UAE rejects liquidity concerns while exploring U.S. currency swap
The UAE has moved to reassure markets that it has no liquidity problems or need for external financing, despite seeking assistance in the form of a currency swap with the U.S. amid the economic fallout from the Iran war.
U.S. President Donald Trump confirmed that a currency swap, in which the Federal Reserve would likely lend dollars to the UAE Central bank in return for dirhams, was under consideration.
“It’s been a good country. It’s been a good ally of ours. And, you know, these are unusual times,”he told CNBC on Tuesday when asked if the administration was weighing the plan, first reported by The Wall Street Journal on Sunday.
“I’m surprised, because they are really rich,” Trump said. “They’re very good for this country, so yeah, if I could help them, I would.”
Yousef Al Otaiba, the UAE’s Ambassador to the U.S. and a Minister of State, quickly clarified the UAE’s position, saying that “any suggestion that the UAE requires external financial backing misreads the facts.”
“The UAE is one of the world’s most financially resilient economies, underpinned by more than $2 trillion in sovereign investment assets,” he said, adding “we very much appreciate President Trump’s recognition of the UAE as one of America’s most important economic & trade partners.”
Shipping giants freeze container traffic amid rising Gulf threats
Container shipping giants Hapag-Lloyd and A.P. Moller-Maersk have halted bookings and begun diverting vessels away from the Middle East amid escalating security risks in the Strait of Hormuz, disrupting global trade routes.
The moves by the two European carriers – among the world’s biggest container lines – come as the threat of missile and drone attacks has forced shipping companies to reroute cargo or suspend transits through the narrow Gulf waterway, The Wall Street Journal reports.
More than 3,000 vessels have been stuck in Gulf ports or waiting outside the strait as insurers withdraw war-risk coverage and shipowners hesitate to send crews into what has effectively become a combat zone.
At the same time, oil shipping has begun to stall as dozens of supertankers either idle inside the Persian Gulf or slow their voyages while owners assess whether it is safe to attempt the passage, Bloomberg reports.
The disruption in the corridor that normally carries roughly a fifth of the world’s oil supplies has sent tanker charter rates soaring and raised fears of prolonged shocks to global supply chains.
Qatar’s Estithmar positioning to acquire two Syrian banks
Qatar’s Estithmar Holding is poised to purchase controlling stakes in two Syrian banks.
The investment group plans to take over majority ownership of Shahba Bank and about 30% of Syria International Islamic Bank, Reuters reports.
The move would be the first foreign banking acquisition in Syria since the fall of Bashar al-Assad and follows the recent lifting of U.S. sanctions on Syria.
The year-old interim government of President Ahmed al-Sharaa has been seeking to bring foreign capital into Syria’s banking system after more than a decade of conflict.
DP World ready for immediate return to Venezuelan ports
Dubai’s global port operator DP World is ready to start operations in Venezuela “within 24 hours” if the situation changes following the capture of President Nicolas Maduro by the U.S., its chairman says.
“Tomorrow if there’s a cargo opportunity in Venezuela, we will go … We can start within 24 hours if we need to. We know the place very well, the teams, everybody,” Sultan bin Sulayem, DP World Chairman and Group CEO, told The National.
The container shipping and logistics giant previously ran terminal operations at Venezuela’s Puerto Cabello until 2009, when the military took over the country’s ports and airports under former President Hugo Chavez.
Since then U.S. sanctions have made it difficult to return.
