UNB Launches its First Islamic Fund

Union National Bank announced the launch of the Al Samaha Islamic Fund, a Shariah compliant fund investing mainly in the UAE and with the flexibility to seek opportunities in other GCC countries, MENA and other emerging equity markets. The fund aims at investing in a balanced portfolio compliant with the Shariah creating a growth in the capital both in the short and long term.

The Fund will focus on Islamic equities in addition to other Shariah investment instruments that are compliant with the Shariah methodology. The fund is an Open-Ended Fund with Weekly Liquidity.

The minimum subscription to the Fund is AED 10,000 and thereafter in multiples of AED 1,000. Investment in units is open to all individuals without restrictions. The subscription will start on 18/5/2008 till 11/6/2008. The subscription and redemption forms for the fund will be available at all UNB branches all over the UAE. The fund will have weekly liquidity and its Net Asset Value (NAV) will be calculated and posted on a weekly basis.

"The idea of the fund emerged from the high liquidity in the local market and the low interest rates. In addition to the promising quarter results of the listed companies which led to the substantial increase in the stock market deals. All reflect the return of trust to the local market," said Galal Khadr, Head of Private Banking '&' Wealth Management Division at UNB.

"At UNB we are always keen to offer our clients distinguished services that meet their various requirements and we expect the Fund to be met with enthusiasm from a wide range of investors and for it to be our flagship entering into the Islamic products arena." Khadr said: "We also see new opportunities every day and are confident that the market can yield higher returns in the near and long term," added Khadr The Fund is approved by the UAE Central Bank and will be managed by a highly qualified team that will serve clients and offer them the latest investment solutions to address their investment needs.

Galal Khadr further commented: "The region continues to attract new funds and the UAE in particular has enjoyed continuous improvement in the investment environment which creates ideal opportunities for investment. On the macro-economic level, the region is being driven by a continuous surge in oil prices with the real estate and banking sector leading the economy. With the expectations of an increase in the organizations' profits in 2008 the stock market is expected to grow positively in the future."
/WAM/

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ADCB launches MSCI Arabian Markets Index Fund

As part of their ongoing endeavors to deliver innovative investment solutions, Abu Dhabi Commercial Bank today announced the launch of the ADCB MSCI Arabian Markets Index Fund, a first-of-its-kind fund designed to track the performance of a diversified basket of Arabian market stocks.

"As the regional GCC equity and capital markets continue to grow, so too has the demand for more diverse and innovative solutions to meet the growing sophistication of investors. With this in mind, Abu Dhabi Commercial Bank is leading the way on a wide range of funds initiatives in the UAE and the broader region" said Ahmed Barakat, Head of Wealth Management Group at ADCB.

"A particular success for the bank is its mutual funds range whose increased appeal can be attributed to easy access to any market. Today as individuals become more affluent, professionally run products are central to preserving wealth and to growing it over time. Mutual funds offer that option while being cost effective, transparent, and regulated by renowned agencies." "The ADCB MSCI Arabian Markets Index Fund provides an ideal entry point for investors seeking efficient, low cost, passive exposure to one of the most dynamic investment destinations in the world," said Mark Friedenthal, Fund Manager, ADCB.
/WAM/

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Tamweel closes syndicated bank facility

Tamweel has closed a $235 million syndicated bank facility, which was subscribed to by both regional and international financial institutions, including some from the Far East.

“In this period of marked global financial instability, the international financial services community is more eager than ever to tap opportunities in high-growth emerging markets, especially the UAE,” says Vishnu Deuskar, Head of Global Markets at ABN Amro’s UAE operations.

ABN Amro and Noor Islamic Bank served as lead arrangers and joint book-runners for the transaction, priced in both dollars and dirhams and reaching maturity in three years.

This financing facility comes close to Tamweel’s closure of a $300 million exchangeable sukuk issue, whose order book was oversubscribed within hours of announcing in January. “The pricing, tenor and coverage of this facility are all extremely competitive, especially considering today’s challenging global economic environment,” notes Gaurav Agarwal, Chief Financial and Support Services Officer at the mortgage company.

The funds will come in handy for Tamweel’s overseas expansions, expected to contribute 30 per cent of total revenues by 2011. in February, it formalized plans to launch operations in Egypt by receiving a license from the Egyptian Mortgage Financial Authority. The launch of full-scale operations is set for the second quarter.

Tamweel already has a joint venture agreement with the Al Oula Development Co in Saudi Arabia.

Tamweel has recorded net profits of Dh176.34 million in the first three months of 2008, which represents a 246 per cent increase on the Dh50.47 million recorded last year. Islamic financing and investing assets rose to Dh6.63 billion from Dh3.01 billion a year before.

Also in the first quarter, Tamweel booked Dh2.54 billion in financed properties, while the accumulated financing assets has totaled Dh11.52 billion.

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FGB's first wealth partners with Salama to offer Takaful products

First Gulf Bank (FGB), one of the UAE's leading financial institutions, has announced a strategic partnership with SALAMA- Islamic Arab Insurance Company, the largest Takaful and Re-Takaful group in the world.

The partnership will offer FGB's First Wealth customers access to a range of individual Family Takaful solutions across the region.

First Wealth was set up to target primarily the UAE's and the region's High Net worth Individuals (HNWI) and mass affluent segments. It provides a comprehensive range of investment products and services tailored to the financial planning needs of local and expatriate clientele.

