Abu Dhabi mulls bank, financial sector mergers
Abu Dhabi, November 7, 2008
The global credit crisis will make Abu Dhabi assess the feasibility of existing projects, the chairman of Emirates Holdings said on Friday, adding the oil-rich emirate is also considering mergers in its banking and financial services sector.
Hussain Al-Nowais, a board member of the Abu Dhabi Economic Development Council as well as of other governmental institutions in the UAE capital, said the financial crisis signalled it was time to review some of the city's positions.
'I think the credit crisis will help us reflect and make sure the projects we are proceeding with are attractive and feasible,' he told Reuters on the sidelines of a World Economic Forum meeting in Dubai.
'It helps us consolidate and reflect,' he said, adding 'The fundamentals of the economy are strong.'
Asked whether Abu Dhabi might consider consolidation in its banking and financials sector, Nowais agreed.
'There are ideas being discussed, you will be hearing this soon,' he said. Speculation has been rife, amid the credit crunch, that banks in the region will consolidate as they grapple with tight lending conditions and slower project financing.-Reuters