As the dust from the global economic storm beings to settle in the UAE, banks are hesitantly wading into 2009. This year, the operating environment for banks is undoubtedly challenging. Experts say that since the estimated — but not official — $55 billion exit of foreign currency last year, a major liquidity hole has been created in the banking sector. When the global financial crisis shook the core of the UAE economy, what was once scarce liquidity had become almost non-existent. Thanks to the affluent sovereign that is the UAE federal government, the banking sector has been provided with liquidity assistance via cash injections totaling $13.6 billion. At present, the central bank claims Emirati banks have only absorbed two-thirds of this liquidity fix, with a third shot expected to take place sometime in the first quarter of this year. While bankers, analysts and financial houses scream in unison for liquidity
