DUBAI: Some Saudi Arabian and United Arab Emirates commercial banks are holding off on doing business with Qatari banks, such as letters of credit, because of the diplomatic rift in the region, banking sources told Reuters on Tuesday.
They said the banks, which declined to be named, were delaying deals until they received guidance from their central banks on how to handle business with Qatar.
They also said the UAE central bank had asked banks in the country to detail their exposure to Qatari banks, and that the Bahrain central bank had taken a similar step, setting a Thursday deadline to obtain the information.
The UAE central bank did not respond to a request for comment and Bahraini central bank officials could not immediately be contacted for comment.
Saudi Arabia, Egypt, the United Arab Emirates and Bahrain severed air, sea and land transport links with Doha on Monday, accusing it of supporting terrorism.
Saudi, UAE banks hold off on Qatar deals; central banks investigate exposure
Saudi, UAE banks hold off on Qatar deals; central banks investigate exposure
QIA, Franklin Templeton launch $200m Qatar equity fund
RIYADH: Qatar’s sovereign wealth fund has teamed up with Franklin Templeton to launch a $200 million equity fund focused on the local stock market, part of efforts to deepen liquidity and attract institutional investors to Qatar’s capital markets.
The Qatar Investment Authority and the US asset manager said the Franklin Templeton Qatar Equity Fund will operate as a day-traded mutual fund investing in companies listed on the Qatar Stock Exchange, according to the Qatar News Agency.
The launch follows a series of recent global partnerships by QIA, including a preliminary deal with Goldman Sachs targeting up to $25 billion in investments, as Qatar pushes to diversify its economy and expand its financial sector.
Mohammed Saif Al-Sowaidi, CEO of QIA, said: “With the launch of Franklin Templeton Qatar Equity Fund, QIA is further expanding our Active Asset Management Initiative to support Qatar’s financial markets.”
He added: “As one of the largest global asset managers, Franklin Templeton brings a wealth of experience and resources to QSE and the broader Qatari economy and we look forward to working closely together on this initiative.”
The fund aims to give investors exposure to Qatar Stock Exchange-listed equities, allowing local and international institutions to access an actively managed portfolio in the domestic market, QNA reported.
QIA is the fund’s lead investor, contributing cash and shares, underscoring its commitment to the Qatari stock market. The reallocation of QSE-listed shares is intended to support the domestic economy and enhance market liquidity, it added.
Franklin Templeton manages about $1.68 trillion in assets as of Dec. 31, 2025, making it one of the world’s largest investment firms.
“Through our partnership with QIA, we aim to contribute meaningfully to the continued development of the Qatari financial ecosystem. We see this collaboration as the beginning of a long-term strategic partnership and part of a broader, multi-asset collaboration between Franklin Templeton and QIA,” said Jenny Johnson, CEO of Franklin Templeton.
The Franklin Templeton Qatar Equity Fund represents a key step in QIA’s active asset management strategy and highlights its partnership with Franklin Templeton in supporting Qatar’s capital markets through global investment expertise.
