CENTRAL BANK OF THE UNITED ARAB EMIRATES

Transcription

1 CENTRAL BANK OF THE UNITED ARAB EMIRATES ANNUAL REPORT 7

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5 CENTRAL BANK OF THE UNITED ARAB EMIRATES BOARD OF DIRECTORS CHAIRMAN H.E. Mohammed Eid Al-Meraikhi DEPUTY CHAIRMAN H.E. Jumaa Al-Majid GOVERNOR H.E. Sultan Bin Nasser Al-Suwaidi DEPUTY GOVERNOR H.E. Mohamed Ali Bin Zayed Al Falasi MEMBERS Ali Al-Sayed Abdulla Khalifa Bin Nasser Bin Huwaileel Jamal Bin Nasser Lootah Saeed Rashid Alyateem Almuhairy Head Office : P O Box 854, Abu Dhabi Telephone : -665 Telex : 33 MARKZI EM : 396 MARKZI : 453 MARKZI EM : 336 MARKZI / 566 MARKZI Fax : / Website : Research & Statistics Department P. O Box Sharjah - Tel: Fax: rsdcbuae@emirates.net.ae Branches : Dubai Branch: P. O. Box 448 Dubai Telephone : Telex : MARKZI EM Fax : Ras Al Khaimah Branch: P. O. Box 5 Ras Al Khaimah Telephone : Telex : 996 MARKZI EM Fax : Fujairah Branch: P. O. Box 768 Fujairah Telephone : 9-44 Telex : 8966 MARKZI EM Fax : Sharjah Branch: P. O. Box 645 Sharjah Telephone : Telex : 6878 MARKZI EM Fax : Al Ain Branch: P. O. Box 44 Al Ain Telephone : Telex : 3473 MARKZI EM Fax :

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7 CONTENTS PART I INTERNATIONAL ECONOMIC TRENDS Page 9 PART II ECONOMIC, FINANCIAL AND BANKING TRENDS IN THE UAE. General Economic Activity. Gross Domestic Product 3. Population and Labour 4. Monetary and Credit Policy 4- Dirham Exchange Rate 4- Monetary and Banking Indicators 5. The Balance of Payments 6. Financial Markets PART III CENTRAL BANK ACHIEVEMENTS. Central Bank Balance Sheet. Central Bank Financial Results 3. Currency Issue 4. Organization of the Banking and Financial Sector 4- Organization of Banking 4- Structure of the Banking System 4-3 Representative Offices 4-4 Moneychangers 4-5 Monetary and Financial Brokers 4-6 Financial Investment Companies and Banking, Financial and Investment Consultation Establishments and Companies 4-7 Finance Companies PART IV STATISTICAL SUPPLEMENT 53

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9 P A R T - I INTERNATIONAL ECONOMIC TRENDS

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11 PART - I International Economic Trends Global growth rate slowed in 7, reaching 5.%, against 5.4% in 6. Within the group of major industrial countries, the rate of growth decreased in the USA to.9%, against.9%, and to.% in Japan, against.% and to.9% in France against.%. The rate of growth also declined to.4% in Germany against.9%. Within the Euro area group of countries, the rate of growth dropped to.5% against.8%, while it rose to 3.% in Britain, against.8%. Within the group of Asian Developing countries, growth remained bouyant at 9.8%. The rate of inflation, measured by consumer prices, dropped within the group of advanced economies as a whole to.% in 7, against.3% in 6. In the USA, the inflation rate dropped to.7%, against 3.%, and in the Euro area to.%, against.%, while it rose in the group of Asian developing countries to 5.3%, against 4.% and in African countries to 6.6%, against 6.3%. In Britain inflation rate rose to.4% in 7 against.3% in 6 and in Germany to.% against.8%, while in France it dropped to.6% against.9%. Growth rate in the volume of world trade in goods and services decreased to 6.6% in 7, against 9.% in 6. The overall real domestic demand rate of growth decreased in most major industrial countries and the Euro area. In the USA, it fell to.4% in 7, against.8% in 6, in France to.5%, against.4% and in Japan to.% against.4%, in Germany to.%, against.9%. However, in Britain it rose to 3.4%, against 3.%. ANNUAL REPORT 7 9

12 International real interest rates on the US $ (for six months) rose to.6% in 7 against.% in 6. Likewise, international long - term interest rates rose to.4% in 7 against.7% in 6. ANNUAL REPORT 7

13 P A R T - I I ECONOMIC, FINANCIAL AND BANKING TRENDS IN THE UNITED ARAB EMIRATES

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15 PART - II Economic, Financial and Banking Trends in The United Arab Emirates. General Economic Activity Gross domestic product at current prices grew by 6.8% in 7 compared to its level in 6, reaching AED billion. The rate of increase in non-oil sectors reached 6.%. The output of these sectors constituted 6.4% of gross domestic product in 7. The value of the output of oil and natural gas sector rose from AED billion in 6 to AED 8.64 billion in 7, i.e., an increase by 8.%. Preliminary estimates of the balance of payments showed that surpluses were achieved in both the trade balance and the current account in 7. The surplus in the trade balance (FOB) increased by.8% and in the current account by.7% above the levels achieved in 6. The overall balance achieved a surplus of AED 83.4 billion in 7 against a surplus of AED 3.89 billion in 6. With regard to monetary and banking developments, money supply (M) rose by 5.4% to reach AED 8.67 billion by the end of 7. Quasimonetary deposits increased by AED 4.76 billion (37.5%) and, as a result, broad money (M) expanded by AED 66.4 billion (4.7%) to reach AED billion. An analysis of the factors affecting broad money (M) shows that the impact of net foreign assets was expansionary, by AED 4.87 billion (3.%). The impact of domestic credit, which rose by AED billion (4.%) was expansionary. Likewise, the impact of net other factors (capital, reserves, provisions and other items), which dropped by AED.79 billion (.%) on broad money, was expansionary. Financial markets in the UAE witnessed an increase in trade volumes during 7. Trading value in Abu Dhabi Securities Market rose by 48.4% and in Dubai Financial Market by 9.%. ANNUAL REPORT 7 3

16 . Gross Domestic Product Preliminary estimates published by the Ministry of Economy indicate that the value of gross domestic product, at current prices, rose from AED 64.6 billion in 6 to AED billion in 7 (6.8%).The non-oil sectors recorded an increase of 6.%, reaching AED billion while its contribution to gross domestic product dropped from 6.9% to 6.4%. On the other hand, the value added of the oil and gas sector recorded an increase of 8.% in 7, compared to 6, with its value reaching AED 8.63 billion against AED 39. billion in 6 owing to the increase in oil prices by.9% which brought their wighted average to US $ 7.7 a barrel against US $ a barrel in 6. Table (-) below shows the remarkable development achieved in the various non-oil sectors in 7, thanks to appropriate economic policies, increasing economic activity, particularly in the construction and building sector, the manufacturing industries sector, the finanicial entrprises sector and other sectors such as transportation, communication and real estate, in addition to the State s role in supporting and developing government services and supporting electricity and agriculture sectors. Gross Domestic Product (By Sector) * Including agriculture, livestock & fishing, electricity & water, restaurants & hotels, social & personal services and household services. 4 ANNUAL REPORT 7

17 Table ( - ) Gross Domestic Product by Economic Sectors (at current prices) (In Millions of AEDs) Sectors 6* 7* () Non-Financial Enterprises Sector - Agriculture, Livestock and Fishery - Extractive Industries A. Crude Oil & Natural Gas B. Other - Manufacturing Industries - Electricity, Gas and Water - Construction - Wholesale / Retail Trade and Maintenance - Restaurants and Hotels - Transportation, Storage and Communication - Real Estate and Business Services - Social and Private Services () Financial Enterprises Sector (3) Government Services Sector - Household Services (Less): Imputed Bank Services Charges TOTAL TOTAL NON-OIL SECTORS Source: Ministry of Economy * Preliminary Data. ** Estimates 554,6,595 39,5 37,95,63 75,555 9,796 46,48 64,345,733 39,63 47,455 8,958 36,75 4,53,7 9,548 64,63 386,67 647,394,797 8,633 8,34,93 9,53,893 58,3 7,78,49 4,96 55,495 9,69 4,99 49,66,798,645 79,73 448,39 ANNUAL REPORT 7 5

18 A review of growth and contribution of non-oil sectors to gross domestic product in 7 shows that the building and construction sector recorded a higher rate of growth of 5.6% in 7, compared to 6 level. The value-added of this sector rose from AED billion in 6 to AED 58.3 billion in 7, while its contribution to gross domestic product increased from 7.4% to 8.%. As a result of the State s continued commitment to provide higher standard public services to meet the increasing requirements of a growing population, the output of the government services sector increased by.7% in 7, compared to 6 level. The value-added of this sector reached AED 49.7 billion against AED 4.5 billion and its contribution to gross domestic product rose from 6.4% to 6.8%. The output of the manufacturing industries sector rose from AED billion in 6 to AED 9.53 billion in 7 (9.8%). Such increase was due to a rise in prices of petroleum products and gas, in line with the increase in oil prices during 7. The value added of the real estate and business services sector recorded an increase of 6.9% in 7 compared to 6 levels, rising from AED billion in 6 to AED 55.5 billion in 7. This increase was mainly owed to a rise in number and prices of residential units. It is noteworthy that the contribution of this sector to gross domestic product remained unchanged at 6 level (7.6%). As a result of strengthening commercial activity in the UAE, the value added of of wholesale, retail trade and maintenance sector increased by 3.%, rising from AED billion in 6 to AED 7.78 billion in 7 owing to the incraese in value and volume of imports, on the one hand, and the increase in domestic industrial prodution on the other. 6 ANNUAL REPORT 7

19 The financial enterprises sector achieved a growth rate of.5% in 7 compared to 6 level. The value-added of this sector rose from AED 36.7 billion in 6 to AED 4.9 billion in 7. Such figures reflect increased activity by banking and insurance companies, with banking operations expanding to meet the requirements of rela estate and construction activities on the one hand, and the need for insurance services arising as a rersult of expanding eonomic activity on the other. The transportation, storage and communication sector recorded a growth rate of 8.3% in 7, compared to 6 levels, reaching AED 4.93 billion although its contribution to gross domestic product dropped from 6.3% in 6 to 5.9% in 7. The increase in the value added of this sector may be attributed to the pick-up in communication services activity in general and the entry of DU Telecommunications Company to the market during 7. It may also be attributed to the increase in air transportation activity resulting from growing numbers of tourists, and the increase in sea transportation resulting from increases in volumes of imports and exports. With the expansion in tourism activity in the country, and with all necessary facilities that would ensure an effective role for the hotels and restaurants sector in the economy in place, the output of this sector grew by 6.4% in 7, compared to 6 level, reaching AED.4 billion. With gross domestic product, at current prices, increasing by 6.8% against an increase by 6.% in population, GDP per capita rose by.% in 7, compared to 6, reaching AED 6.6 thousand against AED 47.7 thousand in 6. ANNUAL REPORT 7 7

