CSFBdirect-eUnion to close Dubai operation

Exactly three weeks after ITP.net broke news of IslamiQ’s woes and scaling down of its operations, Ali Zahed, President of CSFBdirect-eUnion told ITP.net that his operation in Dubai would be closing officially 28 June 2002.

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By  Massoud Derhally Published  May 19, 2002

Exactly three weeks after ITP.net broke news of IslamiQ’s woes and scaling down of its operations, Ali Zahed, President of CSFBdirect-eUnion told ITP.net that his operation in Dubai would be closing officially 28 June 2002.

Zahed pointed out that the company has already exited the online retail business in the United States, United Kingdom, and Hong Kong and was reviewing appropriate measures to close its operations in Japan. “Credit Suisse First Boston decided to focus on its core business which is investment banking and exit its online retail business world-wide,” Zahed told ITP.net

In a statement the company said, “Following a review of its global corporate strategy, Credit Suisse First Boston has decided to exit certain retail online brokerage businesses. As such, CSFBdirect-eUnion, the Dubai based entity established to service Middle Eastern customers, will cease operations.”

Clients have the option of liquidating their assets or transferring them to another brokerage firm. However, if transfer instructions are not received by June 28th then client money market positions will be liquidated, margin balances will be covered and a check and/or securities will be mailed to clients.

At the close of the business day on May 31st client will no longer be able to place opening transactions, as only liquidating transactions will be taken after this date.

While clients will no longer be able to execute any transactions in their account as of the close of the business day on June 14th, they will be able to access the CSFBdirect-eUnion website until June 28th.

When asked if he would have done anything different, Zahed said, “I would have partnered with a partner who is committed to the online business.”

Zahed declined to specify how much of an investment was being written off by CSFB's decision to exit the online retail business.

Closure of the Dubai offices will result in the lay off 12 people.

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