| 19 Mar 2010 |
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Standard Chartered sees opportunities in UAE
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Friday, Mar 19, 2010
Gulf News
Abu Dhabi Standard CharteredStandard Chartered
said yesterday it remains committed to expanding its Middle East operations, including within the UAE, despite the significant rise in non-performing loans in the region in 2009.
"We do see lots of opportunities here," Peter Sands, Standard Chartered GroupStandard Chartered Group
chief executive officer told reporters in Abu Dhabi. "If you look at revenue growth in the Middle East, it was up 25 per cent in 2009. "So despite all of the challenges, we've grown and we see lots of potential here."
Last year, provisions against non-performing assets in the Middle East and South Asia (Mesa) region accounted for 55 per cent of the bank's global provisions against bad corporate loans, according to the annual report released earlier this month.
Dubai World
Total provisions in the region, including corporate and consumer banking, reached $811 billion (Dh2.9 trillion), almost 4.5 times the amount set aside in 2008, and representing 40 per cent of the bank's total provisions.
Standard CharteredStandard Chartered is one of three British banks represented in the creditor committee negotiating a settlement with Dubai WorldDubai World to restructure $26 billion of debt. Dubai WorldDubai World has said it intends to have a formal proposal ready by the end of this month.
are continuing, but declined to provide specifics. "We're confident these discussions will arrive at the right outcome, which will be pragmatic and fair to all parties," Sands said.
Standard CharteredStandard Chartered's annual report revealed exposure to UAE entities amounted to $10 billion out of the $14 billion value of its Mesa corporate loan portfolio, but assured investors it did not expect material losses.
Exposure
Of the $10 billion in UAE exposure, the lender said $500 million constituted exposure to certain high profile entities which have experienced stress.
Shayne Nelson, Standard CharteredStandard Chartered Middle East and North Africa CEO, said his bank is optimistic on the potential of UAE. "When we look at our economic outlook for 2010 for UAE, we expect our problems to lessen not worsen because the economic environment is improving both in Abu Dhabi and Dubai.
"Look at the fundamentals of the Dubai economy, take out property ... the fundamental drivers of tourism, logistics, manufacturing, free zones. They're still doing well. The underlying strength of Dubai is still there."
By Ahmed A. Namatalla
© Gulf News 2010. All rights reserved.
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