20 Sectors Table ( - ) Sector Shares of Gross Domestic Product * Ratio to GPP excluding manufacturing industries. Gross Domestic Product (In Percent) Non-Mining Gross Domestic Product* A. Goods Production Sectors Agriculture, Livestock & Fishery Mining Manufacturing Construction Electricity, Gas & Water B. Services Sectors As a result of the increase in the contribution of the oil sector, the contribution of the goods production sectors to total output rose from 6.4% in 6 to 6.4% in 7. When excluding the output of the extracting industries (mainly oil and natural gas), the contribution of the goods production sectors would rise in 7 to 38.6% against 37.5% in 6. That means that the services sector accounted for nearly 6.4% of total non-mining output during 7, compared to 6.5% in 6. Analysis of estimates of gross domestic product by major expenditure categories show that gross final consumption (government and private) increased by.% in 7, compared to its 6 level, reaching AED billion and hence its ratio to total output rose from 53.3% in 6 to 54.8% in 7. Due to population increase and higher prices, private final consumption increased by 7.7% in 7, reaching AED billion and forming 8.8% of final gross consumption spending. 8 ANNUAL REPORT 7

21 Table ( - 3) Expenditure on Gross Domestic Product (at current prices) (In Millions of AEDs) Spending 6* 7** Final Consumption: 39, ,57 - Government Consumption 57,96 76,9 - Private Consumption 7,793 39,867 Gross Fixed Capital Formation:,999 48,479 - Government 6,748,59 - Public Sector 37,94 4,99 - Private Sector 66,39 84,38 Variation in Inventory 6,663 7,435 Exports of Goods & Services 534, ,345 Minus: Imports of Goods & Services 367, ,584 - Net Exports 67,7 77,76 Gross Domestic Product (at current prices) 64,63 79,73 Source : Ministry of Economy * Preliminary Estimates. ** Estimates Gross fixed capital formation rose by.7% in 7, compared to its level in 6, reaching AED billion against AED. billion in 6. The share of the private sector in gross fixed capital formation rose from 54.8% of total capital formation to 56.8% at the expense of the government and the public sectors, whose combined share dropped from 45.% in 6 to 43.% in 7, a clear indication of expanding private sector activity in the UAE. On the other hand, net exports of goods and services increased from AED 67. billion in 6 to AED billion in 7 (6.3%). ANNUAL REPORT 7 9

22 3. Population and Labour UAE population grew by 6.% during 7, compared to 6 level, reaching 4.49 millions. Males constituted 68.7% of the population. The shares of emirates of Abu Dhabi, Dubai and Sharjah in total UAE population reached 33.3%, 3.9% and 9.7%, respectively. Table ( -4) Population by Gender and Emirate (6 & 7*) (In Thousands) Emirates Males Females Total Abu Dhabi ,43,493 Dubai,3, ,37,478 Sharjah Ajman Umm Al Qaiwain Ras Al Khaimah Fujairah Grand Total,895 3,84,334,44 4,9 4,488 Source : Ministry of Economy * Preliminary Estimates Table (-5) below, which shows distribution of population by gender and age groups, indicates that the number of population in the age group (less than 5 years) reached 864 thousand in 7, compared to 8 thousand in 6, an increase of 43 thousand (5.%). The number of population in the age group (5 years to less than 4 years) reached.7 million in 7, compared to.54 million in 6, an increase of 64.6 thousand (6.5%). ANNUAL REPORT 7

23 The number of population in the age group (4 years and up to less than 6 years) increased to thousand, with an increase of 48.9 thousand. The number of population in the age group (6 years and more) also increased by 4.6% compared to its level in 6 to reach 68.8 thousand. Table ( - 5) Population by Gender & Age Group * Age Groups Male Female Total Male Female Total Male Female Total Less than 5 46,37 384,54 8,57 47, ,746 8,55 45,33 43,658 86,99 5 to less than 4,753,79 74,89,468,58,8, ,797,544,34,935,658 77,3,78,86 4 to less than 6 595,83 77,8 773,5 65,45 8, ,4 654,79 9,67 846,36 6 and above 4,94 3,984 64,78 4,333 4,58 65,84 43,3 5,53 68,83 T O T A L,86,5,3,75 4,6,47,895,,334, 4,9, 3,84,,44, 4,488, * Mid-year estimates. The total number of employees in the UAE rose during 7 by nearly 6 thousand, reaching 3. million workers. The construction sector ranked first in terms of number of employees, which reached 64 thousand, i.e.,.% of the total number of employees in 7. The wholesale, retail trade and maintenance services sector ranked second (587 thousand employees and a ratio of 9.% of the total number). The manufacturing industries ranked third (393 thousand employees and a ratio of.7% of the total number). Government services sector ranked fourth (334 thousand employees and a ratio of.8% of the total number). The ratio of employees in other sectors ranged between.% and 8.4% of the total number of employees. ANNUAL REPORT 7

24 Table ( - 6) Employees by Economic Sectors Sectors 5 6* 7** Non-Financial Enterprises Sector,,33,86,57,466,94 Agriculture, Livestock and Fisheries. 93,44 9,66 5,499 Extractive Industries. 38,694 4,96 45,99 Crude Oil & Natural Gas. 33, 35,956 38,783 Quarries. 5,494 5,95 6,48 Manufacturing Industries. 336, ,5 393,73 Water, Gas and Electricity. 34,7 37,46 39,958 Construction and Building 534, ,753 64,4 Wholesale / Retail Trade and Maintenance. 5,47 544,9 586,897 Restaurants and Hotels. 6,65 6,94 36, Transportation, Storage and Communication 6,768 76,78 9,33 Real Estate and Business Services. 77,858 84,3 9,947 Social and Private Services. 4,736 4,59 34,6 Financial Enterprises Sector 3,5 33,589 36,9 Government Services Sector. 86,5 39,85 334,7 Household.,56 4,975 59,96 Total,65,958,87,987 3,96,646 Source : Ministry of Economy. * Preliminary Data. ** Estimates ANNUAL REPORT 7

25 4. Monetary and Credit Policy 4- Dirham Exchange Rate Due to its fixed peg to the US dollar, the dirham exchange rate dropped against most major currencies during 7, as a result of depreciation of the US dollar against most major currencies during the same period. The dirham exchange rate fell against the Euro (8.3%), the Pound Sterling (7.8%) and the SDR (3.9%) and the Swiss franc (4.4%), while it rose against the Japanese yen (.%). The rate of exchange of the dirham remained unchanged against all GCC currencies at the end of 7, compared to its rate at the end of 6. Table ( - 7) Dirham Exchange Rate Index Against Major Foreign Currencies (999 = ) Currency US Dollar Japanese Yen Euro Pound Sterling Swiss Franc SDR * Base year changed from 99 to 999 flowing addition of the Euro. ANNUAL REPORT 7 3

26 4- Monetary and Banking Indicators 4-- Monetary Survey The monetary and banking indicators rose during 7, as money supply (M) increased by AED 6.65 billion (5.4%) to reach AED 8.67 billion, compared to AED. billion at the end of 6. Monetary deposits also rose by AED billion and currency with the public rose by AED 4. billion (8.8%). Money Supply & Broad Money (In Millions of AEDs) Currency with the Public M M M3 Broad money (M) expanded by AED 66.4 billion (4.7%) to reach AED billion. This was due to the increase in money supply (M) together with a rise of AED 4.76 billion (37.5%) in quasi-monetary deposits, which reached AED billion. The overall broad money (M3) rose by AED 9.5 billion (38.4%) to reach AED billion at the end of 7. This increase resulted from the expansion of broad money (M) and the increase by AED 5.84 billion (4.7%) in government deposits that reached AED 3.53 billion. 4 ANNUAL REPORT 7 ANNUAL REPORT 7

27 Table ( - 8) Major Monetary Indicators and Factors Influencing Them (In Millions of AEDs) Items 6 7 Currency with the Public,837 5,94 Monetary Deposits 98,8 55,7 Money Supply (M),9 8,664 Quasi - Monetary Deposits 79,74 384,38 Broad Money (M) 399,93 565,7 Government Deposits 4,69 3,57 Overall Broad Money (M3) 53, ,9 Factors Influencing Broad Money (M) Net Foreign Assets 55,634 6,5 Net Domestic Credit 399,7 559,6 Net Other Factors (-)55,6 ( )53,84 * Including deposits of residents with national banks branches (including offshore units) and their subsidiaries abroad. (In Millions of AEDs) Total Foreign Assets Net Foreign Assets Claims on Private Sector Net Claims on Government Monetary Survey A review of the factors influencing broad money (M) shows that the effect of net foreign assets was expansionary, as they rose by AED 4.87 billion (3.%). Likewise, the effect of net domestic credit on broad money (M) was expansionary, as it rose by AED billion (4.%). Net other factors, which decreased by AED.79 billion (.%), had an expansionary impact on broad money (M) ANNUAL REPORT 7 ANNUAL REPORT 7 5

28 4-- Banks Operating in the Country The aggregated balance sheet of banks operating in the UAE grew by AED billion (4.3%) to reach AED 3.7 billion at the end of 7, against AED billion at the end of 6. Cash and deposits with the Central Bank increased by AED billion (73.5%) to reach AED billion at the end of 7. The position of net foreign assets of banks reversed from positive at the end of 6. when it recorded AED 54.5 billion to negative at the end of 7 as it recorded AED 4.74 billion. This change was due to the fact that foreign assets decreased by AED 35.4 billion (5.%) and foreign liabilities rose by AED billion (8.6%). Credit extended by banks operating in the UAE increased by AED 8.66 billion (33.6%) to record AED 78.8 billion, against an increase by AED 4.53 billion (36.%) recorded in 6. Growth in this item at the end of 7 had mainly occurred in credit extended to residents which rose by AED 73.3 billion (36.6%) to reach AED billion. Likewise, credit extended to non-residents rose by AED 7.33 billion (.6%) to reach AED 7.6 billion. Distribution of credit to residents according to type of facility shows that the increase in credit mainly occurred in loans, advances and overdrafts, which rose by AED 4.69 billion (3.7%). The bulk of this increase went to the industrial and trading enterprises, as the credit extended to these institutions rose by AED billion (3.4%) at the end of 7, forming 55.7% of total loans, advances and overdrafts. Loans, Advances and Overdrafts (total) to Residents by Sectors (As at End of December 7) Credit extended under others, which includes, inter-alia, credit extended to individuals, also rose by AED 36. billion (9.4%), to government sector by AED.5 billion (.%) and to financial institutions by AED 8.35 billion (98.7%). 6 ANNUAL REPORT 7 ANNUAL REPORT 7

