UAE Studies Readmission Of Foreign Banks

by Lorys Charalambous, for LawAndTax-News.com, Cyprus

18 March 2004

Speaking on Tuesday, governor of the UAE Central Bank, Sultan bin Naser Al Suweidi revealed that the jurisdiction is considering readmitting foreign banks to its lucrative market after more than 15 years.

Explaining that:

"Our decision to reopen the banking sector to foreign banks was not a result of pressure from the WTO," the Central Bank chief told Gulf News Online that two possible models for the opening up of the UAE banking sector are currently under consideration, explaining that:

"The first one is to reopen this sector on a reciprocal basis and in line with our relevant bilateral agreements with other countries. The second is to maintain the current situation for the time being and begin opening up our market to Gulf banks then Arab banks. Afterwards, we start allowing foreign banks from the countries which maintain strong economic and trade relations with the UAE."

Suweidi went on to predict that the reopening of the sector is unlikely to adversely affect the region's 21 national banks, as their operations cover many markets.

Recommended