Yesterday, a warning was passed by Abu Dhabi Securities Market, requiring listed banks to provide details regarding actions taken on their exposures to the two troubled Saudi groups.

RakBank and United Arab Bank were among a few banks, which yesterday reverted by specifying that they do not have any exposure to Saad and Algosaibi groups.

Yesterday, two letters were sent by ADX to banks. The first letter, which was dated September 29, 2009 and signed by Khalid Khalfan Al Suwaidi, head of Listed Companies Department at ADX, asked for details of exposures and provisions before trading commences today.

It was later specified by ADX that the banks are required to either furnish the details or give a date by when these details can be submitted to the exchange. As per ADX, the move was started by exchange with the aim of protecting banks and investors from grave problems these exposures could lead to.

Nearly 14 banks are listed on ADX, out of which the larger ones are National Bank of Abu Dhabi, First Gulf Bank, ADCB and Union National Bank.

Since ADX gave just a day's time to the banks to comply with the exchange circular, a few banks expressed astonishment. Already, two meetings of the banks were convened by the Central bank. These banks, reportedly, had exposure to the Saudi groups in the past three months, soon after the news floated about the unstable financial status of these groups.

A top official of an Abu Dhabi-based bank said: "It sounds a bit strange to me why ADX has made a move like this in such haste. The Central Bank has asked all these banks for details on the exposure to the Saudi groups."

Yesterday, a meeting was held by the GCC Central Bank Governors in Abu Dhabi where banks' exposures to the Saudi groups were discussed. UAE Central Bank Governor Sultan bin Nasser Al Suwaidi acknowledged, "Thirteen UAE banks have exposure to these troubled Saudi groups which together have built up a debt trap of about $15 billion (Dh55bn) owed to about 80 financial institutions in the region and elsewhere."