29 Credit extended to residents against discounted commercial bills grew by AED 3.79 billion (39.8%) and credit extended to residents in the form of mortgaged real estate loans rose by AED 7.84 billion (89.8%). Table ( - 9) Credit (Gross) Extended by Banks (In Millions of AEDs) Items 6 7 ) Credit to Residents: 474,6 647,48 A) Loans, Advances and Overdrafts : 433,63 575,3 - Government 47,885 58,4 - Financial Institutions 8,593 36,94 - Industrial and Commercial Institutions 44,37 3,665 - Other 3,8 59,34 B) Mortgaged Real Estate Loans 3,6 58,859 C) Discounted Commercial Bills 9,5 3,3 ) Credit to Non-Residents: 63,64 7,598 A) Loans, Advances and Overdrafts 54,88 6,66 B) Real Estate Mortgaged Loans C) Discounted Commercial Bills 8,597 8,486 Total Bank Credit 537,45 78,85 Analysis of credit to residents according to economic activity shows that all economic sectors witnessed increases in the amounts of bank credit they had received. Credit extended to the trade sector rose by AED 3.55 billion (.6%), reaching AED 6.9 billion at the end of 7. Likewise, credit extended to the construction sector rose by AED 4.7 billion (5.9%), to the government by AED.5 billion (.%), to the mining and industry sector by AED.4 billion (4.%), to other financial institutions by AED 8.35 billion (98.7%), to the transportation, storage and communication sector by AED.57 billion (3.%), to the agriculture sector by AED 6 million (8.6%) and to the water and electricity sector by AED.45 billion (3.%). Credit extended to other sectors also increased by AED.5 billion (5.6%). * Excluding the Restricted License Bank. ANNUAL REPORT 7 ANNUAL REPORT 7 7

30 Table ( - ) Bank Credit (Gross) to Residents by Economic Activity (In Millions of AEDs) Economic Sectors Agriculture,43,664 - Mining and Industry 3,7 4,8 - Electricity and Water,9,536 - Construction 54,344 68,47 - Trade 9,637 6,9 - Transportation, Storage and Communication 9,46,987 - Other Financial Institutions 8,594 36,94 - Government 47,885 58,4 - Others 98,79 99,36 Total 474,6 647,48 * Not including the Restricted License Bank. By the end of 7, total deposits with banks operating in the UAE amounted to AED 76. billion, recording an increase of AED 97. billion (38.%) compared to its level at the end of 6. Table ( - ) Deposits According to Ownership (In Millions of AEDs) Sectors 6 7 Total Deposits 58,86 76, A) Residents Deposits: 469,3 65,338 - Government 93,68 4,579 - Public Sector* 38,4 36,96 - Private Sector* 76,46 7,4 - Individuals 4,3,78 - Others 9,33 5,54 B) Non-Residents Deposits 49,484 64,683 * Including Business Sector, Industry and Financial Institutions. 8 ANNUAL REPORT 7 ANNUAL REPORT 7

31 The increase at the end of 7 mainly occurred in residents deposits which rose by AED 8. billion (38.8%). Non-residents deposits also increased by AED 5. billion. Data on the distribution of residents' deposits by ownership indicate that individuals' deposits grew by 4.5% to form 3.% of total residents' deposits. Deposits of the private sector, which include business, industries and financial institutions, also grew by 54.6%, constituting 4.8% of total residents' deposits. Meanwhile, government deposits constituted 7.6%, and public sector and other deposits constituted 5.6% and 3.9%, respectively. Ownership of Deposits (As at End of December 7) Excluding government deposits and commercial prepayments, total deposits classified according to type reflected an increase in current deposits by AED billion (5.4%). Time deposits increased by AED 99.5 billion (36.5%) and savings deposits increased by AED 8.6 billion (36.4%). Table ( - ) Deposits According to Type and Currency * (In Millions of AEDs) Items 6 7 A) Type: -Current Deposits 3,886 88,859 - Savings Deposits,7 3,34 - Time Deposits 7,367 37,865 Total 48,43 59,958 B) Currency: -Deposits in Local Currency 8,66 454,9 - Deposits in Foreign Currency 36,57 36,79 Total 48,43 59,958 * Excluding government deposits, commercial prepayments and inter-bank deposits. ANNUAL REPORT 7 ANNUAL REPORT 7 9

32 Distribution of private sector deposits, according to type of currency as at end of 7, shows that deposits in local currency increased by AED 7.6 billion (6.%), while deposits in foreign currency rose by AED 47 million (.3%). Accordingly, deposits in local currency accounted for 76.9% of total private sector deposits. An analysis of banks capital position at the end of 7 shows that the total of capital and reserves accounts reached AED 3.88 billion, registering an increase of AED 6.79 billion (5.7%), compared to the end of 6. Accordingly, the ratio of capital and reserves to total assets reached.7%. Banks net unclassified liabilities declined by AED 8.4 million (4.%) to reach AED 6.5 billion at the end of 7. This resulted from an increase of AED.67 billion (3.9%) in unclassified liabilities, which reached AED 7.75 billion at the end of 7, and a rise of AED.9 billion (9.%) in unclassified assets, which reached AED 44.4 billion. 3 ANNUAL REPORT 7 ANNUAL REPORT 7

33 5. The Balance of Payments Owing to the increase in receipts of exports of the hydrocarbon and nonhydrocarbon sectors, the surplus in the trade balance (FOB) rose in 7 by.8% compared to 6, reaching AED 36.5 billion, despite increase in total imports. The value of exports of the hydrocarbon sector rose by.4% to reach AED 39.9 billion, and the value of exports of the non- hydrocarbon sector increased by almost similar ratio to reach AED 5.73 billion. The increase in the value of exports of the hydrocarbon sector may be attributed to the rise in oil prices, and hence prices of natural gas, condensates and petroleum products, during 7. The weighted average of oil prices rose from US $ a barrel in 6 to US $ 7.7 a barrel in 7 (.9%) and as a result, the value of oil exports ( including condensates, which are not included in the country s production quota set by OPEC) rose from AED 3.37 billion in 6 to AED 6.4 billion in 7 (.5%) and the value of gas exports increased by 9.3%, compared to 6, to reach AED 8.5 billion. Likewise, receipts of petroleum products rose to AED. billion in 7, against AED 8. billion in 6 (.%). As a result of an established government policy of diversifying sources of income through creation of a favorable environment for the industrial sector and owing to domestic financing institutions continued provision of financing at reasonable terms, the value of commodity exports continued to rise over the past few years, reaching AED 4.7 billion in 7, against AED 9.3 billion in 6 (43.9%). The value of exports of the free zones also increased from AED 75.9 billion in 6 to AED billion in 7. Moreover, the value of re-exports (including nonmonetary gold) also rose to AED 8.69 billion in 7, against AED 7.7 billion in 6 (3.4%). ANNUAL REPORT 7 ANNUAL REPORT 7 3

34 On the other hand, the value of total imports - CIF (including estimated goods imports to all emirates of the country, free zone imports and imports of non-monetary gold) registered a new record, reaching AED billion in 7, against AED billion in 6 (3.4%). This may be attributed to population increase, the need to meet the requirements of re-exports, a higher propensity to spend among individuals, increases in numbers of tourists, in addition to the role of commercial festivals held at various times of the year in invigorating commercial activity. It is noteworthy that as a result of depreciation of the US dollar, and hence the UAE dirham against most major currencies and against currencies of UAE major trade partners, in addition to the increase in prices of commodities in countries of origin, the increase in value of imports may not reflect increase in their volume. With the continued increase in estimated net imports (minus total estimated total value of re-exports and exclusive of free zones imports and imports of non-moonetary gold) by 4.% in 7, compared to 6 levels, and an increase by 6.% in population during the same period, imports per capita rose from AED 7.98 thousand in 6 to AED 37. thousand in 7 (33.%). Data on the structure of imports in 7 show that consumer goods, capital goods and intermediate goods maintained the same shares achieved in 6, recording 54.%, 35.5% and.3% of total imports respectively. 3 ANNUAL REPORT 7 ANNUAL REPORT 7

35 The geographical distribution of total imports shows that the share of Asian countries increased from 46.7% in 6 to 46.9% in 7.Within this group, India continued to rank first. Menawhile, the share of European countries dropped from 35.3% to 35.%, with the European Union countries recording a share of 8.5%. Within this group, Germany ranked first (7.7%) followed by the United Kingdom (5.%). The share of the group of Arab countries increased from 5.5% in 6 to 5.9% in 7, while the share of the group of American counries declined from 9.5% to 9.3%. Within the current account items, the net outcome of investment income achieved by various investment institutions in 7 increased from AED 7.4 billion in 6 to AED.5 billion in 7. The debit balance of services, which includes freight and insurance, tourism, travel and government services continued to rise, reaching AED 87.6 billion in 7, against AED 66.3 billion in 6 (3.3%). The net balance of the financial account reached AED 4.5 billion in 7, against AED (-58.99) billion in 6. This was mainly due to the increase in private sector s inflows, which rose from AED billion in 6 to AED 7.3 billion in 7 (48.%), despite the increase in the public sector s outflows from AED billion in 6 to AED 75.8 billion in 7. The final position of the balance of payments in 7 shows a surplus of AED 83.4 billion, against a surplus of AED 3.89 billion in 6. ANNUAL REPORT 7 ANNUAL REPORT 7 33

36 Table ( - 3) Estimates of U.A.E. Balance of Payments * (In Millions of AEDs) Items 6* 7* Current Account Trade Balance (FOB) Total Exports of Hydrocarbon Oil Exports Petroleum Products Exports Gas Exports. Total Goods Exports Free Zone Exports Other Exports Re-Exports Total Exports and Re-Exports (FOB) Total Imports (FOB) Total Imports (CIF) Other Imports 3 Free Zone Imports Services (Net) Travel Transportation Government Services Freight and Insurance Investment Income(Net) Banking System 4 Private Non-Banks Public Sector Enterprises Foreign Hydrocarbon Companies in UAE Transfers (Net) Government Transfers Workers Transfers 3,375,3 57,44 3,37 7,995 6,75 4,58 75,86 9,3 7,76 534,666-33, ,459-9,5-76,49-66,6-4,57-8,86-44,95 7,4 8,8-6 3, -,8-3, -,5-8,76 35,936 36,5 39,9 6,4, 8,5 5,79 83,66 4,68 8, ,345-48,94-486, ,78-9,866-87,64-9,74 -, ,39,5 8,5 -, 4, -6,55-34, -,59-3,95 ) Including Estimates of Other Exports from all Emirates. ) Including Re-exports of Non-Monetary Gold. 3) Including Estimates of Imports of all Emirates, in addition to imports of Non-Monetary Gold. 4) Central Bank and all Banks. * Adjustable figures and preliminary estimates. 34 ANNUAL REPORT 7 ANNUAL REPORT 7