"We continue to deliver products and services that meet customers' requirements, said Mufazzai Kajiji, head of Wealth Management, FGB. By partnering with SALAMA, we provide First Wealth customers the access to quality and affordable family Takaful solutions. We are pleased to partner with SALAMA".

Noel D' Mello, head of Family Takaful, SALAMA said "At SALAMA, we pride ourselves in creating one of the most comprehensive range of Individual Family Takaful solutions in the region with an aim to offer high quality, yet affordable products that can be tailor made to suit every individual's need, be it savings or protection, or a combination of both. We are delighted to have entered a strategic partnership with First Gulf Bank to offer Bancatakaful".

SALAMA enjoys both Arab and international presence. The company embarked from Dubai on its quest for expansion through acquisitions and participation in a number of Takaful and Re-Takaful companies in many Arab and Islamic countries.

"By 2015, it is believed that the total value of the global Takaful market will be around $15 billion. The Islamic insurance market is one of the fastest growing in the financial services industry," concluded Kajiji.

FGB's First Wealth continues to attract the UAE's and the region's High Net Worth Individuals (HNWI), thanks to the comprehensive range of investment products and services tailored to the financial planning needs of local and expatriate clientele. First Wealth also oversees clients' other investment portfolios such as wealth protection, investment-based retirement planning, health plans, savings and insurance, offering a holistic personal finance management service ensuring unparalleled efficiency. WAM

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Unscrupulous investor arrested in Abu Dhabi

A suspect who reportedly hoodwinked thousands of investors and swindled nearly Dh7 billion from them is currently being questioned by Abu Dhabi police.

An Abu Dhabi Judiciary Department official cautioned the public against investing their money with bogus investors following the arrest of the Emirati suspect, A.A.Q of Syrian origin.

An official said law enforcement officers monitored the suspect's movements and traced all his fraudulent transactions prior to his arrest.

A number of his assistants were also arrested.

A 31-year-old Emirati victim told Gulf News on Sunday: "I invested Dh400,000 with the suspect through a broker who convinced me that my investment will render a 30-40 per cent guaranteed profit per month... the suspect paid me 30 per cent profit for the months of February and March before his arrest."

Sources close to the investigation claimed that more than 10,000 individuals have been conned by the suspect. "The interrogation continues. The public shouldn't invest their money with people who are unlicensed to run funds companies," warned the official.

A Ras Al Khaimah resident told Gulf News he sold his house for Dh2 million, bought a 1994 car and a small flat to live with his family and invested the balance [about Dh1.5 million] with the suspect. /Gulf News/

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Laws proposed to limit debt

The Federal National Council has proposed stringent rules for personal loans to prevent more people falling deep into debt.

At a meeting yesterday, officials urged the speedy creation of an independent credit bureau to regulate the multi-billion dirham lending industry.

During the session, attended by Obeid al Tayer, the State Minister for Financial Affairs, and Sultan al Suwaidi, the Central Bank Governor, members also recommended a credit reporting system to stop people borrowing more than they can afford to repay.

UAE courts have to settle thousands of debt-related cases despite the overall amount of personal debt in the UAE being a relatively low Dh43 billion (US$16bn). There is also no system to track credit history and assess people’s borrowing capacity.

A special FNC committee reported that while banks were required to limit personal loans to Dh250,000, some were lending customers with low salaries more than 55 times their monthly wage.

The institutions also offered them several credit cards with spending limits above Dh50,000, which trapped them in a cycle of high-interest payments they had very little hope of escaping.

About 560,000 people borrowed nearly Dh700bn last year, according to the committee.

The lawmakers approved a recommendation that banks provide personal loans in proportion to a customer’s salary, and that the amount not exceed 25 times their total income.

Banks were also urged to stop a practice whereby customers were required to sign cheques guaranteeing the amount of their loan. Several lawmakers complained this was a common practice and said many people had been jailed for dishonoured cheques.

One of the lawmakers, Yousef al Noaimi, who represents Ras al Khaimah, noted that some banks offered “marriage loans” that were repaid over 14 years.

“Is fair to do that to the citizens?” he asked.

The proposals will be forwarded to the Cabinet for approval.

Some lawmakers further suggested that the Central Bank was failing to protect ordinary lenders.

“The Central Bank hasn’t fulfilled its role as a monitor. I hope the Central Bank will wake up and realise the gravity of the situation,” said Mohammed al Zaabi, a lawmaker from Sharjah. “We need transparency. Personal loans have become a rolling snowball.”

Another member, Dr Abdullah Shaheen, from Ras al Khaimah, said the Central Bank had been “inactive” and was being too lax on banks that helped customers to circumvent the rules to borrow amounts exceeding their means.

“The Government needs to decree a political decision to control loaning policies. People have become portable banks with salaries not exceeding Dh3,000,” he said.

Mr Suwaidi responded that the Central Bank was working with banks to limit extravagant personal loans. He said car loans should not exceed Dh150,000 dirhams and not be more than 80 per cent of the value of the vehicle.

The Central Bank chief added that the institution was working on new regulations for property loans. “We’ve been improving our control apparatus along with the increasing population and international developments in the field,” he said, noting that the Central Bank last month launched a programme to train some 80 Emiratis in auditing standards to be part of loan monitoring teams.

