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.

United Arab Bank
United Arab Bank

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.

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Author

Ahmed Naser is a UK-based journalist with a deep understanding of the Middle East. Ahmed is a contributor to a wide range of regional publications in the Middle East. He works across print and digital media as a freelance editor and writer.

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