37 Table ( - 3) Cont. Estimates of U.A.E. Balance of Payments * (In Millions of AEDs) Items 6* 7* Capital and Financial Account (Net) Capital Account 5 Financial Account Private Sector Enterprises Direct Investment Outward Inward Portfolio Investments Banks Securities Other Investment Private Non-Banks Public Sector Enterprises -58,987-58,987 87,593 7,3-4, 47,3 4,4 35,563 -,75 48,78 4,6-46,58 4, ,54 7,34 -,4-53,5 5, 5,3 78,34 -,57 79,48 35, -75,8 Net Errors and Omissions -49,53 5,788 Overall Balance: Surplus (+) or Deficit (-) 3,885 83,38 Changes in Reserves {(-) Indicates Increase} -3,885-83,38 Net Foreign Assets with Central Bank Reserve Position with IMF -4, ,7-5) Data available at present. * Adjustable figures and preliminary estimates. ANNUAL REPORT 7 ANNUAL REPORT 7 35

38 6. Financial Markets 6- Abu Dhabi Securities Market (ADSM) 6-- ADSM Performance during 7 ADSM witnessed marked growth in all performance indicators during 7. Trading volume increased by 48.4%, traded shares by 36.9% and executed deals by 54.% compared to 6 levels. Market capitalization of listed companies reached AED billion. The general share price index rose by 5.7%, while the number of listed companies maintained its end of 6 level at 6 companies. a) Value of Traded Shares Value of traded shares increased by AED 4.74 billion during 7 to reach AED billion by year end, compared to AED 7.6 billion at the end of 6. b) Number of Traded Shares The number of traded shares rose by 4.8 billion shares during 7, reaching 5.7 billion shares, compared to.3 billion shares at the end of 6. c) Number of Transactions The number of executed transactions rose by 387 thousand to reach. million transactions in 7, compared to 76 thousand transactions at the end of ANNUAL REPORT 7

39 Table ( - 4) Abu Dhabi Securities Market Number of Traded Shares Value of Traded Shares (AED) Number of Executed Transactions Market Capitalization (AED) Number of Listed Companies General Share Price Index (End of Period) 6,96,9,367 7,6,67,93 75,74 96,567,447,43 6 3, 7 5,6,597,9 75,338,546,548,,67 445,39,68,4 6 4,55 Distribution of The Value of Traded Shares at ADSM by Sector - 7 Health Care.% Telecommunications 4.8% Energy 4.7% Insurance % Banking & Financial Services 5.7% Industry.6% Construction 4.8% Consumption Services.5% Real Estate 36.4% ANNUAL REPORT 7 37

40 6- Dubai Financial Market (DFM) 6-- DFM Performance During 7 a) Value of Traded Shares Value of traded shares increased by AED 3.44 billion during 7, reaching AED billion, compared to AED billion at the end of 6. b) Number of Traded Shares The total number of traded shares increased by 65.6 billion shares during 7, reaching 5.6 billion shares, compared to billion shares at the end of 6. c) Number of Transactions The total number of executed transactions fell by 7 thousand to reach.5 million transactions in 7, compared to.4 million transactions at the end of 6. d) Number of Listed Companies The year 7 witnessed listing of new companies in DFM, bringing the total number of companies listed in the market to 58, i.e., an increase of 6.% compared to the number of listed companies at the end of 6. The market capitalization of the listed companies amounted to AED billion at the end of 7, compared to AED 3.3 billion at the end of 6, an increase of 6.5%. 38 ANNUAL REPORT 7

41 e) Share Price Index DFM performance recorded an increase at the end of 7 by 43.7% compared to end of 6. The market s general index reached 5,93 points by the end of 7, against 4,7 points at the end of 6. Distribution of the Value of Traded Shares at DFM By Sector - 7 Transportation 4.6% Utilities.7% Banking 7.% Telecommunications.9% Staples % Real Estate and Construction 38.3% Insurance 3.8% Materials % Investment and Financial Services.7% Table ( - 5) Dubai Financial Market Number of Traded Shares Value of Traded Shares (AED) Number of Executed Transactions Market Capitalization (AED) Number of Listed Companies General Index (End of Period) 6 39,643,78, 347,548,39,5,4,99 3,3,4,9 46 4,7 7 5,56,997,55 378,99,55,553,5, 499,79,446, ,93 ANNUAL REPORT 7 39

42

43 P A R T - I I I CENTRAL BANK ACHIEVEMENTS

44

45 PART - III Central Bank Achievements. Central Bank Balance Sheet The total assets/liabilities of the Central Bank grew by AED 8.7 billion (77.%) to reach AED billion at the end of December 7, against AED 3.3 billion at the end of 6. On the assets side, deposits rose by AED 6.7 billion (.%) to reach AED 84.4 billion at the end of 7. Held-To-Maturity securities also rose by AED billion (8.3%) to reach AED billion and other assets increased by AED.7 million (8.7%) to reach AED.59 billion. Meanwhile, cash and bank balances dropped by AED 96 million (.6%) to reach AED 39 million. On the liabilities side, current accounts and deposits increased by AED 34.3 billion (.%) to reach AED 65.6 billion and certificates of deposit by AED 4.6 billion (437.%) to reach AED billion. Likewise, currency issued grew by AED 4.84 billion (8.%) to reach AED 3.67 billion and other liabilities rose from AED 55 million at the end of 6 to AED.45 billion at the end of 7. ANNUAL REPORT 7 43

46 Table (3 - ) Central Bank Balance Sheet (In Millions of AEDs) Items End of Period December 6 December 7 Assets Cash & Banks Balances 45 Deposits 57,3 Trading Securities Held-To-Maturity Securities 43,99 Loans & Advances 65 Other Assets,47 Fixed Assets 35 Total Assets 3, ,4-98,857 -, ,949 Liabilities Current Accounts & Deposits 3,966 Certificates of Deposit 3,3 Currency Issued 6,83 Other Liabilities 55 Total Liabilities 9,375 65,6 73,577 3,67,449 7,958 Capital Authorized Issued & Fully Paid Capital 3 General Reserve, Special Reserve 6 Permanent Deposit from Federal Government,98 Total Liabilities & Capital 3,33 Contra Accounts 35 3, 6,43 85,949 56,9 44 ANNUAL REPORT 7

47 . Central Bank Financial Results The balance of foreign currency assets of the Central Bank reached AED 85.7 billion at the end of 7, registering an increase of 79.3%, compared to end of 6 level and accounting for 99.9% of the total Central Bank Assets. The daily average of these balances reached AED 58.8 billion during 7, against AED 88. billion in 6. This increase was due to the increase in the net dirham against US dollar sales to the local government and banks operating in the country, in addition to the increase in the statutory reserve. Due to the increase in its foreign currency assets, in addition to investment of a portion of its assets in premium foreign bonds, the Central Bank achieved a net profit of AED 3.78 billion at the end of 7, against AED.65 billion at the end of 6 Table (3 - ) Investment of the Central Bank s Foreign Assets (In Billions of AEDs) Items 6 7 Total Foreign Assets.3 85,7 Central Bank s Investments in Securities, Premium Bonds and Treasury ,9 Deposit Accounts and Cash With Banks Abroad ,4 Other Foreign Assets.3,4 Net Profit From Foreign Assets.8 4 Net Profit ANNUAL REPORT 7 45

48 3. Currency Issue Issue of currency is solely and exclusively exercised by the Central Bank of UAE. The dirham is the official currency unit of the United Arab Emirates and is divided into equal units each called Fills. 3- Currency Notes The total value of issued currency notes of various denominations reached AED 3. billion at the end of 7, against AED 6.43 billion at the end of 6, an increase of AED 4.79 billion (8.%). 3- Currency Coins The total value of issued non-gold currency coins of various denominations reached AED 45.9 million at the end of 7, against AED million at the end of 6, an increase of AED 5. million (3.%). 3-3 New Issues During Currency Issues No new currency notes were issued during Commemorative Coins In contribution to the commemoration of important national occasions, gold and silver jubilee of distinguished institutions, the Central Bank issued several gold, silver and dirham commemorative coins during 7, as summarized in table 3-3 below: 46 ANNUAL REPORT 7

49 Table (3-3) Issues of Commemorative Coins During 7 Issue date Occasion Issue Type 8//7 The 3th Anniversary of Zakum Development Company (ZADCO) Commemorative in Abu Dhabi Emirate. Dirham 7/3/7 The 5th Anniversary of the Scouting Movement in the UAE. Commemorative Dirham //7 The 3th Anniversary of the first LNG shipment from Abu Dhabi Commemorative Gas Liquefaction Company L.T.D (ADGAS) Plant. Dirham AED 5 (Silver) //7 The Golden Jubilee of Abu Dhabi Police Commemorative Dirham ANNUAL REPORT 7 47

50 4. Organization of the Banking and Financial Sector 4- Organization of Banking Pursuant to provisions of Union Law No- of 98 regarding the Central Bank, the monetary system and organization of banking, and within a context of continued efforts to organize banking activities, the Central Bank took several measures and issued a number of important directives and circulars during 7. The most important of these measures are summarized as follows:. Notice No. 688/, dated 3/8/7, regarding implementation of a secure electronic system for exchange of correspondence with banks, finance companies and investment companies (sending/receiving) for inquiries relating to financing of commercial buildings, as per Central Bank notice No- 65/5 dated 8//5.. Notice No. 689/7, dated 5/8/7 regarding direct and indirect exposures to US sub-prime mortgage. This notice was aimed at giving an accurate picture of the position of UAE banks (or finance/investment companies) on this regard, and hence avoid negative publicity. 3. Notice No- 4335/7, dated 7//7 whereby banks operating in the UAE were informed that with effect from 8 November 7, a new expanded Central Bank CD issuance system based on auction will be implemented, to enable banks to subscribe to these CDs at their preferred interest rate, amount and tenor. The new system will enable banks to buy Central Bank CDs for maturities ranging from one week to 5 years. It will also enable interested banks to buy Central bank CDs denominated in US dollars and Euros. Banks will also be able to transact CD Repo agreements with the Central Bank for periods not exceeding three months or the maturity date of the CD, whichever is coming sooner. 48 ANNUAL REPORT 7

