1. Banks and banking issues in the UAE CH 9

2. Banks and banking issues in the UAE Introduction Financial Institutions: An establishment that focuses on dealing with financial transactions, such as investments, loans and deposits. Conventionally, financial institutions are composed of organizations such as banks, trust companies, insurance companies and investment dealers.

3. Banks and banking issues in the UAE IntroductionBank: A financial institution licensed as a receiver of deposits. There are two types of banks: commercial/retail banks and investment banks. In most countries, banks are regulated by the national government or central bank

4. Banks and banking issues in the UAE Introduction Bank : Commercial banks are mainly concerned with managing withdrawals and deposits as well as supplying short- term loans to individuals and small businesses. Consumers primarily use these banks for basic checking and savings accounts, credit cards, certificates of deposit and sometimes for home mortgages. Investment banks focus on providing services such as underwriting.

5. Banks and banking issues in the UAE Banking regulations in the UAE The UAE Central Bank is primarily responsible for overseeing banks in the UAE, except in the Dubai International Financial Centre (DIFC), where the regulatory authority is the Dubai Financial Services Authority (DFSA). Source: UAE Central Bank

6. Banks and banking issues in the UAE Banking regulations in the UAE Banks are supervised by the UAE Central Bank through the various reports that are required to be filed by banks with the UAE Central Bank on a periodic basis. Under the Banking Law, the UAE Central Bank is entitled to inspect the books, records and accounts of any bank at its discretion. In certain cases, the Central Bank has appointed administrators or representatives to temporarily manage a bank. These audits are ordinarily conducted once a year and are reasonably extensive. Source: UAE Banks Federation

7. Banks and banking issues in the UAE Banking regulations in the UAE Under the Companies Law at least 51 per cent of any company incorporated in the UAE (outside free zones) must be owned by UAE nationals or entities wholly owned by UAE nationals. For financial and monetary intermediaries and finance companies, at least 60 per cent of the shares must be held by UAE nationals or entities wholly owned by UAE nationals. Source: UAE Banks Federation

8. Banks and banking issues in the UAE Banking regulations in the UAE Commercial banks in the UAE are incorporated as public joint-stock companies or as branches of foreign banks. Investment banks and other financial institutions may be incorporated as public joint-stock companies or private joint-stock companies or as branches of foreign investment banks and financial institutions. Source: UAE Banks Federation

9. Banks and banking issues in the UAE Banking regulations in the UAE A change in ownership or control of a bank is a relatively rare phenomenon in the UAE. A majority of the locally incorporated banks are owned by the governments or the ruling families of the relevant emirates in which they are based. Source: UAE Banks Federation

10. Banks and banking issues in the UAE Banking regulations in the UAE UAE Banks Federation (UBF) established in 1982 under the name (Emirates Banks Associations). A professional representative body of the member banks operating in the UAE. It advocates the banks interests, and enhances cooperation and coordination among them so as to upgrade the banking industry for the benefit of the banking sector and national economy. Source: UAE Banks Federation

11. Banks and banking issues in the UAE Banking regulations in the UAE UAE Banks Federation (UBF) has an Advisory Council of Chief Executive Officers, consisting of the CEOs of the national banks in addition to the largest foreign banks. The council oversees the implementation of the policies, follows up on UBF’s activities and makes the necessary decisions on all issues of concern to the banking sector. Members of UBF has reached 51 Banks by 2012 Source: UAE Banks Federation

