Global financial institutions are temporarily closing branches in the United Arab Emirates (UAE) and surrounding countries, instructing staff to work from home, after the Iranian military flagged US-Israeli economic and banking interests in the region as targets.
The threats from the Iranian military were issued after the branch of Tehran-based Sepah Bank was bombed on Wednesday (11 March).
Citibank UAE issued a statement saying its branches and financial centres will be temporarily closed from 12 March to 14 March as a precautionary measure, with the exception of its branch in Mall of the Emirates, Dubai. “We anticipate reopening all affected locations on March 16,” the statement said.
HSBC has also temporarily closed its three branches in Qatar and is telling staff to work from home.
“The safety of our colleagues and customers remain our top priority,” a spokesperson said. “We are actively following government guidelines alongside our internal plans to manage working arrangements. We are communicating safety advice with colleagues as appropriate.”
In a statement on HSBC’s website, group CEO Georges Elhedery said: “Our thoughts are with all those affected by current events. HSBC remains steadfast in our confidence in the GCC and in the long-term strength, resilience and promise of the region. Our conviction in the GCC’s fundamentals and its future is unchanged. The region has repeatedly shown its ability to endure periods of disruption, adapt with determination, and emerge stronger.
“We continue to believe that the years ahead will bring renewed stability, growth, and prosperity. HSBC has been deeply committed to the region for more than 130 years. We remain invested in its future and in the opportunities that lie ahead for its people, businesses, and economies. We are fully engaged in supporting our colleagues, customers and partners across the region.”
Meanwhile Standard Chartered has extended its working from home arrangements until further notice but is continuing to operate as normal.
A spokesperson for the bank said: “At Standard Chartered, our focus is the safety and wellbeing of our colleagues in the Middle East. With this in mind, we are maintaining normal client service under work-from-home arrangements.
“While we will continue to monitor the situation, we remain clear that the UAE and our other Middle East markets remain an important part of our global network, through which we continue to support clients navigating a complex and fast-moving environment.”
India’s ICICI Bank said it is closing all of its branches in Bahrain “as a precaution for everyone’s safety”, while the National Bank of Bahrain is closing most of its branches until further notice.
Investment firm Channel Capital said it is aware some clients have experienced the temporary loss of some banking and IT services over the past few days, while staff at many businesses in the region have been working from home. It said there continues to be a possibility of payment delays.
“Following the breakout of the war with Iran on the 28 February and its impact upon GCC countries, Channel has reached out to over 125 clients, investors, partners, friends and Channel staff across the Gulf to send our solidarity and support for their families and businesses, who have shown great resilience,” the business said in an update.
“We express our strong support for our friends and partners in the Gulf. All early indications suggest the GCC region will weather the crisis with great resilience, and we expect nothing less given its amazing journey over the years, such as during Covid or today.”
