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19 February 2025

Mashreq files $398m claim against Algosaibi

The Mashreq Bank at Al Muntasir road in Ras Al Khaimah, March 23, 2009. (MOHAMMED HANIF)

Published
By Reuters
Dubai-based Mashreqbank has filed a court case in the UAE against Saudi group Ahmad Hamad Algosaibi & Bros (AHAB) to claim $398 million owed by the group, it said late on Sunday.

"Mashreq confirms legal proceedings are underway in the United Arab Emirates for the claimed amount of Dh1.46 billion ($397.6 million) owed to it by AHAB," it said in an emailed statement.

It said this amount included the $225 million it seeks to recover from AHAB in a law suit filed in New York.

"In both jurisdictions, Mashreq is seeking the return of the funds owed to it by AHAB," it said. The Algosaibi family conglomerate has in turn filed a law suit in New York against Mashreqbank and Maan al-Sanea, head of Saudi Arabia's Saad Group, seeking combined damages of more than $2 billion.

Algosaibi and Saad are battling over billions in debt they owe to a large group of regional and international banks.

Thirteen banks in the UAE have exposures to the troubled groups. In the statement, Mashreq reiterated the debt owed to it by AHAB was in excess of $400 million.

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