[Name]

[Date]

Middle East Banking Forum Jumeirah Beach Hotel, Dubai 26 November 2013

1

Giel-Jan (‘GJ’) M. Van Der Tol General Manager Wholesale Banking Emirates NBD

Agenda

2

GCC macro trends

Capital market developments

Future outlook

UAE overview

Source: FACT ME Hand Book

USD Bln

+62%

2011-20

4,780

2000-10

2,958

2020f

128

2015f

114

2012f

89

2010

78

2005

56

2020f

11,144

2015f

11,206

2012f

11,126

2010

10,593

2005

12,563

Oil Prices US$/Barrel1

Export Volumes, thousands barrels per day

Governments in the GCC continue to enjoy unprecedented levels of oil-driven revenues…

1 Average international oil prices

Oil revenues in the GCC are expected to be very strong in this decade … … mainly driven by rising oil prices …

… as volumes stabilize

3

ESTIMATES

…resulting in large oil-driven fiscal surpluses

SOURCE: EIU; WMM; team analysis

275

14

293

2015 13

256

12

236

11

216

10

85

09

16

08

228

07

116

06

125

05

104

04

48

03

14

02

-5

01

-5

2000

14

Bahrain

UAE Kuwait

Qatar Saudi Arabia

Oman Fiscal balance US$ bln

Note: Bahrain, Kuwait, and Oman data based directly on EIU projections; Qatar, Saudi Arabia, and UAE based on McKinsey regression analysis

▪  Cumulative 2011-2015 fiscal surplus of USD 1.3 trillion

▪  Saudi Arabia and UAE represent 80% of the total surplus moving forward

▪  USD 100/barrel oil projected

▪  +/-USD 20/barrel change in oil price leads to a +/- 25% change in projected surplus

4

… would lead to enhanced appetite to improve both hard and soft infrastructure

Which allows (most) governments to continue higher spending

8.3

4.8

5.8

0.2

5.6

9.2

1.5

0.1

6.9

21.3

19.2

-0.5 19.4

10.0

20.8

35.6 12.7

26.4 10.7

14.8 16.4

2013f 2012e 2011

Qatar

KSA

Oman

Kuwait

UAE

Bahrain

GCC avg.

(% YoY)

Continuous GCC Government Spending…

Source: Bloomberg, ENBD Research, McKinsey Study 2012 : Changing Banking Landscapes in the Gulf 5

500

1,050

Total Healthcare

2,950

Education Infra- structure

1,400

Announced investment for 2010 - 2015 US$ bln

Oil revenues continue to be the key drivers for GCC economies; however UAE’s reliance on oil is less compared to peers

6

48

8088

54

92

82

26

90

35

% of Exports % of GDP % of Govt. Revenue

Kuwait KSA UAE

Oil as a % of…

Source: Bloomberg, IMF REO April 2012

Regional Countries growth rates

Overall solid GDP growth is projected to continue in the GCC

GCC growth rate

4.9

5.9

7.46.8

0.1

2013f 2012e 2011 2010 2009

Real GDP growth rate (% YoY)

* Excluding Oman and Bahrain Source: ENBD Research, ENBD Global Markets and Treasury

3.9

3.9

1.9

5.7

5.5

8.5

3.4

4.4

6.0

8.3

6.8

6.2

4.2

4.4

3.0

5.0

5.2

13.0

2013f 2012e 2011

Qatar

KSA

Oman

Kuwait

UAE

Bahrain

Real GDP growth rate (% YoY)

7

Agenda

8

GCC macro trends

Capital market developments

Future outlook

UAE overview

9

Highlights

UAE’s GDP grew by 4.4% last year and is expected to grow going forward primarily driven by the oil sector

•  The UAE’s real GDP growth reached 4.4% in 2012 according to latest data from the National Bureau of Statistics

•  The main driver of growth last year was the oil sector, which expanded 6.3%; non-oil GDP grew 3.5%, up from 2.6% in 2011, driven mainly by service sector growth

•  The non-oil private sector continued to expand at a steady pace in Q3 2013, with the PMI reading for September coming in at 56.6; employment, staff costs and input prices continue to rise, but a competitive environment has meant output costs have been contained

•  4.4% growth is forecasted for 2013, on the back of higher than expected oil production year-to-date; Growth is also expected to be driven by the services sectors as real estate continues to recover, and tourism growth supports trade and associated sectors