Mr Suwaidi added that about three-quarters of 33,000 debt-related cases handled by the courts last year were disputes between landlords and tenants. A significant amount involved disputes between businessmen or bounced checks, while only seven per cent cases related to banks.

“Bank disputes only constitute 5,710 [of the cases] and they barely end by jailing people,” he said.

Mr Tayer also said the Government was drafting a law to regulate real estate loans. He rejected suggestions that the Government pass a law prohibiting lenders from guaranteeing loans with salaries.

The minister said that would prevent too many people whose only guarantees were their salaries from obtaining small business loans. “We shouldn’t prevent this layer of society from benefiting from loans,” he said.

The FNC committee also recommended the establishment of specialised courts to examine cases of Emiratis unable to pay their bank loans, as well as the establishment of a government fund in co-operation with charities to help people with heavy debts. Source

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ALDAR Properties signs an Islamic Ijara facility with consortium of leading regional banks

ALDAR Properties PJSC, the renowned Abu Dhabi-based property developer, announced today a AED 2.203 billion (US$ 600 million) Ijara facility, has been put in place for the company. The Ijara facility is equally financed by Abu Dhabi Commercial Bank, Abu Dhabi National Islamic Finance (a subsidiary of National Bank of Abu Dhabi), Badr Al-Islami (the Islamic Banking Division of Mashreq bank psc), Dubai Islamic Bank, First Gulf Bank and Noor Islamic Bank.

Dubai Islamic Bank (represented by its investment banking arm, Millennium Capital Limited, regulated by the Dubai Financial Services Authority "DFSA") acted as structuring and documentation agent for the transaction, while National Bank of Abu Dhabi acted as security agent. Allen and Overy advised ALDAR on the transaction while Clifford Chance LLP acted as the banks' counsel.

"The success of this transaction, particularly given the challenging global financial environment, is an important endorsement of ALDAR's track record. We are grateful to each of the participating banks for their support and we are proud to have Islamic finance contributing to our business model," said Ahmed Ali Al Sayegh, Chairman of ALDAR.

Further commenting on the announcement, Ahmed Ali Al Sayegh, said: "The successful close of this Ijara facility has again shown ALDAR to be a reputable, trustworthy and sophisticated company in its approach to the debt markets."

The transaction has been approved by the Shariah Supervisory Boards of the lead arrangers, making it fully compliant with the principles of Islamic finance. The facility has a four year tenor and will be used for general corporate purposes in support of ALDAR's business plan and growth model.

Today's announcement comes just a few days after Moody's Investors Service assigned long term local and foreign currency issuer ratings of A3 to ALDAR. Moody's, a leading provider of independent credit ratings, research and financial information to the capital markets, has described the outlook for ALDAR as stable.

"ALDAR's ratings are supported by its leading market position within the Emirate of Abu Dhabi, whose real estate market is bolstered by a combination of strong demographic growth and a growing domestic economy. Ratings also benefit from the company's intention to build a significant rental property portfolio, which will ultimately support a stable and predictable income stream over the medium to long term," it said.

In February this year, the company won awards for its shariah compliant financing, scooping ‘Best Mudarabah Deal' and ‘Best Real Estate Deal' from Islamic Finance News (IFN) as well as ‘Sukuk Issue of the Year' from EuroWeek magazine. Prior to today's announcement, ALDAR had already secured funding in excess of AED 34 billion (US$9.2 billion) to undertake the development projects through convertible bonds (sukuk), capital debt instruments and bilateral debt facilities.

ALDAR Properties has announced developments worth more than US$65 billion since its launch in 2005 including Central Market, Al Raha Beach, Coconut Island, Noor Al Ain, Al Gurm Resort, as well as the YAS Island project which includes a Warner Bros and a Ferrari theme park.

ALDAR has the largest land bank in Abu Dhabi comprising over 34 million square meters, 100% earmarked for specific developments valued at AED 44.2 billion (US$12 billion) as at 31 December 2007. The company is one of the largest UAE-listed property developers by market value and was the first Middle Eastern company to list a sukuk on the London Stock Exchange.




Notes and contacts
About ALDAR Properties

ALDAR Properties PJSC is a premier real estate development, management and investment company with headquarters in Abu Dhabi, UAE. ALDAR was established to create world-class real estate developments for Abu Dhabi, while providing stable and profitable investment portfolio for all our investors and stakeholders.

About Abu Dhabi Commercial Bank ("ADCB")

Abu Dhabi Commercial Bank - ADCB is a diversified full service bank. Other than banking services that span corporate, retail and commercial banking ADCB is active in the areas of treasury derivatives, infrastructure finance, private banking and wealth management.

Our approach is driven by the ability to create value for our customers by leveraging our skills and expertise. Amongst UAE banks, ADCB enjoys one of the largest deposit base with total assets as at 31/12/2007 of AED 106.2 billion and net profit of AED 2085 million in 2007.

Our strong franchise, supported by a network of 44 branches in the UAE, including 2 pay offices, 2 Kiosks besides 2 full fledged branches in India is reflected in our recent rating of Aa3 by Moody's, which is the highest awarded to a bank instrument in the Middle East.

The Government of Abu Dhabi, through Abu Dhabi Investment Council, holds 65% of the capital while the rest is held by various UAE Institutions and Nationals. ADCB's market capitalization as of 31/12/2007 was AED 25.7 Billion (US$7Billion).

