KSA seeks central bank HQ clarification

Saudi Foreign Minister Prince Saud Al Faisal yesterday said Riyadh wanted to know why the UAE has expressed reservation over choice of Riyadh as the planned location of the GCC Central Bank (GCB).

“We want to know what are the areas of the UAE’s reservation [over the decision by the GCC] and how to remove them,” Prince Saud said in Riyadh.

The UAE was the first of the six Gulf nations to request the GCC’s banking headquarters be located here. On May 5, the consultative GCC summit in Riyadh decided the headquarters of the GCB will be located in the Saudi capital.

“I think being the first to make the request would have given the UAE right of first refusal on this issue,” said a senior private equity executive who did not wish to be named. “The UAE does not lack any facility that would come in the way of establishing the central bank here.”

“Everyone believes the UAE has taken more steps in the past five years to bring banking regulation up to international best practice. The setting up of the Dubai International Financial Centre and its regulator, Dubai Financial Services Authority, also lends a certain gravitas to the UAE’s ambitions to be a regional financial hub,” the PE executive said.

Prince Saud added yesterday: “We will continue working on this issue and hope a common vision will prevail.”

 

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