•  Inflation has averaged under 1% in the year to August. The 2013 forecast for average CPI is 1.5% before rising to 3% in 2014

Oil production trends

Real GDP Growth Forecasts

UAE PMI – Private Sector Expansion Trends

Source: Bloomberg, Emirates NBD Research Source: HSBC, Markit

2008 2009 2010 2011 2012 2013F

2014F

UAE 3.2% (2.4%) 1.7% 3.9% 4.4% 4.4% 4.1%

UK (1.1%) (4.9%) 1.7% 1.1% 0.2% 1.0% 1.5%

Eurozone 0.4% (4.1%) 2.0% 1.6% (0.7%) (0.5%) 0.5%

India 8.2% 6.4% 4.0% 3.0% 0.7% 0.5% 1.8% US (0.3%) (3.5%) 2.5% 1.8% 2.8% 2.0% 3.0% China 9.6% 9.2% 10.4% 9.3% 7.8% 7.5% 7.0% Japan (1.1%) (6.3%) 4.7% (0.6%) 2.0% 2.0% 2.5%

Singapore 1.8% (0.9%) 14.9% 5.3% 1.3% 2.6% 3.6%

Hong Kong 2.1% (2.5%) 6.8% 4.9% 1.5% 3.0% 3.5% Source: Global Insight, Emirates NBD forecasts, Bloomberg

10

Highlights

UAE’s banking sector is the largest by assets in the GCC

Composition of UAE Banking Market (AED billion)

UAE Banking Sector Growth (AED billion)

GCC Banking Market

•  UAE Banking sector is the largest by assets in the GCC; sector is dominated by 23 local banks which account for more than 75% of banking assets; 28 foreign banks account for the remainder

•  In the past couple of years the Central Bank of the UAE has sought to play a stronger role in the oversight and governance of the Banking Sector in the UAE

•  This has resulted in a new regulatory regime with various regulations being considered covering areas such as liquidity risk, large exposures and mortgage caps (amongst others)

KSA

UAE(1)

Kuwait

Qatar

Bahrain(2)

Oman

Banking Assets USD billion

Assets % GDP(3)

Source: UAE Central Bank Statistics as at Jul 2013, ENBD data as of Q3 2013. Loans and Assets presented gross of impairment allowances

1) Includes Foreign Banks; 2) Excludes Foreign Banks; 3) GDP data is for FY 2013 forecasted. Oman, Bahrain, KSA as at Aug 2013, Kuwait, Qatar as at Sep 2013 and UAE as at Jul 2013 Source: UAE Central Bank; National Central Banks and Emirates NBD forecasts

11

Highlights

Bank loans and deposits have also grown; deposits have grown faster than loans; EIBOR has steadily declined

EIBOR – LIBOR spreads

Trends in CDS spreads

Bank deposit and loan growth

Source : Bloomberg Source : UAE Central Bank

•  Total bank loan growth (net of provisions) reached 6.4% y-o-y in July; while this is still well below regional peers, the data shows a steady improvement, particularly in the retail and personal loan segment

•  Deposit growth in the UAE still outpaces loan growth; bank deposits grew 12.4% y-o-y in July, and the cumulative increase in bank deposits year-to-July was AED85.3bn, compared with an AED45.2bn increase in deposits over the same period last year; consequently, the loans-to-deposit ratio was at 92.6%, near the lowest level in at least five years

•  3M EIBOR rate continued to ease as liquidity in the banking system improved. Dubai CDS remained near multi-year lows, reflecting confidence in the economic recovery and prospects for growth going forward

Source: Emirates NBD Research, Bloomberg

0

100

200

300

400

500

600

January-11 January-12 January-13

Abu Dhabi Dubai Saudi Arabia

UAE’s banking sector has benefited from the liquidity flowing in due to FDI and capital flow from the Arab spring

12

35

28

20

2013 2010 2011

+21% 1,270

1,1671,0691,050

2010 2011

+5%

2012 Sep-13

Foreign Direct Investment AED billion

UAE Bank Deposits AED billion

• Estimate suggests ~ USD 40 billion of deposits and short-term investments, moved to the Gulf from elsewhere in the Middle East in 2011

• According to a report by Invesco ~ 35% of the FDI to UAE is from MENA Source: UAE Central bank; Web search