51 4. Notice No- 3346/7, dated 9//7 regarding streamlining of the present system of submission of Banking Return Forms (BRFs), by introducing an online reporting procedure that will enable the Central Bank to receive all BRFs electronically.. 5. Notice No- 4346/7, dated 5//7 based on Council of Ministers resolution No- 33/ of 7, which require all private sector companies and establishments to pay salaries of their staff and employees through banks operating in the UAE, with effect from st January Notice No- 545/7, dated 3/7/7 regarding Basel II - parallel run for capital calculation under standardized approach 4- Structure of the Banking System The number of national banks operating in the country increased during 7 to reach banks, compared to banks at the end of 6. The number of branches, cash offices and electronic/customers service units of these banks raeched 53 branches, including head offices, 56 cash offices and electronic/customers service units at the end of 7. The number of foreign banks operating in the country increased from 5 banks at the end of 6 to 7 at the end of 7. Meanwhile, the number of electronic services/customer services units rose from 4 to 3. However, the number of branches and cash offices remianed unchanged at 8 and, respectively. ANNUAL REPORT 7 49

52 4-3 Representative Offices The number of licensed representative offices of foreign banks and other financial institutions in the country reached 74 by the end of 7, compared to 69 offices at the end of December 6, following issuance of new licenses and cancellation of others by the Central Bank. The following table shows names of new representative offices licensed during 7. Table (3-4) New Representative Offices Licensed in 7 Serial Representative Office Emirate. Lombard Odier Darier Hentsch & Cie (Swiss) Dubai. Bank Turan Alem - (Kazakhistan) Dubai 3.. Pictet & Cie Banquiers (Swiss) Dubai 4. Muslim Commercial Bank Ltd. (Pakistan) Dubai 5. Banque Piguet & Cie S.A. (Swiss) Dubai 6. Bank Julius Bear & Co. Ltd. (Swiss) Abu Dhabi 7. Union Bank of India (India) Abu Dhabi 8. The Royal Bank of Scotland (British) Abu Dhabi 9. Rothschild Europe B.V. (Holland) Abu Dhabi 5 ANNUAL REPORT 7

53 4-4 Moneychangers Emirate At the end of December 7, the number of head offices of moneychangers operating in the UAE reached 5, with 34 branches, against head offices and 74 branches at the end of 6. Table (3-5) Number and Geographical Distribution of Licensed Moneychangers in the U.A.E. (As at 3--7) Head Office Branch Total Abu Dhabi 83 4 Dubai Sharjah Ajman 6 8 Umm-Al Qaiwain Ras Al Khaimah 6 7 Fujairah Al Ain City 5 6 Khor Fakkan City * Total Including 4 head offices and 7 branches in Al Ain city ** Including one head office and one branch in Khor Fakan city. 4-5 Monetary and Financial Brokers The number of monetary and financial brokers licensed to operate in the UAE reached 6 head offices at the end of 7. Table (3-6) New Financial and Monetary Brokers Licensed During 7 Serial Broker Name Emirate. Dubai Tadawul - L.L.C Dubai ANNUAL REPORT 7 5

54 4-6 Financial Investment Companies and Banking, Financial and Investment Consultation Establishments and Companies The number of financial investment companies and banking, financial and investment consultation establishments and companies reached 7 at the end of 7, against 5 companies at the end of 6. The following table shows companies licensed during 7. Table (3-7) Financial Investment Companies and Banking, Financial and Investment Consultation Establishments and Companies Licensed During 7 Serial Company/Establishment Name Emirate. Allied Investment Partners - P.P.Co. Abu Dhabi. Gulf Capital-P.P. Co. Abu Dhabi 4-7 Finance Companies The number of licensed financing companies increased as at end of December 7, reaching 6 companies, compared to companies at the end of December 6. The following table shows companies licensed during 7. Table (3-8) Financing Companies Licensed During 7 Serial Company Name Emirate. Aseel Finance Aseel - P.P.C Abu Dhabi. Mawarid Finance - P.P.C Dubai 3. Al Watani Al Islami Finance P.P.C Dubai 4. Abu Dhabi National Islamic Finance - P.J.S.C Abu Dhabi 5. Reem Finance - P.J.S.C Abu Dhabi 5 ANNUAL REPORT 7

55 P A R T - I V STATISTICAL SUPPLEMENT

56

57 STATISTICAL SUPPLEMENT Table No. Details Page Auditor's Report 57 S- Statement of Profit & Loss Account 58 S- Central Bank of the UAE Balance Sheet 59 S-3 Aggregated Balance Sheet of Banks 6 S-4 Monetary Survey 64 S-5 Money Supply 65 S-6 Currency Notes Issued by Denominations 66 S-7 Currency Coins Issued by Denominations 67 S-8 DMB S Foreign Assets & Liabilities 68 S-9 Bank Credit (Gross) to Residents & Non-Residents 69 S- Bank Credit (Gross) to Residents by Economic Activity 7 S- Loans, Advances & Overdrafts (Gross) to Residents by Sectors 7 S- Deposits by Ownership 7 S-3 List of National Banks & Their Branches 73 S-4 List of Foreign Banks & Their Branches 74 S-5 List of Specialized Banks, Investment Institutions, Finance Companies & Representative Offices 75 S-6 List of Licensed Financial & Monetary Intermediaries 77 S-7 List of Licensed Moneychangers, Financial Investment Companies and Banking, Financial & Investment Consultation Establishments and Companies 78

58

59 Independent Auditor s Report to the Board of Directors of The Central Bank of the United Arab Emirates Report on the Financial Statements We have audited the accompanying financial statements of the Central Bank of the United Arab Emirates ( the Bank ), which comprise the balance sheet as at 3 December 7, and the income statement, statement of changes in equity and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory notes. The Bank s financial statements for the year ended 3 December 6 were audited by another firm of auditors whose report date 8 March 7 expressed an unqualified opinion on those financial statements. Management s responsibility for the financial statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatements, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditors responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with relevant ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate for the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion. In our opinion, the financial statements present fairly, in all material respects, the financial position of the Bank as of 3 December 7, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards. ERNST & YOUNG 8 May 8 Abu Dhabi ANNUAL REPORT 7 57

60 Table (S - ) Central Bank of the United Arab Emirates Statement of Profit and Loss Account for the Year as at 3//7 compared to 3//6 (In Thousands of AEDs) Item End of Period 6 7 Interest Income,497,834 5,768,63 Investment Income,868,687,38,88 Interest Expenses (,493,98) (4,,53) Net Interest and Investment Income,87,54 3,965,58 Other Income 5,4 3,97 Net Gain / (Loss) on Revaluation of Foreign Currencies (,534) 33,998 Administration Expenses (4,9) (5,4) Provisions Reversed,5,3 Net Profit,654,95 3,778,36 58 ANNUAL REPORT 7

61 Table (S - ) Central Bank of The United Arab Emirates Balance Sheet as at 3 December 7, 6 (In Thousands of AEDs) Assets 6 7 Liabilities 6 7 Current and Call Accounts Placement with Banks Held-to-Maturity Securities Loans & Advances Other Assets Fixed Assets 45,6 57,3,68 43,98,775 65,,46,56 35,584 38,675 84,4,648 98,857,368 _,593,8 8,38 Current Accounts & Deposits Certificates of Deposit Currency Issued Other Liabilities Total Liabilities Capital Authorised, Issued & Fully Paid Capital General Reserve Special Reserve Permanent Deposit from U.A.E. Government 3,965,9 3,3, 6,83,877 55,83 9,375,8 3,,, 6,,97,537 65,6,8 73,577, 3,67,6,448,8 7,958,88 3,,, 6,,43,839,857,537 3,99,839 Total Assets 3,3,67 85,949,7 Total Liabilities & Capital 3,3,67 85,949,7 Off Balance Sheet Commitments 35,73 56,9,447 Off Balance Sheet Commitments 35,73 56,9,447 Sultan Bin Nasser Al-Suwaidi Governor ANNUAL REPORT 7 59

62 Table (S - 3) Aggregated Balance Sheet of Banks (In Millions of AEDs) End of Period 6 7 Item Dec. Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Assets Cash & Deposits with C.B. Cash in Hand (L.C.) Deposits with Central Bank Due From Resident Banks Money at Call & Short Notice Demand Deposits Time Deposits Cheques in the Course of Collection Foreign Assets Net Due from Head Office and / or Branches Abroad Due From Other Banks Abroad Cash in Hand (F.C.) Securities * Credit to Non-Residents * Other Foreign Assets 63,45 4,995 58,4 34,793,8 77 3,39,478 3,938 8,4 9, ,638 63,64 3,49 67, 3,757 63,463 33,35 3,93, 8,4 7 33,44 6,6 96, ,4 6,79 3,47 73,76 3,86 69,9 34,4 4, , ,35 6,83,7 6 56,65 59,64 3,59 88,5 4,79 83,936 4,943 3, , ,967,5 9, ,54 64,57 3,478 5,84 4,94,646 4,333 5, , ,894,39 83,336 6,45 65,74 3,88,666 4,98 8,368 39,56 3, , 3 34,939,694 85, ,9 67,63 3,983 9,74 4,663 4,6 36,46, , ,756 4,5 8, ,69 68,4 3,938 4,5 4,555 9,65 37,67 5, , ,866,948 75,96 6 7,68 68,6 4,67,789 4,73 6,86 38,63 3, , ,75 3,384 8, ,38 63,593 4,5 9,59 4,83 4,698 36,6 5,45,396 9, ,65 7,38 7,39 3 7,45 66,643 4,357 38,4 5,6 33,88 34,468 3, ,56 4 3,99 6,56 73,39 3 7,845 66,3 4,75 3,8 4,998 7,84 34,989 3,93,79 3, ,88 5,4 57, ,69 6,598 4,557 36,85 5,73 3, 44,377 5, , ,896 4,74 6, 6 57,795 7,599 4, * Including provisions for bad and doubtful debts as well as interest in suspence. 6 ANNUAL REPORT 7

