(March 3): The multibillion dollar ramp-up in loans by Asian banks to the Middle East faces growing uncertainty as Iran’s escalating conflict raises the risk of broader financial fallout. For now, most Asian banks are adopting a wait-and-see approach, though early signs suggest some are considering pausing deals with Gulf borrowers, following missile strikes by the US and Israel that killed Iran’s Supreme Leader. Abu Dhabi National Oil Co, the UAE’s biggest oil producer, has halted plans to market its first-ever yuan-denominated bond, which could have raised as much as 14 billion yuan (US$2 billion or RM7.99 billion). Separately, a Gulf financial institution had sought a multibillion-dollar loan from Chinese investors in recent weeks, but the deal appears unlikely to proceed for now, separate people familiar with the matter said. Chinese banks’ headquarters could be reluctant to approve transactions from the region at present, they said, asking not to be identified discussing private matters.

Source: The Edge Markets March 03, 2026 02:29 UTC