As a result lending activities in UAE have picked up pace…

13

1,1781,0991,0711,031

2010 2011

+4%

2012 Sep-13

UAE Bank Loans & Advances AED billion

Source: UAE Central bank

…but in a controlled manner, being reflected in the Loans-to-Deposits ratio

14

98 100 94 93

1,050 1,069 1,168 1,279

1,099

2,457 2,267

1,178

2,140

2010 2011 2012

Loans

Deposit

Sep-13

1,031

2,081

1,071

X Loan-to-deposit ratio

Source: UAE Central bank; Analysis

Loans and deposits AED billion

In addition, capital strength of UAE banks has also grown stronger over the last few years

15

17.616.316.1

2010 2011 2012

+5% 21.020.820.8

+0.5%

2011 2012 2010

Tier 1 Capital Ratio %

Capital Adequacy Ratio %

Source: UAE Central bank

Agenda

16

Macro trends

Capital market developments

Future outlook

UAE Overview

Middle East Capital Market Summary

Summary

Source: Zawya Middle East here includes GCC countries, Turkey and Jordan

Equity Market

•  Equity capital market in the Middle East region is still in the developing stage

•  Lot of growth opportunities exist to provide funds for the development of infrastructure, banking & consumer sectors

•  Relaxation of foreign investor investment limits in the regional companies to attract foreign institutional investment is a key catalyst for the strong equity performance

•  Moreover, the inclusion of markets such as Qatar and UAE into the ‘emerging markets’ category indicates that the regional markets are gradually gaining maturity and consequently becoming more attractive to investors

Capital Market Issues for equity have picked up since 2011 and are primarily concentrated in Turkey, UAE and KSA

Split of Equity IPO Fund Raising – By Key Middle East Countries

2012 Issues - USD 28.3 bn

Source: Zawya, CapitalIQ

23%

10%

Kuwait

3%

Oman

3% Qatar

Saudi Arabia 14%

UAE

Turkey 47%

22%

7%

6%

Oman

3% Qatar

Saudi Arabia 8%

UAE

Turkey 54%

Kuwait

2013 YTD Issues - USD 20.5 bn

Equity Fund Raising in Middle East: IPO Funds Raised

3,122 3,635

6,6334,4583,141

3,149 5,307

2,825

6881,115

1,160

952

702

761

64483342 1,471

6,35827

14

274

1852,074

2012

28,310

2011

15,680

2010

20,692

2009

3,837

2008

23,864 67 826

7,326

2,159 3,644 1,402

2,089 1,565

11,120 4,165

2013 YTD

536 180

2,213

3,561 4,139

3,993

13,348

1,452 20,484

737 Bahrain Egypt Kuwait Oman Qatar Saudi Arabia UAE Turkey

Demand Drivers:

 Growth in infrastructure, real estate, retail and telecom sector driven by increase in consumer and government spending

  Relaxation of foreign ownership limits in regional firms to boost equity markets

  Inclusion of key regional indices in MSCI

  Stringent & conservative lending by banks

Similarly demand drivers for the equity market present a positive picture

Key Challenges:

  Mismatch of valuation expectation during IPO process

  Difficulty in conforming to listing requirements

  Lack of awareness & resource constraints from issuer’s perspective

Outlook:

  U p g r a d e o f U A E a n d Q a t a r exchanges to emerging market status, effective in May 2014, will likely have a positive impact on the equity markets

  According to a report by Deloitte, i nc reas ing fo re ign i ns t i t u t i ona l investments, rising volumes to drive IPO’s in GCC countries going forward

S&P GCC 40 Index (Rebased since 2010)

Source:Bloomberg S&P, DB research

80

90

100

110

120

130

140

Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13

Year                      Performance 2010                                          14% 2011                                        -­‐‑16% 2012                                              6% 2013  YTD                          29%

Middle East Capital Market Summary

Summary

Source: Zawya Middle East here includes GCC countries, Turkey and Jordan

Debt Market

• Several factors are driving the growth for the debt capital market in the region

‒ Rising requirement of infrastructure financing

‒  Newer sovereign issues for creating and extending benchmark curve

‒ Growing number of countries with enabling Sukuk issuances environment

‒ Constraints on bank lending

‒ Investors’ appetite for emerging market bonds amid a hunt for yields

‒ With the prospects of a US Fed monetary stimulus tapering, issuers are taking the small window of opportunity (before the actual tapering begins) to issue new Sukuk and bonds, and lock in lower cost of borrowing