63 Table (S - 3 Contd.) Aggregated Balance Sheet of Banks (In Millions of AEDs) End of Period 6 7 Item Dec. Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Domestic Credit & Investments* a) Credit Facilities Claims on Government Claims on Official Entities Loans, Advances & Overdrafts Claims on Private Sector Commercial Bills Real Estate Mortgage Loans Loans, Advances & Overdrafts Claims on other Financial Inst. Loans, Advances & Overdrafts b) Domestic Investments Unclassified Assets Fixed Assets Inter-Branch Transactions Other Assets 56,78 474,6 47,885 3,53 3,53 376,7 9,5 3,6 335,63 8,594 8,594 3,6 3,5 4, ,369 55, ,66 48,687 6,443 6,443 39,6 9,57 3, , 7,435 7,435 3,99 3,79 4, ,78 5,7 489,99 49,678 6,468 6, ,885 9,5 38, ,5 7,96 7,96 3,79 6,383 5,476 36,59 537, 5,796 46,73 7,48 7,48 46,798,5 4, ,79,785,785 34,4 8,934 4, , ,659 5,35 5,3 9,33 9,33 4,85 9,47 4,66 36,67,77,77 34,344 7,96 4, ,68 579,86 534,93 5,63 7,743 7,743 43,458 9,63 43,39 379,464,99,99 44,383 33,53 5, ,64 57,4 59,95 54,97 6,596 6,596 4,7 9,985 45, ,479 6,4 6,4 4,99 37,4 6, ,548 59,7 544,74 55,4 9,548 9, ,,389 45,987 38,66,933,933 46,346 4,67 6, ,44 6, ,6 57,4 33,444 33, ,339,45 47,6 39,78 5,597 5,597 47,757 4,5 6, ,66 66,3 578,73 55,86 33,688 33, ,885,99 5,3 396,79 3,79 3,79 47,588 43,538 6, , 65,86 6,76 55,96 37,54 37,54 48,45,7 5,49 47,869 7,878 7,878 49,46 4,5 7, , ,8 6,766 55,564 36,54 36,54 5,796 3, 54,66 435,34 6,89 6,89 55,54 47,74 7,73,743 38,9 7,78 647,48 58,4 39,83 39,83 5,36 3,3 58,859 44,45 36,94 36,94 53,6 44,4 8,658,99 34,83 Total Assets/Liabilities * 859, ,6 895,3 95, , ,56,,574,5,78,37,444,64,894,98,88,88,655,3,73 * Including provisions for bad and doubtful debts as well as interest in suspence. ANNUAL REPORT 7 6

64 Table (S - 3 Contd.) Aggregated Balance Sheet of Banks (In Millions of AEDs) End of Period 6 7 Item Dec. Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Liabilities Monetary Deposits Demand Deposits (L.C.) Bankers Drafts Quasi-Monetary Deposits Time Deposits (L.C.) Savings Deposits (L.C.) Commercial Prepayments (L.C.) Other Deposits (F.C.) Foreign Liabilities Net Due to Head Office and / or Branches Abroad Due to Other Banks Abroad Other Deposits (L.C. + F.C.) Provisions () Other Foreign Liabilities Government Deposits (L.C. + F.C.) Government Lending Funds () 98,8 96,367,85 79,74 59,374 8,5 5,578 96,37 77,688,53,94 49,484,79 5,38 93,68 6 3,849,876,973 8,478 58,45 8,43 6,73 97,7 83,54 8,84 7,877 5,78,5 5,5 93, ,94 5,58,395 85,53 65,867 9,375 6,937 93,74 89,64,34,498 49,5,66 5,394 9,66 6 3,387,5 3,336 3,38 73,649 9,6 6,98,77 97,866 7,88,3 54,3,6 5,383 89,7 6 8,469 5,87,598 34,889 8,6, 7,9 5,84 96,69,363 6,36 5,399,7 5,45 96, ,39 6,66 3,73 36,598 85,958,99 8,6,534 4,4 8,59 3,57 57,5,8 6,98, ,774 3,9,874 35,38 93,785,6 7,574,348 7,764 4,65 35,96 59,38,5 6,99,46 6 8,54 6,4,3 33,55 96,87,87 7,68 6,8 38,636 8,934 46,73 63,85,7 8,59 98,48 6 6,66 4,4, ,6,55, 7,855 7,499 5,3,653 59,7 6,3,86 8,35 98, ,969 9,436 3, ,765 7,78,98 7,99,796 44,864,95 46,93 67,74,54 7,963 4, ,737 37,694 3,43 363,96 8,89,4 7,8 4,633 56,987,9 6,68 64,535,45 7,77 4,94 3 5,9 47,6 3,974 37,889 4,76 3,4 8,99 99,844 34,9 35,94 89,93 7,396,54 6,773, ,7 5,7 3, 384,38 59,374 4,654 9,3 9,7 3,97 44,476 9,33 64,684 89,688 4,579 6 ) Provisions for bad and doubtful debts as well as interest in suspence. ) Refinancing for Construction Through the Government of Abu Dhabi. 6 ANNUAL REPORT 7

65 Table (S - 3 Contd.) Aggregated Balance Sheet of Banks (In Millions of AEDs) End of Period 6 7 Item Dec. Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Due to Central Bank 68 4,48 95, , ,45 53,85 94 Capital & Reserves 4,89 7,49 8,9,98,59 5,586 7,4 6,83 8,67,636 4,99 7,346 3,88 Due to Resident Banks Money at Call & Short Notice Demand Deposits Time Deposits 38,397, ,88 37,477,6 5 34,365 4,47 3,473,87 37,9 4,75, ,399 37,8, ,5 4,358, ,6 39,784, ,53 4,97 3, ,9 4,746,5,948 36,98 4,64 3,5,78 35,656 39,84,893,7 35,93 39,887,835,646 35,46 46,6,8,55 4,763 Unclassified Liabilities Inter-Branch Transactions Provisions * Other Liabilities 68,8 5 33,83 34,69 67, ,5 33,985 68, ,87 35,448 69,4 7 33,3 36,5 68, ,39 34,36 79, ,69 46,4 59, 4 9,696 39,74 58,4 89,3 38,9 6,84 43,7 4,499 64, ,996 44,89 67,649 34,33 47,9 68,7 463,3 47,334 7,746 37,788 49,586 Memoranda Accounts Letters of Credit Guarantees & Other Endorsements Acceptances Forward Exchange Contracts Other Memoranda Accounts 95,3 79,8 94,43 4,74 34,43 3, ,3 78,73 97,869 4, ,79 37,576 98, 78,4 99,6 7,97 364,653 3,5,74,78 8,98 8,97 4,57 365,59 44,7,,77 85,848 3,784 4,93 447,3 339,98,8,46 79,638 6,878 4, ,953 36,95,,466 9,8 3,456 5,84 445,38 35,,46, 9,63 35,469 6,666 59,9 38,5,7,3 94,335 4,397 6,963 56,533 4,93,376,8 99,6 44,67 7, 6, ,538,394,465 98,59 44,44 6, , ,758,497,579 8,77 48,545,3 64,676 55,464,46,6,86 5,4 8,7 569,87 465,8 * Provisions for bad and doubtful debts as well as interest in suspence. ANNUAL REPORT 7 63

66 Table (S - 4) Monetary Survey (In Millions of AEDs) End of Period 6 7 Item Dec. Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Net Foreign Assets Foreign Assets Foreign Liabilities 55, ,64 78,98 54,45 339,4 84,554 59,9 349,98 9,899 6,46 359,4 99,96 74,838 37,839 98, 77, 39,659 5,457 78,87 397,97 9, 48,4 388,3 39,99 36, 397,9 6,9 5,975 49,7 57,3 57,44 49,47 6,3 69, ,647 36,7 6,36 48,8 3,495 Net Domestic Assets Net Claims on Government Claims on Official Entities Claims on Private Sector Claims on Nonbank Financial Institutions Capital and Reserves Other Items (net) 43,659 5,88 33, 385,789 3,36 5,649 49,963 5,539 5,89 7,95 4,476 3,9 8,69 49,336 55,856 48,5 8, 46,755 3,5 9,779 5,94 78,74 48,86 9,74 46,88 38,6,758 45,63 8,76 5,89 3,54 4,874 35,56 3,79 44,37 9,567 5,76 3,4 444,563 4,8 7,46 56,546 97,8 6,6 3,89 434,55 4,79 8,6 3, ,996 44,388 33,9 45,57 4,7 8,39 6,96 35,869 4,8 37,996 46,69 44,44,93 9, 354,967 49,3 38,49 473,433 47,749 3,96 3,7 37,554 5,533 4, ,95 48,6 5,659 36,863 38,368 64,89 4,75 5,76 46,8 8,96 34,67 45,376 6,38 45,385 53,79 55,8 3,44 3,85 Broad Money (M) 399,93 44,989 44, , 456,4 468, , ,38 488,69 56,94 58, , ,7 Money Supply (M) Currency Outside Banks Monetary Deposits,9,837 98,8 4,5,66 3,849 9,6,698 7,94 35,9,55 3,387 4,5,656 8,469 5,7,93 9,39 5,4 3,67 6,774 5,587 3,45 8,54 49,458,796 6,66 57,77 4,8 3,969 65,698 4,96 4,737 76,855 5,665 5,9 8,664 5,94 55,7 Quasi - Money Foreign Currency Deposits Dirham Deposits 79,74 96,37 8,967 8,478 97,7 83,48 84,53 93,74 9,79 3,38,77,4 34,889 5,84 9,49 36,598,534 5,64 35,38,348,98 33,55 6,8 5, ,6 7,499 3, 349,765,796 36, ,96 4,633 48,663 37,889 99,844 73,45 384,38 9,7 93,3 * Including Deposits of UAE Residents Booked in Overseas Branches (Including off-shore units) and Subsidiaries of National Banks abroad. 64 ANNUAL REPORT 7

67 Table (S - 5) Money Supply Year Month Issued 6 December 6,83 7 January February March April May June July August September October November December 4,49 5,558 6,695 6,85 7,3 7,93 7,6 7,499 9,4 9,987 3,664 3,67 ) Including Private Demand Deposits of Residents in AED and Bankers Drafts. ) M plus Quasi-Monetary Deposits. 3) M plus Government Deposits in AED and Foreign Currencies. Money Supply (M) Currency With Banks With Public Monetary Deposits 4,995,837 98,8 3,757 3,86 4,8 4,94 4,98 4,663 4,555 4,73 4,83 5,6 4,999 5,79,66,698,55,656,93 3,67 3,45,796 4,8 4,96 5,665 5,94 3,849 7,94 3,387 8,469 9,39 6,774 8,54 6,66 3,969 4,737 5,9 55,7 (In Millions of AEDs) (M) Broad Money (M) Overall Broad Money 3 (M3),9 399,93 53,985 4,5 9,6 35,9 4,5 5,7 5,4 5,587 49,458 57,77 65,698 76,855 8,664 44,989 44, , 456,4 468, , ,38 488,69 56,94 58, , ,7 5,6 59, ,67 564, , 6,9 594, ,586 63,4 645, , 696,8 ANNUAL REPORT 7 65

