DUBAI, June 11 Shares in Qatari banks fell in
early trade on Sunday after the central bank of the United Arab
Emirates ordered UAE banks to be wary of any accounts they hold
with six Doha-based banks.
In Dubai, the largest listed property developer, Emaar
Properties, rose 0.9 percent as investors continued to
react positively to its plan to distribute funds from a listing
of its local real estate developer to shareholders.
The UAE, as part of its response to the diplomatic rift in
the region, told local banks to apply “enhanced due diligence”
to the Qatari institutions and instructed banks to stop dealing
with 59 individuals and 12 entities with alleged links to Qatar.
Five of the six Doha-based banks named are listed on the
stock market: Qatar National Bank, Qatar Islamic Bank
, Qatar International Islamic Bank, Masraf Al
Rayan and Doha Bank. Shares in all of them
fell on Sunday with the largest, QNB, down 1.0 percent.
Qatari banks have about 60 billion riyals ($16.5 billion) in
funding in the form of customer and interbank deposits from
other Gulf states, SICO Bahrain estimated, and the banks account
for just over half the Qatari stock market’s value.
Although the UAE stopped short of a blanket ban on dealings
with Qatar, its move could have much the same effect if UAE
banks – and perhaps those in other countries – reduce their
exposure to Qatari institutions for fear of getting caught in
the diplomatic crisis.
Shares in Barwa Real Estate were down 4.9 percent
and the Qatari stock index fell 1.3 percent on Sunday
morning. Last week, the Doha index shed 7.1 percent.
In Abu Dhabi, the banking sector helped carry the index
0.5 percent higher. First Abu Dhabi Bank – the
second largest bank in the region by assets after QNB – was 0.9
The Dubai index was almost flat, however, as nine
shares rose along with Emaar but 15 declined.
The Riyadh index was flat, weighed down by the
petrochemical sector as Brent oil stayed near a one-
month low. Propylene maker Yanbu National Petrochemicals
was down 0.4 percent.
(Reporting by Celine Aswad; editing by Andrew Torchia and David