ABU DHABI, Oct 9: Banking and stocks activity in the Gulf remained normal while ships continued to ply the waters despite the reports of Iraqi troop movements near the Kuwaiti border, dealers said here, reports AFP.

Unlike in Kuwait where people flooded supermarkets and huddled around television and radio sets, there was no unusual activity in the United Area Emirates (UAE) and other Gulf countries.

"What is happening between Kuwait and Iraq has had no impact on our business and dealings with other banks in the region. There was also no unusual withdrawal of money,” a UAE bank manager told AFP.

1 don't see any Justification for panic because th8 situation

now is quite different from that which occurred before the 1990 invasion.”

Although oil prices shot up by more than one dollar on Friday on the US reports of Iraqi forces heading for the Kuwaiti border, they are unlikely to climb further unless Iraqi forces enter Kuwait, according to oil analysts.

They noted Iraq's military power had been largely weakened by the US-dominated international coalition during the 1991 Gulf War and the ensuing UN disarmament programme.

"The reason while oil prices Increased yesterday is that they are generally very sensitive to any factor. The increase was quite natural." one expert said

"Iraq's actions could have sent some shock waves across the region but 1 do not think Western powers will allow it to bully the region any more.” a UAE-based Western diplomat said.

"Ironically, it is benefiting Gulf states. Imagine how much a one dollar rise in oil prices means for countries which produce nearly one fifth of the world's crude output."

Crude prices rocketed above 40 dollars Just after Iraqi troops seized Kuwait on August 2. 1990 and threatened Saudi Arabia and other Gulf oil producers.

The invasion caused a market loss of around four million barrels per day due to a halt in Iraqi and Kuwaiti crude exports. But prices quickly fell

when Saudi Arabia and other producers maximised output.

A UAE stock broker also reported businesses usual on Saturday ... "There were several transactions In the stock market today. Investors appear not bothered by the developments in Iraq." he said.

"Many of them believe Iraq is Just bluffing. They think it will not dare attack Kuwait because the emirate has defence pacts with several countries and an attack will only harden the UN stance against lifting the embargo."

Shipping sources said there was no unusual activity in Gulf waters apart from intensified coast guard patrols in the UAE to intercept vessels coming from plague-hit India.