Several UAE-based banks have been asked by the UAE government to refrain from doing business with Qatari backed companies. As a result, several Qatar-backed banks have seen their balance sheet shrink.
Since June 2017, UAE, Saudi Arabia, Bahrain and Egypt have been imposing a blockade on Qatar, accusing it of supporting terrorism, which Qatar has always denied. The quartet of countries have enforced a land, see and air blockade on Qatar and prevented Qatari citizens from traveling to UAE.
Banks such as United Arab Bank (UAB) which is owned mainly by Qatari banks, as well as Al Khalifji France and Commercial Bank International (CIB) have witnessed a drop in their balance sheet as a result of UAE companies withdrawing their business exposure to to companies with Qatari ownership. Meanwhile, Qatar-based Doha Bank has been reducing its exposure to UAE banks.