• On a longer term basis, the Sukuk market’s prospects are bright as investor awareness rises and newer corporations and governments come up with issuances, in the process creating a more liquid and deep market

Total Debt issuances have grown at a CAGR of 40% over the last few years; on average sukuk issuances have increased as a % of total issuances since 2010

Split of – Sukuk and Bond Fund Raised in Middle East

Source: Zawya, CapitalIQ Note: 2013 figures are YTD till November 2013, Middle East here includes GCC countries, Turkey and Jordan

2012 Issues - USD 60.5 bln

47%53%

Sukuk Bonds

2013 YTD Issues - USD 59 bln

45%

55%

Sukuk

Bonds

Trend in – Sukuk and Bond Fund Raised in Middle East

8,166 7,99219,875

27,201 26,519

8,2982,758

11,056

2008

31,169

50,921

2012

31,046

+40%

2009

60,475

2013 YTD

33,274

42,037

2010

58,990

33,871 32,471

39,161

2011

Bonds Sukuk

League Tables (Bloomberg Q3 2013 ytd)

#5  for  GCC  Sukuk

ENBD  is  the  leading  UAE  Bank  on  Bloomberg’s  International  Sukuk  and  GCC  Sukuk  League  Tables:

#  5  for  Globally  for  USD  Sukuk

International    Sukuk

                                                         Q3  2013 Rank Mkt  Share

HSBC  Bank 1 17.0%

Standard  Chartered  Bank 2 14.9%

Deutsche  Bank 3 14.7%

Citi 4 10.6%

Emirates  NBD 5 8.2%

Dubai  Islamic  Bank 6 6.2%

National  Bank  of  Abu  Dhabi 7 4.9%

Abu  Dhabi  Islamic  Bank 8 3.0%

RBS 9 2.7%

Maybank 10 1.8%

GCC  Islamic  Bonds

                                                         Q3  2013 Rank Mkt  Share

HSBC  Bank 1 30.6%

NCB  Capital 2 15.5%

Deutsche  Bank 3 10.5%

Standard  Chartered  Bank 4 6.3%

Emirates  NBD 5 5.2%

Dubai  Islamic  Bank 6 4.5%

Albilad  Investment 7 3.3%

Alinma  Bank 7 3.3%

Riyad  Bank 7 3.3%

Banque  Saudi  Fransi 10 3.0%

Several Demand & Supply drivers would play a role in debt issues & Corporate Fund raising going forward

Infrastructure Funding

• Diversification: Infrastructure building a key to diversify the oil dominant economy

• Increasing GCC Infra Funds Requirement : $2 Tn over the next 20 years – QFCA, Qatar

• Long term funds: Bonds offer long term funding alternatives

• Project Bonds to Grow: In Aug ‘13 Ruwais Power issued $825m project bonds to refinance a utility in Abu Dhabi

Building a Benchmark Curve – Sovereign

Issues

• Development of regional bond market:

For capital markets to develop and provide a strong financing alternate to firms, developing a deep and liquid bond market is crucial

• Corporate issues faced pricing uncertainty: Lack of well defined benchmark curve was a constraint

• Government issues: Sovereign issues creating/extending the curve

Regulations to support Sukuk

• Large Muslim Population: MENA region has a large Muslim population, creating potential for Islamic finance

• Developing Sukuk market is important: Sukuk, being shariah compliant, is an important alternate source of funds

• Govts across MENA developing Sukuk laws: Egypt, Morocco, Oman among the countries creating new Sukuk laws

Bank Lending Constraints

• Implementation of Basel III framework: New regulations requiring higher capital will restrict bank’s lending pushing corporations to seek finance via bonds/Sukuk

• Tighter lending norms/conservative lending: Central banks’ risk reduction measures entail raising reserve requirement; banks may resort to conservative lending; limitations on single name/sector exposure

Hunt for Yields Attracting Foreign

Investors

• Low interest rate environment: With relatively lower rates in the US and Europe, investors pored in funds in emerging market bonds for higher yields

• USD bonds opened up diversification avenues for issuers: Dollar denominated bonds helped regional issuers tap foreign investors and diversify funding base

Alternative & Cheaper source of Funds

• Cost of Credit: With Basel III and stringent bank lending norms, cost of bank credit could rise for borrowers

