UAE extends deposit guarantee to foreign banks

DUBAI, United Arab Emirates -- This small but wealthy Persian Gulf nation moved aggressively Monday to shield its booming financial industry from the global credit crisis, saying a just-announced guarantee on bank deposits also would cover international banks operating inside its borders. It was the latest in a series of moves by the region's Arab states to bolster investor confidence in their economies amid the financial crisis _ and as tumbling energy prices mean there is less oil money pouring in. Saudi Arabia joined the UAE in cutting a key interest rate by a half percentage point over the weekend, in line with similar moves by the U.S. Federal Reserve and other central banks. The UAE announced Sunday that it would stand behind checking and savings accounts in its domestic banks. Natural gas-rich Qatar said Monday that it... [read full story]