Sunday, media reports said that the Central Bank of the United Arab Emirates or UAE has offered local and international banks with debt exposure in Dubai to avail an additional liquidity facility. Further, the central bank stressed that it "stands behind" the country's local as well as international banks as they face losses from Dubai World's possible default.
On November 25, markets around the world had slipped after Dubai World, a state-owned investment company and owner of property developer Nakheel PJS said that it was seeking to delay loan repayments until at least May 30, 2010. This had raised the prospects of rising loan losses for U.A.E. and foreign banks. Dubai World had $59 billion of liabilities as of August
Reports said that Central Bank of the United Arab Emirates or UAE in an emailed statement that it had issued a notice to banks said, "making available to them a special additional liquidity facility linked to their current accounts at the central bank, at the rate of 50 basis points [or half a percentage point] above the three months Eibor," or the Emirates interbank offered rate."
Dubai stock markets, will be opening on Monday morning after a four-day holiday. Reports suggest that despite the intervention by the central bank the markets might come under selling pressure, impacted by the real estate and bank stocks.
Earlier reports had said that the UAE's central bank governor expected that commercial banks' third and fourth quarter financial results to be lower due to the provisions as well as the global crisis.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.