Dubai Islamic Bank says no Saudi exposure
(Reuters) / 23 June 2009
DUBAI - Dubai Islamic Bank has no exposure to two troubled Saudi conglomerates, a spokesman said on Monday.
“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 .
Government-controlled 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 writedowns in the coming quarter. Problems at the Saudi groups could result in some of the biggest defaults to hit the region since the onset of the financial crisis.
Dubai Islamic shares were up 1.15 percent at 0834 GMT as the general Dubai index was near flat.
Established in 1975, Dubai Islamic Bank is one of the largest players in the fast-growing Islamic banking sector. Unlisted Dubai Bank is active in the same field of shariah-compliant banking and was launched in 2002.