12. 1.Abu Dhabi Commercial Bank (P.L.C.) 2.Abu Dhabi Islamic Bank ( P.L.C.) 3.Ajman Bank 4.Al-Hilal Bank 5.Arab Bank For Investment & Foreign Trade (Al Masraf ) 6.Bank Of Sharjah (P.L.C.) 7.Commercial Bank International (P.L.C.) 8.Commercial Bank of Dubai (P.S.C.) 9.Dubai Bank 10.Dubai Islamic Bank (P.J.S.C.) 11.Emirates Investment Bank 12.Emirates Islamic Bank ((P.L.C.) 13.Emirates NBD (P.J.S.C.) 14.First Gulf Bank ( P.L.C.) 15.Invest Bank (P.L.C.) 16.Mashreq Bank (P.L.C.) 17.National Bank Of Abu Dhabi (P.L.C.) 18.National Bank Of Fujairah (P.S.C.) 19.National Bank Of Umm-Al Qaiwain (P.L.C.) 20.Noor Islamic Bank 21.RAK Bank (National Bank Of Ras Al-Khaimah P.S.C.) 22.Sharjah Islamic Bank (P.L.C.) 23.Union National Bank (P.L.C.) 24. United Arab Bank (P.L.C.) National Banks 24

13. 1.Al Ahli Bank Of Kuwait ( K.S.C.) 2.Al Khaliji (France)S.A. 3.Arab African International Bank 4.Arab Bank (P.L.C.) 5.Bank Melli Iran 6.Bank of Baroda 7. Bank Saderat Iran 8.Bank-Audi SAL- Audi Saradar Group 9.Banque Misr 10.Barclays Bank 11.BLOM Bank France 12.BNP Paribas 13.Citibank N.A 14.Credit Agricole Corporate & Investment Bank 15.Deutsche Bank 16.Doha Bank 17.Habib Bank AG. Zurich 18.Habib Bank Limited 19.HSBC Bank Middle East 20.Industrial and Commercial Bank of China 21.Lloyds TSB Bank 22.National Bank Of Bahrain 23.National Bank of Oman 24.Royal Bank of Scotland N.V 25.SAMBA Financial Group 26.Standard Chartered Bank 27.United Bank Limited International Banks 27

14. Banks and banking issues in the UAE National Banks’ Performance in the UAE Total assets remarkably grew by approximately 8% to AED 1,791 billion in 2012. The UAE banking sector is reportedly considered the largest Arab banking sector in terms of assets as it accounts for about 31% of the total volume of banking sector in the GCC region and about 20% of the gross volume of the Arab banking sector as of 31/12/2012. Source: UAE Banks Federation

15. Deposits Source: UAE Banks Federation Numbers in Billions

16. Assets Source: UAE Banks Federation

17. Assets Source: UAE Banks Federation Numbers in Billions

18. Assets Source: UAE Banks Federation

19. Deposits Source: UAE Banks Federation

20. Loans Source: UAE Banks Federation Numbers in Billions

21. Loans Source: UAE Banks Federation

22. Banks and banking issues in the UAE Development of the Banking System in the UAE: According to Central Bank statistics, the number of national banks remained 23 by the end of 2012. However, their branches rose up to 805 in 2012, compared to 768 branches in 2011. Meanwhile, the branches of the 28 foreign banks operating in the local market rose to 83 by the end of 2012. Total number of all banks and their branches reached 1,111 (945 national + 166 foreign), including exchange offices and electronic banking service units. The number of ATMs linked to UAESWITCH in the State amounted to 4,492 by the end of December 2012, compared to 4,172 ATMs at the end of December 2011. Moreover, the number of debit and credit cards increased to AED 10.4 million at the end of 2012, compared to 10,1 in 2011 reflecting an increase of 296 new cards (+2.3%). Source: UAE Central Bank

23. Banks and banking issues in the UAE Regional and international Ranking of the UAE Banks: According to "The Banker" issued in July 2012, the number of UAE banks on the list of Top 1000 World Banks was 19 banks, and seven UAE banks ranked among the Top 25 Middle East Banks in terms of Tier 1 capital base. Furthermore, UAE banks occupied 14 positions among the top 100 Arab banks in terms of assets, as stated in the list of Union of Arab Banks issued in June 2012. Fourteen UAE banks were listed among the 50 biggest Gulf banks in the report issued by "Arabian Business" magazine, in terms of the market capitalization of banks listed on the stock markets as at June 2012. (Above ranking is based on latest banks financial numbers as of 31/12/2011) Source: UAE Banks Federation