) in exposure to troubled Saudi conglomerate Ahmad Hamad Algosaibi Group and Brothers.

"Bank Dhofar has lent about four million rials to Algosaibi," said a Dhofar spokesman. Both Algosaibi and Saad Group have said they are restructuring their debt, which totals about $10 billion, said unconfirmed reports.

In the past week, a number of Gulf Arab banks have announced varied levels of exposure to the troubled businesses.

Another Omani bank, Ahli Bank, which provides long-term loans for property construction and home purchases, said it has no exposure to Saudi groups, which have defaulted on their obligations. "We would like to confirm that Ahli Bank has no financial relationship or exposure to Saad Group and Algosaibi Group," the bank said in a statement to the Muscat bourse yesterday.

Bank Muscat, Oman's biggest bank, said on June 11 Saad and Algosaibi owed the lender and its unit in Bahrain a combined RO66m.

National Bank of Oman, the country's second-biggest bank by assets, said it has an exposure of RO6.5m to The International Banking Corporation and Awal Bank, both of which are part of Saad and Algosaibi.

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