68 Table (S - 6) Currency Notes Issued by Denominations * (In Thousands of AEDs) Year Month Total Five Dirham Ten Dirham Twenty Dirham Fifty Dirham One Hundred Dirham Two Hundred Dirham Five Hundred Dirham One Thousand Dirham Total Total Total Total Total Total Total Total 6 December 6,48,85 7,77 49,493 77,55 54,99 3,76,33 6,635 3,996,9 7,88,58 7 January February March April May June July August September October November December 4,3,57 5,5,46 6,84,644 6,435,75 6,8,869 7,5,6 7,77,794 7,7,83 8,63,76 9,544,83 3,5,95 3,5,65,965 8,358 8,583,6 3,6,3 8,9 9,48 3,9 6,95 53,83 8,4 46,49 44,74 46,854 45,346 43,96 433,65 434,646 44,5 46,3 49,46 484,4 53,38 6,5 64,676 75,57 87,8 85,7 8,848 78,83 77,656 84,47 84,7 8,499 78,66 476,5 48, ,69 499,54 5,46 53,666 53,644 59,74 556, ,98 573,5 63,5 3,5,8 3,8,3 3,46,68 3,436,75 3,496,46 3,56,3 3,485,36 3,533,47 3,746,8 3,887, 3,95,96 4,39,59,7 5,797,4 95,9 9,79 89,55 85,54 8,5 79,45 77,69 75,88 7,88,357,595,883,384 3,59,473 3,67,56 4,8,37 4,5,77 4,56,79 4,8,668 4,738,58 5,56,45 5,43,86 5,786,35 7,3,965 7,585,3 7,88,5 7,983,89 7,883,6 8,6,557 8,5,357 7,979,986 8,6,3 9,,9 9,39,84 9,6,5 * Excluding Mutilated Notes. 66 ANNUAL REPORT 7

69 Year Month Total 6 December 43,5 7 January February March April May June July August September October November December 45,49 47,59 4,6 44,87 46,845 48,79 4,44 46, ,87 44, , ,59 * Excluding Gold Coins Issued. Table (S - 7) Currency Coins Issued by Denominations * One Fils Five Fils Ten Fils Twentyfive Fils Fifty Fils One Dirham Total Total Total Total Total Total 8,584 3,45 6,876 56,35 39,84 8,59 3,47 7,4 56,99 3,89 8,598 3,49 7,36 57,7 3,448 8,599 3,498 7,46 57,56 34,393 8,6 3,56 7,69 57,936 37,96 8,68 3,55 7,835 58,78 39,988 8,6 3,563 7,96 58,57 3,495 8,68 3,593 8,47 58,949 34,59 8,634 3,64 8,33 59,6 38,59 8,643 3,645 8,587 59,6 336,73 8,656 3,686 8,87 6,53 34,389 8,656 3,686 9,64 6, ,65 8,66 3,76 9,574 6,46 35,554 (In Thousands of AEDs) Five Dirham Twenty- Five Dirham Silver Coins Fifty Dirham Silver Coins Total Total Total,4 4,37,4 4,46,4 4,6,43 4,68,43 4,9,43 4,3,43 4,,44 4,6,44 4,9,44 4,48,45 4,4,45 4,446,46 4,476 ANNUAL REPORT 7 67

70 Table (S - 8) DMB s Foreign Assets and Liabilities (In Millions of AEDs) End of Period 6 7 Item Dec. Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Foreign Assets 3,938 33,44 38,35 9,967 5,894 34,939 37,756 3,866 35,75 9,65 3,99 95,88 96,896 Notes and Coins Due From H.O. & Branches Money at Call & Short Notice Deposits with Banks Securities Loans and Advances Other Foreign Assets 3 4 8,4 3,57 86,934 56,638 63,64 3, ,6,697 84,687 57,4 6,79 3, ,83 6,36 75,77 56,65 59,64 3,56 9,5 5,46 87, 58,54 64,57 3,5,39 5,4 67,9 6,45 65,74 3,833 6,694 9, 76,87 67,9 67,63 4,9 93 4,5 6,35 75,6 69,69 68,4 3,95 6,948 4,6 6,63 7,68 68,6 4, ,384 4,33 68,945 7,38 63,593 4,36 3 7,38 6,563 63,86 7,45 66,643 4,37 3 6,56 4,938 58,369 7,845 66,3 4,87 3 5,4 4,988 5,55 67,69 6,598 4,57 6 4,74 7,6 5,66 57,795 7,599 4,4 Foreign Liabilities 77,688 83,54 89,64 97,866 96,69 4,4 7,764 38,636 5,3 44,864 56,987 34,9 3,97 Due To H.O. & Branches Due To Banks Deposits of Banks Other Deposits Other Foreign Liabilities 4,53 4,39 96,785 49,4 6,877 8,84 5,9,964 49,98 6,646,34 5, 7,77 49,59 6,83 7,88 4,33 5,773 53,86 6,758,363 7,47 8,955 5,67 6,899 8,59 7,68,9 57,63 8,84 4,65 4,84 3,74 58,79 8,444 8,934 6,6 4,598 63,66 9,35,653 5,576 53,53 6,846 9,695,95 6,6 4,66 67,49 9,93,9 4,75 57,9 64,6 9,9 35,94 4,386 84,97 68,994,699 44,476 3,6 5,684 64,349,84 ) Demand and Time Deposits. 3) Including Fixed Assets, Cheques in the Course of Collection on Non-resident Banks and Other Assets. ) Including Purchased or Discounted Commercial Bills. 4) Including Commercial Prepayments. 68 ANNUAL REPORT 7

71 Year Month 6 December 7 January February March April May June July August September October November December * Excluding Inter-Bank Lending. Table (S - 9) Bank Credit (Gross) to Residents and Non-Residents * Total Bank Credit to Residents and Non- Residents Loans, Advances and Overdrafts Residents Real Estate Mortgage Loans Commercial Bills Loans, Advances and Overdrafts 537,45 433,63 3,6 9,5 54,88 543,345 44,766 3,883 9,57 5, ,634 44, 38,359 9,5 5,8 567,3 45,76 4,864,5 54, ,388 46,677 4,66 9,47 55,899 6,534 48,99 43,39 9,63 57, ,66 474,89 45,653 9,985 58,353 6,85 488,348 45,987,389 58,7 68, 56,988 47,6,45 53,33 645,358 56,6 5,3,99 56, , ,4 5,49,7 56, 68, ,5 54,66 3, 5,89 78,8 575,3 58,859 3,3 6,66 (In Millions of AEDs) Non-Residents Real Estate Mortgage Loans Commercial Bills Discounted 479 8, , , , , , , 67 9,39 7 9, ,7 79 9, , ,486 ANNUAL REPORT 7 69

72 Table (S - ) Bank Credit (Gross) to Residents by Economic Activity (In Millions of AEDs) End of Period 6 7 Economic Activity ) Agriculture ) Mining & Quarrying 3) Manufacturing 3. Food, Beverages & Tobacco 3. Textiles & Leather Products 3.3 Furniture & Other Wood Products 3.4 Paper & Paper Products 3.5 Chemicals & Chemicals Products, Petroleum & Petro-Chemicals 3.6 Basic Metal Prod. (incl Aluminium) 3.7 Fabricated Metal Products, Machinery and Equipment 3.8 Other Manufacturing 4) Electricity, Gas and Water 5) Construction 6) Trade 6. Wholesale 6. Retail 7) Transport, Storage & Communication 8) Financial Institutions (Excl. Banks) 9) Government ) Personal Loans for Business purposes ) Personal Loans for Consumption purposes ) All Others Dec. Mar. June Sep. Dec.,43 5,8 4,6,468, ,978 4,9,373 9,493,9 54,344 9,637 6,3 3,66 9,46 8,594 47,885 87,979 3,57 79,483 3,59 5,38 6,547,854,35 88,5 3,77 4,474,36,46 8,89 59,5 3,65 7,7 3,554,59,84 46,73 94,853 3,95 79,5,38 4,398 9,557 3,7, ,49 5,86,635,63 9,388 6,7 9,3 59,933 3,389, 6,4 54,97,558 36,798 94,4, 4,6 3,7 3,356, ,395 5,68,573,398 3, 63,89 97,85 63,63 33,9,44 3,79 55,86 5,358 4,8,8,664 8,67 34,4 3,34, ,458 6,496,855 4,675,536 68,47 6,9 7,3 34,6,987 36,94 58,4,343 43,457 45,436 Total 474,6 5,796 59,96 578,74 647,48 ) Amount Outstanding Excluding Inter-Bank Lending. ) Including Loans to Services and Non-Profit Institutions. 7 ANNUAL REPORT 7

73 Table (S - ) Loans, Advances and Overdrafts (Gross) to Residents by Sectors (In Millions of AEDs) Year Month Government Financial Institutions Business & Industrial Enterprises Other Sectors 3 Total 6 December 47,885 8,594 44,37 3,7 433,63 7 January 48,687 7,435 5,9 3,55 44,766 February 49,678 7,96 48,9 6,9 44, March 46,73,785 54,73 7,459 45,76 April 5,3,77 6,66 8,864 46,677 May 5,63,99 7,47 35,79 48,99 June 54,97 6,4 53,946 39,3 474,89 July 55,4,933 7,6 4, ,348 August 57,4 5,597 79,744 44,47 56,988 September 55,86 3,79 83,399 47,8 56,6 October 55,96 7,878 97,46 57, ,4 November 55,564 6,89 38,989 6,66 554,5 December 58,4 36,94 3,665 59,33 575,3 ) Excluding Inter-Bank Lending. ) Including Public and Private Sectors. 3) Including Personal Loans for Business and Consumption Purposes. ANNUAL REPORT 7 7

74 Table (S - ) Deposits by Ownership * (In Millions of AEDs) End of Period 6 7 Item Dec. Mar. June Sep. Dec. ) Residents 469,3 5,476 56, ,789 65,338. Government. Public Sector.. Financial Institutions.. Business & Industrial Inst..3 Private Sector.3. Financial Institutions.3. Business & Industrial Inst..4 Individuals.5 Others 93,68 38,4 3,5 35,9 76,46 3,393 6,653 4,3 9,33 89,7 4,5,89 38,43 93,9 4,48 79,49 55,8,5,46 4,59 4,8 37,5 7,984 4,9 3,694 69,93,55 4,589 39,6 3,549 36,7 35,673 7,556 8,7 77,85 6,6 4,579 36,96 4,89 3,377 7,4, 5,4,78 5,54 ) Non-Residents 49,484 54,3 59,38 67,75 64,683. Government & Diplomatic Missions. Financial Institutions.3 Business & Industrial Inst..4 Individuals & Others 3,3 8,63 5,7,83 4,345 7,53 4,999 7,58 4,868 8,43 7,388 8,539 4,64 3,83 8,354 3,877 6,57 4,89 8,78 5,557 Total Deposits 58,86 555,68 6,69 65,494 76, * Excluding Inter-Bank Deposits and Bank Drafts, but Including Commercial Prepayments. 7 ANNUAL REPORT 7

75 Table (S 3) List of National Banks & Their Branches (As at 3//7) NATIONAL BANKS Abu Dhabi Dubai Sharjah Ras-Al Khaimah Ajman Umm-Al Qaiwain National Bank of Abu Dhabi Abu Dhabi Commercial Bank 3 Arab Bank For Investment & Foreign Trade 4 Union National Bank 5 The National Bank of Dubai 6 Commercial Bank of Dubai 7 Dubai Islamic Bank 8 Emirates Bank International 9 Emirates Islamic Bank Mashreq Bank Sharjah Islamic Bank Bank of Sharjah 3 United Arab Bank 4 Invest Bank 5 The National Bank of Ras-Al Khaimah 6 Commercial Bank International 7 National Bank of Fujairah 8 National Bank of Umm-Al Qaiwain 9 First Gulf Bank Abu Dhabi Islamic Bank Dubai Bank Noor Al Islam Bank * * * * 4 * * TOTAL * Including Automated Branch/Customers Service Unit. Al- Fujairah 4 4 Total Pay Offices Grand Total ANNUAL REPORT 7 73

