In adherence to its strategy to become one of the leading financial players in the region, AAIB capitalized on its two branches in the UAE to act as a regional hub for well-studied expansion.  AAIB’s activities through  its Emirates branches has been extended beyond the UAE  to encompass the whole GCC  comprising Kuwait, Qatar and Kingdom of Saudi Arabia.

Amid concerns over the fallout from Dubai’s recent debt problems, misguided news and inaccurate information regarding the magnitude of AAIB’s exposure to Dubai entities in general and to Dubai World Group in particular, it is essential to clarify  the following:-

As of 30 November  2009; Arab African International Bank’s net exposure to all Dubai entities  does not mark  more than 4% of  total AAIB’s lending portfolio including the exposure to  Dubai World Group which  is less than 2% detailed as follows:-

·          Nakheel

o         Syndicated   Loans                      :   $ 54.0 MM

o         Bond                                               :   $   9.8 MM

·          Dubai World Group

o         Syndicated  Loans                       :   $ 35.0 MM

The rest  of the exposure to Dubai portfolio is mainly financing to other resilient sectors such as retail, telecommunication and investment projects.

AAIB is closely monitoring the situation and will take all necessary steps to ensure maintaining the strength of its balance sheet, in prudent compliance to all regulatory measurements, both in Egypt and the United Arab Emirates.

It is worth noting that as at 30 September 2009, AAIB Net Profit recorded US$ 128.3 MM yielding a Return on Equity  of 32%  one of the highest  in the region.

AAIB affirms its  a full commitment to the highest standards of transparency and timely dissemination of information to all its stakeholders and  public.