ABU DHABI: Gulf Arab banks have more exposure to two struggling Saudi family groups than previously thought, two central bankers said yesterday, the latest setback for lenders recovering from a regional liquidity crunch.
Oman’s central bank chief raised the specter of Gulf banks having to take provisions on Saad Group and Ahmad Hamad Al-Gosaibi & Brothers Co. (AHAB), saying the sultanate’s largest lender, Bank Muscat, was probably less exposed than other regional counterparts.
“It (Bank Muscat) could be one of the least exposed banks in the region,” Central Bank of Oman Executive President Hamood Sangour Al-Zadjali told reporters in Abu Dhabi. “Maybe there are many banks in the Gulf countries and Saudi Arabia in particular that have great exposure.”
UAE Central Bank Gov. Sultan Nasser Al-Suweidi echoed those comments, saying banks in the world’s third-largest oil exporter had exposure, which was a cause for concern.
“Yes, we are dealing with it and we are concerned about it, and it will be published,” Al-Suweidi said when asked about exposure of UAE lenders.