76 ANNUAL REPORT Table (S 4) List of Foreign Banks & Their Branches (As at 3//7) National Bank of Bahrain (BSC) Rafidain Bank 3 Arab Bank (PLC) 4 Banque Du Caire 5 El Nillien Bank 6 National Bank of Oman Limited (S.A.O.G.) 7 Calyon-Corporate and Investment Bank 8 Bank of Baroda 9 BNP Paribas Janata Bank HSBC Bank Middle East Arab African International Bank 3 Banque Libanaise Pour Le Commerce (France) S.A. 4 Al Ahli Bank of Kuwait (K.S.C.) 5 Barclays Bank (PLC) 6 Habib Bank Limited 7 Habib Bank AG Zurich 8 Standard Chartered Bank 9 CitiBank N.A. Bank Saderat Iran Bank Melli Iran Blom Bank France 3 Lloyds TSB Bank PLC 4 ABN Amro Bank N.V. 5 United Bank Limited 6 Doha Bank 7 Samba Financial Group TOTAL Customer Serv. Lice Total Al- Fujairah Umm-Al Qaiwain Ajman Ras-Al Khaimah Sharjah Dubai Abu Dhabi FOREIGN BANKS * Temporary Branch ** Including one cash office in Dubai.

77 Table (S 5) List of Specialized Banks, Investment Institutions, Finance Companies and Representative Offices (As at 3//7) Investment Banks. Arab Emirates Investment Bank Ltd. - P.J.S.C.. HSBC Financial Services (Middle East) Ltd. Specialized Banks. Emirates Industrial Bank. Dubai First (P.P.C.). Aseel Finance Aseel (P.P.C.) 3. Mawarid Finance (P.P.C.) 4. Al Watani Al Islami (P.P.C.) 5. Abu Dhabi National Islamic Finance 6. Reem Finance - PJSC 5. U.B.S. AG (Abu Dhabi) 6. Arab Banking Corporation (B.S.C.) (Abu Dhabi) 7. The Bank of New York (Abu Dhabi) 8. Deutshe Bank AG (Abu Dhabi) 9. Housing Bank for Trade & Finance (Abu Dhabi). Hypoveroinsbank AG. (Abu Dhabi). Real Estate Bank Finance Companies. Osool - A Finance Company L.L.C. Development Institutions. Abu Dhabi Fund for Development. U.A.E. Development Bank. Bank Al Falah Limited (Abu Dhabi). Liechtensteinische Land Bank (Switzerland) Ltd. (Abu Dhabi) 3. Byblos Bank S.A.L. (Abu Dhabi) 4.. BHF Bank Aktiengesellsehaft (Abu Dhabi). Gulf Finance Corporation 3. HSBC Finance Co. (Pv.J.S.C.) 4. Amlak for Finance (Pv.J.S.C.) 5. Tamweel L.L.C. Investment Institutions. Abu Dhabi Investment Authority. Abu Dhabi Investment Company 5. Bank Audi SAL, Audi Saradar Group (Abu Dhabi) 6. Bank Julius Bear & Co. Ltd. (Dubai) 7. Union Bank of India (Dubai) 8. The Royal Bank of Scotland (Dubai) 6. Maf Orix Finance - PJSC 7. Finance House - PJSC 8. Al Wifaq Finance Company (P.P.C.) 9. Al Badre Islamic Finance Co. (P.P.C.). Islamic Finance Company (P.P.C.) Representative Offices. BNP Paribas (Abu Dhabi). Credit Suisse Bank (Abu Dhabi) 3. The Bank of Tokyo - Mitsubishi Ltd. (Abu Dhabi) 4. Gulf International Bank (B.S.C.) (Abu Dhabi) 9. Rothschild Europe B.V. (Dubai). Credit Agricote Asset Management (Dubai). American Express Bank Ltd. (Dubai). Dresdner Bank AG. (Dubai) 3. Merrill Lynch Bank (Suisse) S.A. (Dubai) ANNUAL REPORT 7 75

78 Table (S 5 Contd.) List of Specialized Banks, Investment Institutions, Finance Companies and Representative Offices (As at 3//7) 4. Philippine National Bank (Dubai) 4. HSBC Bank International Ltd. (Dubai) 58. Andra Bank (Dubai) 5. Clear Stream Banking S.A. (Dubai) 4. Fidelity Investments International (Dubai) 59. Arner Bank Ltd. (Dubai) 6. Bank of America -National Association (Dubai) 43. Wachovia Bank National Association (Dubai) 6. Bank Julius Bear and Co. Ltd. (Dubai) 7. Bank of Bahrain and Kuwait (B.S.C.) (Dubai) 44. West LB A.G. (Dubai) 6. BNP Paribas (Swisse) SA (Dubai) 8. Union de Banques Arabes et Françiases (Dubai) 45. Kotak Mahindra International Ltd. (Dubai) 6. National Bank of Egypt (Dubai) 9. Bank Muscat (S.A.O.G.) (Dubai) 46. HDFC Bank Ltd. (Dubai) 63. First Rand Bank Ltd. (Dubai) 3. Nationwide International (Ltd.) (Dubai) 47. Deutche Bank AG. (Dubai) 64. Ashburton (Jersy) Bank Ltd. (Dubai) 3. Société Générale Bank (Dubai) 48. Bank of Beirut SAL (Dubai) 65. RMB Investment Services (Guernsey) (Dubai) 3. Standard Bank Plc (Dubai) 49. UTI International Ltd. (UTIL) (Dubai) 66. Sanpaolo IMI S.P.A. (Dubai) 33. State Street Bank & Trust Company (Dubai) 5. Citigroup Global Markets Inc. (Dubai) 67. Commercial International Bank (Egypt) S.A.E. (Dubai) 34. Natexis Banque - Pupulaires (Dubai) 5. Korea Exchange Bank (Dubai) 68. The Hongkong & Shanghai Banking Corp. Ltd. (Dubai) 35. Union Bancaire Priveé (CBI-TDB) (Dubai) 5. ICICI Bank Limited (Dubai) 69. Diamond Bank (Swizerland) Ltd. (Dubai) 36. Man Investments Ltd. (Dubai) 53. IndusInd Bank Limited (Dubai) 7. Lombard Odier Darier Hents & Cie (Dubai) 37. Coutts & Co. (Dubai) 54. Doha Bank (Dubai) 7. Bank Turan (Dubai) 38. Towry Law (Asia) HK (Ltd.) (Dubai) 55. Punjab National Bank (Dubai) 7. Pictet & Cie Banqiries (Dubai) 39. Royal Bank of Canada (Dubai) 56. BNP Paribas Private Bank (Switzerland) SA (Dubai) 73. M. C. B. Bank Ltd. (Dubai) 4. ING Asia Private Bank Limited (Dubai) 57. ABN - Amro Asset Management (Dubai) 74. Banque Piguet & Cie S. A. (Dubai) 76 ANNUAL REPORT 7

79 Table (S 6) List of Licensed Financial and Monetary Intermediaries (As at 3//7) Brokers in the Sale and Purchase of Currencies, Commodities and Intermediaries in Money Market Operations. Royal Index (L.L.C.). Leader Middle East (L.L.C.) 3. Century Financial Brokers (L.L.C.) 4. Sterling Financial Brokers 5. Orient Financial Brokers 6. Eastern Trust (L.L.C.) Dubai Dubai Dubai Dubai Dubai Dubai Brokers in Dealing in Local Shares, Currencies and Commodities as well as in Money Market Operations. Forex International (L.L.C.) Abu Dhabi Dubai Brokers in Dealing in all Financial and Monetary Operations. Abu Dhabi Financial Services Co. (L.L.C.). International Financial Services 3. National Financial Services (L.L.C.) 4. Wifco Financial Brokerage (L.L.C.) 5. Swiss Precious Metals & Commodities 6. National Bank of Fujairah NBF Securities (L.L.C.) 7. Al Ahlia Financial Brokers 8. Dubai Tadawul (L.L.C.) 9. Sharjah Islamic Financial Services Abu Dhabi Abu Dhabi Dubai Dubai Dubai Dubai Dubai Dubai Sharjah ANNUAL REPORT 7 77

80 Table (S 7) List of Licensed Moneychangers, Financial Investment Companies & Banking, Financial and Investment Consultation Establishment and Companies (As at 3//7) Moneychangers EMIRATES Abu Dhabi Dubai Sharjah Ajman Umm Quwain Ras Al-Khaimah Fujairah Al Ain City Khorfakan City Total Head Office 65 5 Financial Investment Companies Commercial Name. Oman & Emirates Investment Holding Company (S.A.O.G.). The National Investor (P.J.S.C.) 3. Abu Dhabi Investment House - PJS 4. Noor Capital P.S.C. 5. Injaz Mena Investment Company P.S.C. 6. Unifund Capital Financial Investment 5 Branches Total Abu Dhabi Abu Dhabi Abu Dhabi Abu Dhabi Abu Dhabi Abu Dhabi Financial Investment Companies Commercial Name 7. Allied Investment Partners - P.P. Co. 8. Gulf Capital - P.P. Co. 9. Al Mal Capitals P.S.C.. Merrill Lynch International & Co. C.V. (Netherlands Antille Islands). Emirates Financial Services (P.J.S.C.). Shuaa Capital (P.S.C.) 3. Islamic Investment Company (P.J.S.C.) 4. National Bonds Corporation (P.S.C.) 5. Daman Investments - P.P. Co. Banking, Financial and Investment Consultation Establishments and Companies Commercial Name. Synergy Financial (L.L.C.). Elfina Financial Investment Consultancy 3. Landmark International Consulting Services 4. Professional Investment Consultants Co. (L.L.C.) 5. Regent Investment Consultants (L.L.C.) 6. Financial Consultancy Services Company - Partnership 7. Network Corporate Services (L.L.C.) 8. Mondial (Dubai) L.L.C. 9. Invest One Financial Advisory Est.. Continental Financial Services. Acuma. Union National Financial Consultancy (L.L.C.) Head Office Abu Dhabi Abu Dhabi Dubai Dubai Dubai Dubai Dubai Dubai Dubai Head Office Abu Dhabi Dubai Dubai Dubai Dubai Dubai Dubai Dubai Dubai Dubai Dubai Dubai 78 ANNUAL REPORT 7

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