•  Sukuk yields have been low: Since 2009, Sukuk yields have been low. Despite the recent rise, average Sukuk yields in 2013 remain at same levels as 2012

• Bond funding to complement bank loans: They can be combined together as seen in the case of Ruwais Power

Agenda

24

GCC macro trends

Capital market developments

Future outlook

UAE overview

Interesting Segment / Sectors

Contracting

Real Estate

Commodities

MNCs

Going forward

25 283532-02-20120401-Strategy document-GM-dxb-v2.pptx

Lower large corporate, mid-cap, and upper SME likely to be Corporate Banking sweet spot

Mid-Cap (Commercial Banking)

Small-Cap (Business Banking)

Micro (Retail Banking)

Large-cap (Corporate Banking)

GREs (Govt. & Govt. related entities)

•  Price oriented, mostly limited usage of bank products

Key characteristics

•  5-10 banks •  Need range of

(sophisticated) products •  International presence •  Professionally managed •  Price sensitive

•  Growth mode •  3-5 banks •  Increasing usage of

credit, T/F and FX •  Less sensitive to price; •  Relationship oriented

•  1-2 banks •  Start usage of credit and

Trade Finance products •  Need proximity to bank

xx Turnover (AED M p.a.)

tbd

>500

Growth engine

500

100

25

Criteria

•  Turnover >500M AED (with some differentiation by industry - e.g., trade versus mfg)

•  Sophisticated product needs (CM, TF, IB, TRY, …)

•  CFO & TRY function (drive relationship location)

•  Multiple geographic locations

•  Turnover >100M AED •  Increased requirements of more

sophisticated trade products (e.g. Treasury)

•  Finance manager rather than CFO

•  Turnover > 20–25M AED •  Clearly identified credit and

trade needs •  Higher facility needs than

traditional retail credit

•  Govt department, ministries and govt related entities

Note: Financial Institution and International not shown in above segmentation

GCC contracting industry: expected to grow robustly over the next few years

26

•  Overall GCC project market size is AED 3.78 trillion (US$1.03 trillion)

•  KSA has the biggest pipeline of projects at AED 1,688 bn followed by Kuwait at 698 bn and UAE at 661bn

•  During 2012 approx. AED 103 bn worth of new contracts were awarded in the MENA region

Growth factors contributing to GCC construction industry:

Projects Country Wise AED billions

UAE • The expected CAGR of 9.5% for construction industry between 2012-2016* • Favourable government policies such as visa extension for real estate investors from 6

months to 3 years • Thriving leisure and tourism industries • Growing UAE population which is expected to reach 7m by 2015 from 5.4m in 2010**

KSA • Consistent budget surpluses are leading to strong government spending on infrastructure industry

• The recently passed mortgage law is expected to become the main driver for the residential sector in 2013

Qatar • Government spending on infrastructure is expected to exceed AED 734bn over the next 10 years as a result of the country’s 2030 vision and 2022 FIFA World Cup preparations

Source: *GulfNews; **International Monetary Fund

3,781514

220

6611,688698

GCC Qatar Oman Saudi Arabia

Kuwait UAE

Contracting industry will benefit from increased projects that have been started or announced

27

3,7

0 4Q12

7,7

3Q12

5,1

2Q12

5,5

1Q12

5

10

0 4Q12

40,4

3Q12

37,1

2Q12

36,0

1Q12

34,1 50

Backlog (Aggregate) AED billion

•  New order receipts (aggregate) by contracting companies in 4Q’2012 have doubled since 1Q’2012

•  The aggregate backlog order has increased by 18% since 1Q’2012. That demonstrates a robust growth in the contracting industry

•  Currently, Arabtec, Drake & Scull International and GECP have 87% market share in the aggregate contracting backlog.