About Abu Dhabi National Islamic Finance ("ADNIF", subsidiary of National Bank of Abu Dhabi)

A new Islamic Finance organization which started its business in 2008, is from the breed of the largest, award winning banking institution of the UAE - The National Bank of Abu Dhabi with 40 years of experience and a recipient of many national and international awards.

With an expected official launch in mid 2008, ADNIF as a fully sharia compliant organization has its strength in innovative sharia compliant products, team of well experienced, dedicated Islamic bankers with excellent tract record in Abu Dhabi & beyond. It also has a dedicated team for Legal, Shari'a Compliance, Financial control, Operations & back office, a reputed Sharia Board with the top most sharia scholars of the likes of Dr.Jasim Ali Salem Al Shamsi, Sheikh Nizam Ya'kouibi, and Dr. Abdul Sattar Abu Ghudda.

Through its dedicated Corporate , Retail, Treasury & Investment divisions, ADNIF strategy is to offer a range of Sharia compliant banking & finance services with Islamic banking division -NBAD (managed by ADNIF) which complements each other. In a market flooded with competitors, big promises and complex products, ADNIF believes in providing real solution in line with its clear market positioning and brand-promise ‘......pure & simple'

About "Badr Al-Islami" (Islamic Banking Division, Mashreqbank psc)

Established in 2006, Badr Al Islami is an independently managed business comprising Badr Al-Islami Finance and Badr Al-Islami Banking. Badr Al-Islami Finance, which is majority owned by Mashreq, is a private joint stock Islamic Finance Company and Badr-Al Islami Banking is the Islamic Banking Division of Mashreq.

With a diverse portfolio, Badr Al Islami offers its customers a complete spectrum of Sharia compliant products with high quality services. Its mission is to build a culture for customers' experience around the core Islamic values of trust, integrity, commitment and dedication. Badr Al Islami is subject to the supervision of UAE Central Bank and an independent accounting firm, as well as, the Sharia Supervisory Board.

About Dubai Islamic Bank

DIB, established in 1975, is the first Islamic bank to have incorporated the principles of Islam in all its practices. DIB is a public joint stock company and its share is quoted on the Dubai Financial Market. The bank enjoys a reputation as a leader and innovator in maintaining the quality, flexibility and accessibility of its products and services. In a very short space of time it has created market leading services and products that are setting benchmarks for the rest of the sector.

DIB has won the respect of its peers around the world. The bank was recently named by Islamic Finance News the UAE's Best Islamic Bank. DIB has also received many awards from international organizations such as the prestigious "Bank of the Year - UAE" award for 2006 by The Banker magazine and accolades from Euromoney. DIB has garnered the attention of international credit rating firms receiving ratings from Standard & Poor's and Moodys agencies.

About First Gulf Bank ("FGB")

As one of the leading banks in the UAE, First Gulf Bank (FGB) has Shareholder Equity of over AED10 billion making it one of the largest equity based bank in the UAE. Established in 1979 and headquartered in the UAE capital Abu Dhabi, the bank provides financial services in various business and industrial areas with a wide network of branches across the Emirates.

About Noor Islamic Bank ("NIB")

Founded in 2007 in Dubai, Noor Islamic Bank stands as a global icon, transforming the offering and experience of modern Islamic banking to meet the needs of today's consumers. A full service bank, Noor Islamic Bank delivers the broadest range of products for its consumers, with an emphasis on unique and personalised services.

Noor Islamic Bank's products and services are governed by a Shari'ah Board, comprising leading Islamic scholars with extensive experience and expertise in legal, financial and banking-related matters. Noor Islamic Bank has 10 locations across the UAE in Abu Dhabi, Al Ain, Dubai and Sharjah. (PR)

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First Gulf Bank beats profit forecasts

Abu Dhabi's First Gulf Bank posted its seventh consecutive record profit in the first quarter on higher revenue from its lending and non-lending business, beating analysts' forecasts.

Net income in the three months to March 31 surged 66 per cent to Dh675 million, or Dh0.49 per share, the bank said in a statement, without giving comparative data for the year-earlier period.

Net interest income rose 53 per cent to Dh423 million, and non-interest income more than doubled to Dh600 million, it said.

"We remain focused on the planned organic growth of our core banking business and the strengthening of our complementary businesses in merchant banking, equity brokerage, real estate and Islamic finance mortgages," FGB Chief Executive Officer Andre Sayegh said in the statement.



"Subsidiaries and associate companies are becoming fully integrated and represent core income for the entire FGB," Sayegh said.

Forecasts in a Reuters survey of analysts last month ranged from Dh483 million and Dh561 million.

Shares of First Gulf Bank have held steady this year after almost doubling 2007. They closed up 0.25 per cent on Wednesday at Dh20.15.

In contrast, shares of rivals such as National Bank of Abu Dhabi and Abu Dhabi Commercial Bank have risen 5 per cent and 2.3 per cent respectively.

Abu Dhabi's main stock index is up more than 5 per cent this year. (Reuters)

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Abu Dhabi Commercial Bank eyes $1.3 bln bond sale

Abu Dhabi Commercial Bank ADCB.AD (ADCB) said on Monday it could borrow up to 4.8 billion dirhams ($1.31 billion) by selling bonds to help finance expansion and lending.

