An Abu Dhabi court has ordered banks in the UAE to freeze the assets of troubled Saudi conglomerate Saad and its partners over bad debts, the Emirate News Agency Wam reported. Giving its decision on a writ filed by a leading national bank in the UAE, the Summary Proceedings Court in Abu Dhabi issued the ruling on Thursday affecting the assets of Saad Trading, Contracting and Financial Services and Saad Holding, as well as their partners. The court also ordered the provisional seizure of any movable properties in any emirate as well as the major amount of shares they own in a number of companies listed in the stock markets in the UAE. The attachment order on deposits with the banks operating in the UAE has been enforced with immediate effect through the UAE Central Bank, which in turn will send circulars to the banks for the attachment of deposits within the limit of $151 million. A precautionary attachment order is a legal term used to place goods, or assets, under the protection of the court in order to safeguard any subsequent judgment. UAE banks have set aside billions of dirhams to cover an increase in loan defaults.
