UAE To Stand Firm On Foreign Banks

by Lorys Charalambous, Tax-News.com, Cyprus

10 July 2002

Speaking to the Gulf News service this week, the UAE's Director of WTO Affairs at the Ministry of Economy and Commerce, Saeed Al Nusabi explained that the jurisdiction will be sticking to its guns over allowing more foreign banks to establish in the region, arguing that the United Arab Emirates is already an 'overbanked' country.

Mr Nusabi told Gulf News that within the context of World Trade Organisation negotiations, the jurisdiction has been granted exemptions in certain areas (such as allowing more foreign banks into the region), but that key WTO members are now demanding their removal.

He told the news service that he would be standing firm at the next round of WTO talks, which begin later this month.

'We will make this clear at the July 18-19 negotiations, which we expect to drag on until 2005. Our stand is that we need an exemption in this sector for the time being because the banking sector in the UAE is already too large and there is no need for new banks,' the WTO negotiator explained, adding that:

'As for the liberalisation of the banking services, we already have one of the most liberal systems...but as I said, the UAE cannot afford having any more foreign banks now.'

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