Abu Dhabi's second-biggest bank by market value would seek shareholder approval to sell bonds denominated in UAE dirhams, Alok Kakkar, ADCB head of corporate finance, said.
"We are seeking approval at the extraordinary general meeting for a bond issue worth 4.8 billion dirhams," Kakkar told Reuters, without being more specific.

Expectations that the United Arab Emirates and its Gulf Arab neighbours could choose to revalue their dollar-pegged currencies as the U.S. currency tumbles on global markets has led to an increase in borrowing in local currencies.

UAE investors in dollar-denominated bonds fear that if the dirham appreciates, their returns in local currencies would be slashed.

"The proceeds will go towards expansion plans and for funding projects in the UAE and overseas," Akkar said. The shareholder meeting will be held on April 21, the bank said in a statement.

"There is no date clearly identified when the sale would take place," Kakkar said.

ADCB, like its regional rivals, is expanding abroad as competition intensifies at home.

The bank said earlier this month it had won ministerial approval to buy 25 percent of Malaysia's fourth-largest lender, RHB Capital (RHBC.KL: Quote, Profile, Research), to tap growing Asian demand for Islamic bank services.

ADCB Chief Executive Ervin Knox said in January the lender expects profit this year to rise by at least 20 percent on higher lending to consumers and projects. (Reuters)

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Abu Dhabi Investment House (ADIH) reports net profit of AED 220 million for the fiscal year 2007

Abu Dhabi Investment House (ADIH) Chairman of the Board, Jowa'an Awaidha Al Khaili announced yesterday that ADIH made a net profit of AED 220 million for the fiscal year 2007, 47% higher than last year - distributing a cash dividend of 30% (0.3 AED per share) to shareholders.

Making an official statement, Mr Al Khaili said ‘this is the most successful year for ADIH in its third fiscal year. As a fairly young company, ADIH has managed to establish itself as a leading boutique investment house regionally and globally. This is attributed to clear strategy and business model focused on identifying unique investment opportunities that yield high risk adjusted return to investors. This was also assisted by our relationship with the investors, exploiting market conditions with robust economies and flexible government strategies, where ADIH operates.'

The operating income for the year is 304 million due to ADIH's investment under strategic plans to build the company's capabilities, developing new business, opening of new offices in Bahrain and Geneva and on the development of the company's human resources.

Return on Capital (ROC) has increased significantly since ADIH's inception. In 2005, ROC was 20%, increasing to 75% in 2006, and further growing to 110% in 2007, while net assets per share increased by 58% in 2007 to AED 3.03 per share compared to AED 1.92 per share in 2006.

The balance sheet grew impressively to AED 853 million - an increase of AED 139 million or 20% when compared to December 2006. This reflected strong business growth driven by increase in client investments in ADIH overall funds and projects.

The resultant increase to shareholders' value has allowed a cash dividend of AED 0.3 per share; a total of AED 60 million.

On the Social Responsibility front, ADIH was involved in several charity events and community service-related activities that included events for the disabled, Zakat and events that catered to helping increase youth activities.

Rashad Y. Janahi, ADIH Member of the Board and Managing Director, said, "Our 2007 results further demonstrate ADIH's fast and steady growth, as we continued to diversify our portfolio and seized major exit opportunities where possible. Despite the bank's relatively young age, it has succeeded in positioning itself as a major player in the regional market. ADIH will continue to originate unique funds, including Entertainment Cities in India, China and North Africa and other funds related to real estate, in addition to other business lines, particularly in asset management, private equity and corporate finance through experienced and professionals in the industry - all of which will contribute to another successful year.

"The financial performance could not have been achieved without the unwavering efforts and commitment of the entire ADIH team, who is dedicated to long-term success and returns to shareholders," he said.

2007 achievements

The Lagoon Fund - successful exit with an ROI of 30%

ADIH's activities and transactions in 2007 spurred the organization's strong performance. These transactions included ADIH's first fund exit, the Lagoon Fund, which yielded a 30% return on investment, above the initial projections. The fund, launched in June 2006 to finance the US$ 90 million commercial development: The Lagoon, at Amwaj Islands, managed to raise USD 42 million in equity, invested over its16 month investment period. This over-achievement reflected the significant interest in the project.

Al Arabi Fund - successful partial exit with an IRR of 25%

In addition, ADIH also made a partial exit from Al Arabi Equity Fund, which will give an internal rate of return (IRR) of 25%, above the initial 20% target IRR.

Entertainment City

In 2007, the Entertainment City concept was introduced. A mixed-use mega development, combining the clusters of residential, entertainment and retail that is set to be developed and implemented in the GCC, India, China and North Africa - with a cost of more than US$ 10 billion. To further ensure the concept is implemented according to international standards, the Entertainment City Advisory Board consisting of major leaders of the Entertainment industry was appointed in quarter 4 of 2007. Areas that the Advisory Board will be consulting on include: entertainment family centre and theme park operations, entertainment and sports events, performances and exhibitions, entertainment design and master planning, international entertainment and educational museums, entertainment and sports news and entertainment brands and sponsorship. Advisory Board members include the following members: Juha Tiihonen - Chairman and CEO, Starcut USA, Inc.; Joel Katz - Greenberg Traurig ; Charlie Besser - President and CEO, Intersports, ; Charles ; Mark Shapiro - President and CEO, Six Flags; Norm Chirite - Managing Director, RedZone Capital; Terry Stewart - President and CEO, Rock and Roll Hall of Fame; Bea Perez - Vice President, Coca Cola; Bruce Eskowitz - President and CEO - Premier Exhibitions; Charles Goldstuck - President and COO, Sony BMG and Randy Philips - President and CEO, AEG Live.

