UAE Central Bank Asks Lenders About Exposure To Turkey
The United Arab Emirates central bank has asked local commercial banks in the country to provide details of their financial exposure to Turkey by Tuesday. The aim is reportedly to review the investments. The UAE’s financial ties to Turkey have expanded in recent years because Gulf banks are looking to diversify out of the region’s oil-focused economy and are hamstrung by a lack of potential acquisitions at home. UAE banks have also increased their exposure to Turkish debt, particularly sukuk. Sales of Turkish sukuk to Gulf investors may increase further as Turkey expands its offerings. A new regulation limiting exposure to Turkey is not expected despite the UAE’s central bank’s action unless the data compiled exceeded the norm.