The abrupt and unexpected collapse of Silicon Valley Bank (SVB) and Signature Bank in the US has sent shockwaves through global markets. However, its impact on the UAE is minimal, experts have said.
“Most businessmen in the region viewed it as lucrative business opportunity … Bankers are perceiving SVB’s collapse as an opportunity to bail out cash-strapped startups and tech entities. That being said, the immediate ripple effect of the news was felt in the UAE, too, as shares of banks traded lower,” said Vijay Valecha, chief investment officer at Century Financial.
SVB Financial Group became the largest bank to fail since the 2008 financial crisis on Friday, roiling markets around the world.
Valecha stressed that the UAE has developed several policies and initiatives to actively support the startup ecosystem within the country.
“The government has made funding and financial support accessible through (various) programmes … Most importantly, the government has created a…