Qatar Entertainment City

Through a US$ 500 million fund introduced and launched by ADIH, the first of these ‘Entertainment Cities' is currently being implemented in Lusail - State of Qatar. Entertainment City Holding Company is responsible for providing the complete infrastructure of each component within Entertainment City. The holding company will also sub-divide the land plot into parcels and develop blueprint packages. The projected return on investment (ROI) is 60%. The development promises to be a regional hub for luxury living, leisure and entertainment. Subsequent to year-end, this will rolled out in India with the launch of the India Entertainment City fund in 2008, aimed to raise financing for the concept's implementation in the heart of India's entertainment industry.

Porta Reef

A US$ 34 million fund was created and launched to finance the US$ 90 million freehold residential towers in the prestigious Reef Island, Kingdom of Bahrain. This two-year investment has an expected annual internal rate of return (IRR) of at least 20%. The total size of the fund is US$ 37,000,000 comprising 3,700,000 shares denominated at US$ 10 per share. ADIH's investment contribution was US$ 1 million. The fund witnessed huge demand and oversubscription at the closing in 31 December 2007. During the first sales' phase of the project to end users, sales totalled over 60% of the entire project.

Sunset Hills

The US$ 33 million fund was launched to finance the US$90 million residential compound located in the Al Areen development - south of the Kingdom of Bahrain. Projected annual IRR is a minimum 20% over a 30-month investment period with an expected project cost of US$ 90 million. Approximately 50% of the project has already been sold to end users.

Lagoon Leasing

The fund is a $24m 3-year fund which offers investors a minimum annual IRR of 20% by investing in 60% direct equity interest in the Lagoon Real Estate Development Company (LRED) which in turn owns a substantial number of commercial units in the strategically located Lagoon project that comprises of 119 commercial real estate units on Amwaj Islands, in the Kingdom of Bahrain.

Al Joud GCC Equity Fund

Towards the end of 2007, ADIH launched the Al Joud GCC Equity Fund, which will invest primarily in listed securities issued in the GCC countries, in accordance with Sharia Investment Guidelines. ADIH will invest USD 5 million as seed capital in the fund. ADIH's prudent investment strategy is evidenced in this investment as the fund's launch comes at an opportune time, given the strong real GDP growth rates that are being witnessed across the GCC, and growing clients' appetite in investing wealth that was traditionally invested outside the region back into their home countries. With robust domestic demand and an increasingly diversified industry base, the GCC provides investors a welcome hedge against volatile global markets which are expected to witness an upcoming slowdown.

Physical Expansion

ADIH Bahrain

The office was created to cater to investors from one of the region's most important financial hubs and to emphasize ADIH's intention to establish regional presence. The ADIH Bahrain representative office is regulated and under the governance of the Central Bank of Bahrain.

ADIH Geneva

Announced in 2007, this office signifies the ADIH expansion into the European continent in a confident and strong manner - by employing specialized and professional management team. The office will mainly be conducting Wealth Management services to clients based in the Middle East wishing to invest in Europe and providing a gateway for western investors into the GCC market. Source

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Abu Dhabi Investment Authority strikes deal with Washington

The US has reached an agreement with Abu Dhabi and Singapore on a set of principles for investment by sovereign wealth funds.

Washington hopes the move will help assuage concerns about such funds' transparency, while encouraging them to continue investing. It wants the agreement to serve as a stepping stone for wider-ranging efforts by the International Monetary Fund and Organisation for Economic Co-operation and Development.

The code of conduct could soon gain other adherents in the Middle East. The Qatar Investment Authority has signalled a willingness to sign up. Dubai International Capital also says it would consider adopting the code.

The agreement says sovereign wealth fund investment decisions "should be based solely on commercial grounds, rather than to advance directly or indirectly the geopolitical goals of the controlling government". It also stresses the need for "strong governance structures" for the funds, and respect for host country regulatory disclosure rules.

The US agreed that recipient countries "should not erect protectionist barriers", and "should ensure predictable investment frameworks" and "not discriminate among investors".

Clay Lowery, the US Treasury's assistant secretary for international affairs, told the Financial Times: "It's the first time to my knowledge that there's been a set of principles on this type of issue that include both sovereign wealth funds and a recipient country.

"In terms of transparency and disclosure what you saw today was two funds that are basically willing to step up and say, 'We believe there should be greater information and disclosure.'" He emphasised commitments in institutional arrangements and decision-making structures and financial information, notably asset allocation and benchmarks.

Abu Dhabi officials say the guidelines will simply formalise the oil-rich emirate's investment practices. The capital of the United Arab Emirates - a key US ally - has been embarrassed by rising hostility to such funds, fearing entanglement in wider concerns about more politically motivated Russian and Chinese funds.

One Abu Dhabi official says the US Treasury has pushed for the code of conduct as a means to assuage domestic concerns about sovereign wealth funds and to prevent the introduction of punitive legislation against these funds, which have traditionally held hundreds of billions of dollars in US T-bills and other US assets. Middle East funds are already diversifying away from the US to lower exposure to the weakening dollar and to seek higher returns from Asian markets.

