Europe troubles unlikely to impact UAE banks

The sovereign debt crisis in Europe and a potential banking crisis in both Europe and the US are unlikely to impact the financial system in the UAE and the Gulf region, Abdul Aziz Al Ghurair, Chief Executive Officer of Mashreq told reporters on Tuesday. Speaking on the sidelines of a retail banking conference in Dubai, Al Ghurair said, the regional banks especially the UAE banks are better prepared for the fallout from Europe. "This time banks are adequately liquid, balance sheets are clean from non-performing loans and exposure to the potential problematic assets is negligible," said Al Ghurair. However he said the bad news from across the world is likely to impact asset prices in the region. "Stock valuations are very cheap in the region. Many shares are trading below their book value. It may be a good time for acquisitions and consolidation," he said