Citibank will lose most of its United Arab Emirates (UAE) branches and financial centres through March 14th as a precaution, its website showed on Thursday, as banks in the region sent staff home due to the escalating conflict in West Asia.
The U.S.-Israeli conflict with Iran has led to 2,000 deaths and has thrown global energy markets and transport into chaos. The conflict has spread across West Asia, with Iran targeting Israel, U.S. bases and Gulf states.
The U.S. financial group’s measures are the latest sign of growing concern among banks after Iran threatened Gulf banking interests tied to the U.S. and Israel.
Citi Moves To Fully Remote Model
The Citi branch in the Mall of the Emirates in central Dubai is exempted from the closure, the bank stated on its website, adding that it plans to reopen all affected branches on March 16.
Citi had moved to a fully remote model for all UAE-based staff and has continued to serve clients without interruption, according to a spokesperson from the bank.
Citibank told its staff to evacuate offices from the Dubai International Financial Centre and Dubai’s Oud Metha district this week and to work from home until offices reopen.
On its website, Citibank said that its phone banking service in the UAE was currently operating at limited capacity and the processing of cheques could experience delays.
“The decision to evacuate three of our buildings and to close branches in the UAE was responsive to information we received and is consistent with our commitment to prioritise the safety of our colleagues,” the spokesperson said.
HSBC, another major global bank, has followed a similar plan and closed all branches in Qatar until further notice, according to a customer notice, to ensure the safety of staff and customers.
The war has dented Dubai’s sales pitch to international financial businesses as the region’s most reliable financial hub, prompting concerns about capital flight, layoffs, and firms relocating elsewhere, Reuters reported last week.
(With inputs from Reuters)