Examples of large contracting projects awarded in 4Q’2012:

Order Receipts (Aggregate) AED billion

Jabal Omar pipeline installation in KSA worth AED 2.1 bn – Drake & Scull International

AED 25 bn worth project on expansion of Abu-Dhabi International Airport - Drake & Scull International

Msheireb Downtown Doha worth AED 2.3 bn - ARABTEC Holding

Baniyas Residential Development (construction of villas) in UAE worth AED 422 mn – ARABTEC Holding

Target engineering projects in UAE/Qatar worth AED 272 mn – ARABTEC Holding

3 construction projects for Ministry of municipal & Rural Affairs of KSA worth AED 327 mn – Al-Khodari

Source: *GulfNews; **International Monetary Fund

As part of Abu Dhabi Vision 2030, ~AED 300 bln worth of projects were started in 2012; additional AED 216 bln worth of projects are to be awarded in 2013 for Abu Dhabi and Al Ain respectively

28

Water & Power 5

Healthcare

Industry 22

Transport 48

Construction & Real Estate

98

Oil & Gas 120

15

2/3rd of the projects concentrated in 2 sectors

Source: Middle East Economic Digest (MEED)

Abu Dhabi projects breakdown 2012 (AED billion)

Abu Dhabi & Al Ain projects 2013 (AED billion)

36

2013

Al Ain

Abu Dhabi 180

216

29

• Contribution of EUR 17.6 Billion to GNP of which 68% will likely be contributed from visitors and a further 2/3rd will come from post event production and re-consumption

• Dubai government aiming to spend AED 70 billion to prepare for the event

• The event is likely to create ~275K jobs that will increase disposable income by EUR 5 billion (between 2013-2021)

• Industries that will benefit from job creation would be hotels and restaurants, construction and transportation/logistics

• Increase in Foreign Business Investment and Business Transactions will further drive the economy

Impact of Dubai Expo 2020

Dubai Expo offers significant upside opportunities, especially in tourism and logistics industries

Source: Emirates NBD Research

• Selective financing of government spend and real estate/construction industry for the event

• Customized solutions for the travel and tourism industry including employers and employees

• Provide banking services to businesses investing in UAE and capture the transaction banking revenues

• Develop insurance products targeted at Expo participants and tourists

• Invest in integrating financial products with logistics solutions to support expansion of the industry (e.g. financial supply chain, supply chain lending, payments etc.)

Opportunities for Banks

30

Supply of office and residential units projected to grow over the next few years

6.96.3

5.3

0.7

2015 2010 2011 2012

8.5

7.2

0.6

8.6

8.5 7.8

7.8 0.1

2013 2014

Dubai Office Stock Total stock (millions sq m)

Source: Jones Lang LaSalle, Q2 2013

354342327

2015

398

396

2

2014

396

379

17

2013

379

360

19

2012 2011 2010

Dubai Residential Stock # of units (in 000’s)

31

Dubai’s residential real-estate prices have picked-up since 2011…

•  Given that UAE has been considered a “safe haven”, political instability in ME and Africa can drive capital flow in UAE and likely into the real-estate market

•  Anecdotal evidence from real estate agents suggests cash buyers account for about 75% of sales of which high proportion are non-resident

Upside scenarios

•  Overheating of the real-estate market, •  Oversupply of properties, due to higher prices, will

likely impact price and investments

Downside scenarios

Source: Cluttons (via Bloomberg), Emirates NBD Research

-30

-20

-10

0

10

20

30

40

50

60

Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13

% y

/y

Mid range villas Mid range apartments High end villas

32

… and so have prime and secondary office prices

-70

-60

-50

-40

-30

-20

-10

0

10

20

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2009 2010 2011 2012 2013

% y

/y

Prime office Secondary office

Source: CLTSPRCL Index; CLTSSECL Index

33

Real Estate growth sustainable or another bubble?

Growth in real estate appears to be based more on fundamentals vs. speculation

‒ The sharp increases in property prices in 2008 were driven by excessive short-term speculative activity, especially on off-plan properties. For these properties, buyers only had to put down 10 per cent deposits (rather than the full price), so the market became highly leveraged

‒ Growing Economy – Dubai’s economy has experienced solid and sustainable rates of growth over the past three years

‒ Demographics – Population has grown from 1.97 million to 2.17 million in the last 1 year

‒ Return of confidence – According to Business Confidence Survey (Q1-2013), led by the Department of Economic Development (DED more than half (55 per cent) of businesses surveyed were expecting higher sale revenues in the second quarter of 2013, and 30 per cent were expecting stable sales thanks to rising activity and volume; 98 per cent of businesses planned to either increase (23 per cent) or maintain (75 per cent) their employment count for the second quarter

‒ Improving regulations – New real estate laws are being implemented to increase investor confidence (two new laws aiming at increased transparency and better regulation were introduced recently aiming at increased transparency and better regulation)

