U.S. banks have roughly $10 billion of exposure to the United Arab Emirates, with Citigroup Inc. and JPMorgan Chase & Co. accounting for the bulk of it, according to CreditSights.
Dubai World, a government-owned conglomerate spanning real estate, ports and leisure interests, is struggling to deal with its debts and almost $60 billion of liabilities. Last week it said it was seeking a debt standstill, a move that weighed heavily on investor confidence worldwide.
Most major banking companies have not broken out how much exposure they have to Dubai World. However, for the entire United Arab Emirates, Citi had about $5.9 billion of exposure and JPMorgan Chase $2.5 billion during the fourth quarter, according to the report. Bank of America Corp. was owed $664 million as of the third quarter.
"We believe the U.S. banks' exposure to the UAE is a very manageable $9.9 billion," CreditSights, an independent research firm, said in the report.
