Economics

Jefferies Says UAE Injected $8 Billion Liquidity to Help Lenders

Skycrapers along a highway in the Business Bay financial district of Dubai, United Arab Emirates, on March 4.

Photographer: Walaa Alshaer/Bloomberg

Analysts at Jefferies Financial Group Inc. estimate the United Arab Emirates’ central bank injected more than 30 billion dirhams ($8.2 billion) into the banking system to help protect against the impact of the Iran war.

Data from the Central Bank of UAE shows commercial lenders used a tool known as a Contingent Liquidity Insurance Facility, Naresh Bilandani, Jefferies’ head of equity research for Central and Eastern Europe, Middle East and Africa, wrote in a note to clients on Thursday. The CLIF was introduced in 2022.