‒ Expo 2020 – If Dubai gets to host Expo 2020 close to 300,000 more jobs could be created with 25 million people visiting Dubai. 90 per cent of the job opportunities would occur from 2018 to 2021, which in turn creates further demand for real estate

Source: Web Research

Commodity companies have opened up in the UAE over the past few years at a very high rate

34

6,890

5,720

4,008

2,6461,920

1,4371,15591967822328

2003 2010 2011 2012 2013 YTD

+73%

2007 2005 2006 2004 2009 2008

# of companies in DMCC

Key facts • AED 30 billion i.e. 2.1 % of UAE GDP was contributed by DMCC • On average 200 companies open a month • Over 85 per cent of these businesses are new to Dubai

1,270 companies opened in H1 2013; 260

in April 2013 alone

Source: Web search; Dubai Multi Commodities Centre (DMCC)

Gold and Diamond comprise 95 % of the commodity trade flows through Dubai

35

68.3

121.1Gold

Diamonds

Agro 6.7

Import

0.1

84.1 205.2

75.5

0.2

Export

143.8

0.3

16.5

Precious stones

23.2

Commodity Imports, exports and total trade flows through Dubai – 2011 (AED Billions)

% of Non - Oil GDP

55

X

39

6

0.1

Source: Dubai Multi Commodities Centre (DMCC)

Trade volumes of Gold and Diamond have been growing phenomenally over the last few years

36

205

152129121

7859

43

+30%

2011 2010 2009 2008 2007 2006 2005

144129

6667

4531

43

+22%

2011 2010 2009 2008 2007 2006 2005

Gold trade flows through Dubai – 2011 (AED Billions)

Diamonds trade flows through Dubai – 2011 (AED Billions)

Source: Dubai Multi Commodities Centre (DMCC)

Key facts • Gold trade increased to AED 256

bn in 2012 i.e. 25% of world’s physical gold passing through the emirate

•  In 2011 India imported 25% of its gold consumption from Dubai i.e. 365 tones (Exports – 225; Import – 140)

• Trade volume of rough diamonds increased by 23% from 2011 to 2012 to 121 million carats, and the value increased by 22% to US$ 11.5 billion

• Rough and polished diamond trade are 25% and 75% of total diamond trade respectively

•  India (32%), South Africa and Switzerland accounted for 45% of diamond trade through Dubai

UAE’s attractiveness to MNCs has improved significantly thereby necessitating the need for greater focus on Global Banking / MNC

37

Global Indices Rank (2012-13) Rank (2013-14) Change

Global Competitiveness Overall Ranking

•  24th position •  19th position

In addition, several other factors also contribute to the overall package •  Easy access to financing: (Loans – ranked 5th for 2012-13 and 3rd for 2013-14); (Financing

through local equity market - ranked 28th (2012-13) and 21st for (2013-14) •  Quality of the educational system – ranked 17th last year and 15th this year •  Free Zones offering fiscally benign environment

High Infrastructure Quality

•  8th position •  5th position

Highly Efficient Goods Market

•  5th position •  4th position

Strong Macroeconomic

Stability

•  7th position •  7th position

Strong Public Trust in Politicians

•  3rd position •  3rd position

Happiest Country in the world

•  17th position •  14th position

Source: Global Competitiveness report 2012-13 & 2013-14; UN world happiness report

Agenda

38

Macro trends

Capital market developments

Future outlook

UAE Overview

Interesting Segment / Sectors

Going forward

“Name lending” that prevailed pre-crises, has subsided; Banking would indeed go “back to the basics”

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•  Pre-crisis, economy grew at a rapid pace, with real estate prices enjoying double digit growth

•  Company funds generated by core business sometimes being diverted into real estate; positions leveraged beyond debt servicing capacity

•  Banks at times lent based on name and/or collateral, but after the bubble burst, some banks facing loan losses/provisions and liquidity challenges

Pre-crisis •  With Implementation of Basel III framework i.e. new

regulations requiring higher capital will restrict bank’s lending (pushing certain corporations to seek finance via bonds/Sukuk)

•  Tighter lending norms/conservative lending: Central banks’ risk reduction measures entail raising reserve requirements; banks may adopt more conservative lending; limitations on large exposures/sector exposure

•  Interest spreads/margins have come down due to competitive pressures, leading to inadequate returns for the banks; banks seek to increase ancilliary business in order to maintain mutually beneficial and sustainable long term client relationships

Going forward

40

Thank you