Saudi, UAE see little Brexit impact on their banks

Dubai, United Arab Emirates: Financial authorities in Saudi Arabia and the United Arab Emirates on Saturday downplayed the impact of Britain’s vote to leave the European Union on their banks.

Authorities in both countries, whose currencies are pegged to the US dollar, said they were keeping an eye on the impact of the Brexit vote, but that their banks’ exposure is limited.

“Due to the limited connection between the UAE financial system and that of the UK, the channels through which financial institutions in the UAE could be affected by the state of uncertainty over relations between the UK and the EU are limited,” said the UAE’s central bank.

In a statement carried by the UAE’s official WAM news agency, the central bank said it will “continue to watch developments… mainly those that could affect the UAE economy.”