The White House is keen to ensure continued investment at a time when US officials are seeking to prevent the credit squeeze from further damaging the economy. "We can protect our people against investments that jeopardise our national security, but it makes no sense to deny capital, including sovereign wealth funds, from access to the US markets," President George W. Bush said last week.

But some US Congress members worry about the economic power that could be accumulated by sovereign wealth funds from Arab states, Russia and China.

The 32-year-old Abu Dhabi Investment Authority is the world's largest, with between $500bn and $875bn (€324bn-€566bn, £252bn-£441bn) in assets, according to US Congressional Research Service estimates this year.

Singapore's sovereign wealth fund ranks second globally, with the Government of Singapore Investment Corp having estimated assets of between $100bn and $330bn and Singapore-based Temasek Holdings assets of more than $100bn. Source

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NBAD approves distribution of 40% cash dividends and 20% bonus shares

National Bank of Abu Dhabi (NBAD) Ordinary General Meeting, held on Sunday in Abu Dhabi, approved the distribution of 40% cash dividends and 20% bonus shares to shareholders listed in the Share Register held with Abu Dhabi Securities Market (ADSM) as on April 2nd 2008.

The meeting, held under the chairmanship of H.E. Khalifa Mohammed Al Kindi, Chairman of the NBAD Board, also reviewed and approved the directors? report, auditor?s report and the financial statements for the year 2007.

The Extraordinary General Meeting (EGM), which has convened after the ordinary meeting, approved establishing a ?Staff Share Option Scheme? and authorised the board of directors to execute its resolution.

It also approved the increase of the Bank's paid up capital resulting from the conversion of AED1.388bn of the 2006 Subordinated Convertible Note in accordance with the resolutions passed by the Extraordinary General Meetings on November 22nd, 2005 and September 5th, 2007.

"The Staff Share Option Scheme, one of the first in Abu Dhabi is an added proof that NBAD is committed to employing and rewarding top talent and treating its key staff more like owners than employees. The scheme aims to retain the Bank's best employees and attract new hires to NBAD" said Mr. Ehab Hassan, NBAD's Chief Human Resources Officer.

Mr. Michael Tomalin, NBAD?s Chief Executive commented:"We value our people. They are the key asset of our business? NBAD reported net attributable profits of AED 2,505 million or AED 1.57 per share in 2007, 19% up on 2006.

Operating income reached AED 3,665 billion, 24% up on 2006. Net Interest income, which represented 66% of operating income rose 19%; fee and other operating income rose 35% reflecting the focus on fee generating businesses.

Total assets reached AED140 billion at the end of 2007, up 38% from year end 2006 with customer deposits up 16% to AED 82 Billion and loans up 39% to AED 80 billion. Total capital resources reached AED 13.7 billion, up 20%, including AED 2.5 billion of subordinated convertible notes and without any new shareholder contributions. The Return On Equity at 26.3% in 2007 is ahead of the 25% average target set in the bank?s 5 year plan. Capital adequacy ratios remain comfortable.

"NBAD's financial results in 2007 were solid and a continuation of our good performance since 1999. The return on equity of 26.3% is one of the best in the industry, both locally and internationally, and in line with our 25% medium term objective said Mr. Abdulla Mohammed Saleh Abdul Raheem, NBAD's Senior General Manager and Group Chief Operating Officer.

?We expect positive growth in 2008. Our fully owned Islamic and real estate subsidiaries will be operational in 2008 and we plan to continue to invest more in the business. Although we have done well, there remains a great opportunity to grow much larger still? Mr. Michael Tomalin, NBAD?s Chief Executive concluded. WAM

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Emirates Takaful Insurance Company set up at AED150 million

A specialised Emirates Takaful Insurance Company has been set up at cost AED150 million, following the strategic partnership between Al Buhairah National Insurance Company with the Austrian Unika group.

Abdullah Jumaa Al Seri, a founding member of the new company, said at the press conference held at Al Buhairah Company Monday that Al Buhairah insurance company conducted a detailed field study for three years on establishing "solidarity insurance on life and all types of insurance".

He added that the study resolved existence of a strategic partner with advanced insurance programmes, indicating that "based on these findings an agreement was struck with the Austrian Unika group to set up the Takaful insurance company with capital of AED150 million in Dubai emirate. It will provide life insurance and medical treatment to meet the needs of UAE nationals and expatriates alike".

Al Seri added that the aim for striking agreement with the Austrian group is to provide health insurance coverage abroad through medical network to enable insured patients get direct treatment.

Nader Al Qadoumi, manager general of Al Buhairah insurance company, said that his company has 20 per cent of the new company's shares, Unika group with 15 per cent, while 10 per cent has been allocated to other experienced companies in investment sector, adding that 55 per cent of the shares will be subscribed to the UAE and GCC nationals with effect from March 23, in National Bank of Abu Dhabi. (WAM)

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$10m company to boost offset investments

The Offset Programme Bureau (OPB) is one of the largest establishments created by the UAE to secure foreign capital as part of its long-term strategy to diversify the economy away from reliance on oil.

The offset system requires foreign arms suppliers to invest part of the value of the order in the UAE. The system applies to the country's latest aircraft deal with Lockheed Martin involving the purchase of several F-16 fighter jets, the OPB's CEO Mohammed Saif Al Mazrouei said in an interview with Emirates Business newspaper.

