DIB says no Saudi exposure

Dubai Islamic Bank has no exposure to two troubled Saudi conglomerates, a spokesman said yesterday.

"Dubai Islamic Bank has confirmed that it has no exposure to either party," a spokesman for the bank said when asked about its business with Saad Group and Ahmad Hamad Al Gosaibi Group Brothers.

Dubai Bank, also a large competitor in Islamic finance in the Gulf, declined to comment.

Dubai-based Mashreq, one the UAE's largest banks by market value, recently said it has taken legal action to protect its interests because of problems with Saudi clients, but that amounts involved were "not significant".

Still, analysts expect that some Gulf banks' exposure to the two Saudi groups could result in a new round of write-downs in the coming quarter. Problems at the Saudi groups could result in some of the biggest defaults in the region since the onset of the financial crisis.


Bahrain restricts groups' units

Bahrain has placed restrictions on Bahrain-based banking units of two troubled Saudi firms, but has not frozen their assets, the kingdom's central bank governor said.

Awal Bank, which is controlled by Saad Group, and The International Banking Corporation, a unit of Ahmad Hamad Al Gosaibi Group & Brothers, are prohibited from transferring funds without prior approval from the central bank.

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