Abu Dhabi: The Summary Proceedings Court has ordered banks operating in the UAE to freeze assets held by the troubled Saudi conglomerate Saad and its partners with immediate effect.
A circular to this effect will be issued by the UAE Central Bank informing all commercial banks operating in the country.
The court ruled Thursday that the assets of Saad Trading, Contracting and Financial Services and Saad Holding as well as their partners be attached.
Their money deposited in banks operating in the UAE, assets and properties located across the UAE and a huge amount of shares they own in a number of companies listed on the local stock markets will all be frozen in favour of Abu Dhabi Commercial Bank, the court said in its ruling.
It said the defendants had previously signed loan and credit agreements worth $151 million (Dh554 million) with ADCB, but defaulted on repayment.
A number of lenders filed claims in various courts for loan recovery, which included pleas to freeze assets of one of the subsidiary companies of the Saad Group.
UAE Central Bank Governor Sultan Bin Nasser Al Suwaidi said in September, 13 banks were exposed to the Saad Group and Ahmad Hamad Al Gosaibi and Brothers Co (AHAB), as well as their respective Bahrain-based units Awal Bank and The International Banking Corp (TIBC).
Disclosure
Among the UAE banks, Abu Dhabi Commercial Bank, the country's third largest lender by assets, said previously it held $609 million in exposure to the Saudi conglomerates, the biggest official disclosure of potential losses against the groups.
National Bank of Fujairah said its exposure to Al Gosaibi Group was $10.2 million and it also had $15.2 million outstanding with Saad's Bahrain unit, Awal Bank. The bank said it had taken provisions of $3.3 million for Al Gosaibi and $6.5 million for Awal Bank, as of August 31.
Bahrain's Central Bank in July seized Saad's Awal Bank unit and a bank owned by Al Gosaibi, The International Banking Corporation, saying they had substantial shortfalls of assets relative to liabilities.
Sharjah Islamic Bank said its exposure to Al Gosaibi Group was Dh55 million, but it had no exposure to the Saad Group.
National Bank of Abu Dhabi said it had $7.5 million in exposure to Al Gosaibi and $3.4 million in exposure to Saad.