Following are excerpts from the interview: What is the total value of your projects so far? The OPB has implemented more than 30 successful joint ventures with a combined paid-up capital of AED7 billion.

What measures have you taken to facilitate investment.

To furnish additional options to contractors, the bureau has set up a $10 million (AED36.7m) Alfia Investment Company. The aim of this fund is to enhance economic development. It has three core objectives: investing in public and private ventures, creating wealth to enhance the overall development of the country and creating ample employment opportunities. Focusing on the core objectives, Alfia has diversified its investment profile into endeavours ranging from third-party administration of medical insurance to the production of precast aerated concrete and supply of vehicle tracking systems.

Could you provide more details about some of these ventures? Nextcare Administration Services (NAS) was set up to run healthcare insurance companies in the UAE and other GCC and Middle East countries. The German-Emarati Company Bena, based in Abu Dhabi, produces precast aerated concrete and has a capacity of 1,000 cubic metres per day. Trakker Middle East is engaged in the sale, marketing and distribution of products and services related to wireless fleet management, tracking, telemetry and geo-fencing, including management of information and security systems supported by a 24-hour call centre. National Medical Solutions (Mahaleel), located in Mussafah, is building a facility to make intravenous products. Once completed it will produce all types of items, including plasma expanders, dehydration fluid, nutrition and electrolyte liquid in bottles. And the National Training (Tadreeb) aims to bring international standards to vocational and professional training throughout the UAE and the GCC.

Are these and other ventures profitable? Most of the projects set up under the offset programme have started to generate profits for their shareholders. In addition they are boosting and diversifying the national economy and creating thousands of job and training opportunities for UAE citizens. Other joint ventures are engaged in shipbuilding, district cooling, fish farming, aircraft leasing, medical waste management and business centres.

What projects are planned for the near future? We have several projects in the pipeline with more appearing all the time. Our projects team is currently adding the finishing touches to various joint ventures, ranging from industrial development, manufacturing and construction to financial services. Each project will be announced separately.

Does the offset system apply to the F-16 fighter deal with the UAE? Lockheed Martin entered into negotiations with the government and the OPB and as a result of this, arrangements were made for them to fulfil their offset obligation to the UAE.

Do you plan to expand the offset programme to other areas apart from the military sector, and what is the present percentage required from international investors? We are satisfied with military contracts for the time being in view of the substantial amount of expenditure in this sector. As far as the required percentage, a company is required to add economic and commercial value to the UAE economy, equivalent to 60 per cent of the cost of a contract. Of course, under UAE commercial law a foreign contractor's share in any single project must not exceed 49 per cent.

Which are the major companies you have set up and what is their role in the UAE economy? And what part has the programme played in the UAE economy and job creation? Recently we announced the establishment of Tawazun Holding, an investment company that targets the acquisition of companies offering innovative products and services through strategic partnerships. During the past five years more than 10 companies have been set up, including - in addition to those mentioned above - Trans Continental Industries, Danway Fusion Glass, Schmidlin, Gulf Turbines Services and Gulf Energy Maritime. The OPB also created four joint-stock companies with thousands of citizens as shareholders, bringing in technical expertise and knowhow to the country.

The 30-plus joint ventures created by the OPB also provided lucrative job opportunities, high-quality training and promising careers for thousands of UAE citizens. Living up to the OPB's ultimate goal of adding value to the economy, the projects have had a significant impact on the UAE's industrial capabilities and economic diversification drive.

What projects are Tawazun engaged in or planning? Tawazun is aggressive and upbeat on strategic, focused and commercially viable acquisitions and partnerships in both the industrial and commercial sectors. Tawazun already has many projects on the cards. It recently acquired the assets of Caracal International, the first national arms manufacturer in the UAE. And in late 2007 Tawazun joined Al Jaber Trading Establishment - part of Al Jaber Group - and Rheinmetall Munitions Systems in a venture to build the UAE's first munitions factory to serve the needs of the armed forces in the country and the region with a total investment of AED268m.

Do you have any plans to expand your activities to other countries and sectors? The OPB is currently focused on the UAE. However, some projects are now exporting their products to other markets. For example Trans Continental Industries, the UAE's first facility for manufacturing buses and other components, is a joint venture implemented under the offset programme.

The company exports its products, including high-quality bus bodies, base structures for chassis, doors, seats, lamps and ventilation systems to Qatar and Oman. The facility began its production in 2006 when the first UAE-built buses rolled off the production line. Trans Continental?s first customer, Petroleum Development of Oman, took delivery of 10 air-conditioned coaches. A second batch of 20 coaches was shipped to customers in Qatar.

And Trakker Middle East, the first fleet management and vehicle location-based services company in the GCC, is considering a foray into other markets, including Saudi Arabia, Qatar and Jordan, after becoming a leader in the field in the UAE. NAS has already extended its network to include many healthcare facilities in Qatar, Kuwait, Bahrain, and Oman, all providing members with direct-billing facilities and therefore reducing the need for cumbersome reimbursement procedures.

Have you ever issued bonds or are there any plans to do so? There are no plans to issue bonds, but there are huge investment opportunities for defence contractors, such as Project Blue that structures the acquisition of aircraft. (WAM)

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