UK banks likely to avoid big Dubai loss

HSBC's impairment charges for the Middle East surged to $1.3 billion from $279 million, mainly on UAE real estate and construction losses. Credit cards and personal loans went unpaid and there were "large numbers of expatriate workers departing the region leaving debts unpaid," it said.

It has $13.9 billion of loans to the UAE and said its exposure to and within the region was acceptably spread.

Standard Chartered's UAE loan portfolio was $10 billion, including about $500 million to troubled firms, but it said it did not expect any material losses from the exposure.

HSBC, Standard Chartered, RBS and Lloyds are on a creditors' committee discussing a deal with Dubai World officials.