UAE federal finance chief speaks to Euromoney
Younis Al Khouri, director-general of the UAE federal finance ministry, speaks about his department’s cash injections into the banking sector, and his plans for the first UAE-wide sovereign bond.
In October 2008, the council of ministers issued a resolution to guarantee 100% of deposits in the UAE banking system, for a period of three years. That guarantee will expire in October this year and was a clear sign at that time that the country was making every effort to maintain its position of having a strong financial hub for the region, be an open market and add stability to the banking sector. Later that year, a ministerial committee chaired by the minister of state for finance was formed to review the financial position of all local banks. The committee also assessed the banking industry circumstances at that time and injected Dh25 billion ($6.8 billion) into the banks. That was followed by another Dh25 billion injection, taking the total to Dh50 billion, in order to stabilize the sector as a whole and to strengthen the position of the banks.