Wednesday saw the UAE central bank governor specifying that there would be full disclosure on local banks' exposure to two troubled Saudi groups - Saad Group and Al -Gosaibi. He also said that lender would be required to reflect any exposure in their year-end results.

Sultan bin Nasser al-Suwaidi, on the sidelines of a meeting with U. S. Treasury Secretary Tim Geithner, said: "We will announce the percentage of total banks' (exposure to Saad Group and Al-Gosaibi) and then the amount, so there will be total disclosure. The market wants to know."

He further continued: "It's an exposure UAE banks can and have provided for."

When he was asked as to how UAE banks will write down exposure to the two Saudi conglomerates, he explained that they would be required to reflect this in their year- end results.

It should be noted though that Suwaidi specified that no help would be provided by the UAE central bank to banks with exposure. He said: "I don't think the exposure is significant".

"There had been very little coordination on the issue because they consider it an inheritance problem," said Suwaidi, when he was asked about coordination with Saudi Arabia's central bank, the Saudi Arabian Monetary Agency, on the issue.