Dec. 16--SAUDI ARABIA CUTS INTEREST RATES: Saudi Arabia has cut two key interest rates by half a percentage point to help boost bank liquidity, state-run Saudi Press Agency said on its website today. The Saudi Central Bank reduced its benchmark repurchase rate to 2.5 percent from 3 percent and lowered the reverse repurchase rate to 1.5 percent from 2 percent. The US Federal Reserve's monetary policy decision scheduled for later today.

DUBAI ARRESTS GANG FOR CREDIT FRAUD: Dubai police said on Monday they have arrested three members of a gang who allegedly swindled $62m after stealing credit card information from thousands of UAE bank customers. An extradition warrant has been sought for a fourth gang member. Police say the gang members obtained sensitive information from 16,975 bank cards by using a false website they created.

MOODY'S DOWNGRADES FOUR UAE BANKS: Moody's Investors Service has revised downwards the outlooks on the ratings of four banks based in the UAE. The rating outlooks for Abu Dhabi Commercial Bank, First Gulf Bank, and Dubai Islamic Bank have been changed to 'negative' from 'stable', while the rating outlook on Dubai Bank has been changed to 'stable' from 'positive'. Concurrently, the outlooks on the ratings for all senior unsecured debt issued by the above-named banks have also been revised accordingly. John Tofarides, Analyst in Moody's Financial Institutions Group, said the rating action reflects the mounting liquidity pressures in the short to medium term, the growing downward pressures on asset prices (mainly stocks and properties), and the anticipated profitability pressures from rising funding costs derived from

UAE FACES NO LIQUIDITY CRISIS, AL SUWAIDI SAYS: The UAE has adequate resources to pump liquidity to the local banking system, Sultan Nasser Al Suwaidi, the UAE Central Bank Governor said on Monday. The government has issued treasury bonds to cover the amount of the stimulus package given to the local banks recently, he stated. Credit growth in the UAE will be no more than 10 percent in 2009, he added.

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