UAE banks are buying up loans that Qatari banks – Doha Bank and Barwa Bank – extended to UAE companies, banking sources told Al Arabiya.
In the UAE, Doha Bank – one of the largest Qatari commercial banks – has branches in Dubai and Abu Dhabi and a representative office in Sharjah.
Barwa Bank, Sharia compliant banking service provider from Qatar, has a representative office in Dubai International Financial Centre (DIFC) from 2014.
The sources confirmed that the UAE banks are buying these loans at a discount, although these loans are estimated to amount to billions of dollars.
The Qatari banks are selling these loans out of fear of additional sanctions on Qatar, sources added.