Funds may be pulled from Doha banks

Funds may be pulled from Doha banks

Dubai - Saudi Arabia, the UAE and Bahrain may withdraw as much as $35 billion from the banking sector



By Team KT

Published: Tue 4 Jul 2017, 11:11 PM

Last updated: Wed 5 Jul 2017, 12:21 PM

Business circles in the Gulf region anticipate Saudi, Emirati and Bahraini banks may receive official guidance to pull out deposits and interbank loans from Qatar if it fails to act on the demands of the Arab nations.
Saudi Arabia, the UAE and Bahrain may withdraw as much as $35 billion from the banking sector - this is about 20 per cent of the annual GDP of Qatar  if a decision is taken to cut off financial ties with Doha, according to a Bank of America-Merrill Lynch report.
The local banking system in Qatar is largely dependent on foreign currency with the Qatar Central Bank data showing that non-residents accounted for 24 per cent of total deposits in 18 lending institutions in the country last April. The share of non-resident deposits is just 1.2 per cent in Saudi Arabia and 12 per cent in the UAE, says a Bloomberg report.
Meanwhile, the UAE Minister of State for Foreign Affairs, Dr Anwar Gargash, tweeted: "We pray that the extension sought by the Kuwait Amir is an opportunity for a sound review and a good decision by brother Qatar. The alternative is difficult for all of us."
- reporters@khaleejtimes.com


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