Gulf's Banking Sector Shaken by IT Disruption Amid Rising Tensions

Abu Dhabi Commercial Bank faced IT disruptions affecting mobile banking and call centers, potentially linked to broader regional issues stemming from Iran's strikes on U.S. bases. The incident has significantly impacted business operations and financial markets in the Gulf, marking the worst disruption since the COVID-19 pandemic.

Abu Dhabi Commercial Bank announced a temporary outage of its mobile banking and contact center services due to an IT disruption affecting the region on Monday. While the bank has not specified the cause, it coincides with reports of issues at Amazon Web Services' data centers in Bahrain and the UAE following Iranian military strikes.

As the UAE's third-largest lender, ADCB is primarily owned by the Abu Dhabi government through the Mubadala Investment Company, holding a 60.69% stake. Trading of ADCB shares was halted on Monday after the UAE Capital Markets Authority suspended operations on the Abu Dhabi Securities Exchange and Dubai Financial Market, in response to the Iranian missile and drone attacks on the country.

The strikes on U.S. bases have led to the most significant business disruptions in the Gulf since the COVID-19 pandemic. The attacks have forced airport closures, stalled port operations, and caused tremors in the financial markets, impacting every major state in the region, which is known for its stable business environment.

(With inputs from agencies.)