A sum of more than $3 billion is owed to UAE banks by troubled Saudi Arabian groups Saad and Al-Gosaibi and their banking outfits. This has led to some analysts to question as to whether the banks did enough deliberation on the total size of debt they had become exposed to.

One banking analyst said: "I think many banks may not have bothered to verify their aggregate exposure built up to these groups." Finances have been raised by the two Saudi groups via eight syndications in the last four years alone.

Though there is no information regarding the total exposure of the estimated 150 financial institutions involved; however, the level of participation of some of the region's largest banks is beginning to be revealed.

A well known newspaper of UAE reported, "Abu Dhabi Commercial Bank (ADCB) has participated to the extent of $395 million in Saad, while its participation for Al-Gosaibi Group syndication was $40 million. Mashreq has participated by $160 million and $50 million, respectively."

It continued that Emirates NBD has proved to be one of the least affected, with its exposure being confined to a $100 million facility for Saad Group.

While National Bank of Abu Dhabi, the largest Abu Dhabi-based bank, has advanced only $7 million to the Saad Group through a syndicated facility, First Gulf Bank (FGB) is exposed to a tune of $25 million to Saad and $30 million to Al-Gosaibi.

According to UAE Central Bank Governor, Sultan bin Nasser al-Suweidi, UAE banks have enormous exposure to Saad and Al-Gosaibi.

He concluded, without detailing how much UAE banks were owed, "It's a big issue everywhere. All GCC countries are exposed. (The UAE banks' exposure) is significant."