Dubai Islamic Bank Dubai Islamic Bank Investor Relations Presentation - PowerPoint PPT Presentation

Dubai Islamic Bank Dubai Islamic Bank Investor Relations Presentation YE 2009 Investor Relations Presentation YE 2009

Disclaimer The information provided in this presentation should not be used as a substitute for any form of advice. Decisions based on this information are for your own account and risk. Although DIB attempts to provide accurate, complete and up ‐ to ‐ date information, which has been obtained from sources that are considered reliable, DIB makes no warranties or representations, express or implied, as to whether information provided is accurate, complete or up ‐ to ‐ date. Corporate Development 2010 2

Contents 1 Background 2 About DIB 3 DIB Financials 4 Peer Group Analysis 5 Stock Information Corporate Development 2010 3

United Arab Emirates Snap Shot  Country Rating Aa2 (stable) by Moody’s  Federal Structure 7 Emirates  Abu Dhabi & Dubai largest contributors to GDP  GDP US$ 269.9 bln 2008E  2 nd largest economy in Arab world  Population 4.7 million  80% expatriate  Per Capita Income US$ 57,249  One of the highest GDP per capita in the world  Oil & Gas 5 th largest proven oil reserves in the world; expected to last for over 100 years  4 th largest gas reserves in the world  Least oil & gas dependent economy in GCC region  Fixed Pegged at AED 3.673 = US$ 1 for past 23 years Sources: IMF Regional Economic Outlook, SCB Global Research, UAE Central Bank 4 Moody’s,, Ministry of Economy & Planning, UAE, CIA

Banking Sector Capital Adequacy Ratio for Banking Overview System Sector comprises of 51 banks  23 national/local banks; 28 foreign banks  Sector of strategic importance to Govt.  Direct/indirect govt. ownership in majority of  national banks Precedents available for Govt. support  Sector dominated by the national banks  Top 6 banks account for approximately 60%  of total banking sector assets Corporate Development 2010 5

Islamic Banking  Islamic banking is one of the fastest growing industry segments in the Financial Services sector  Growth momentum, both in the Arab world and globally, estimated at 20% p.a. plus  Assets of the top 500 Islamic banks expanded 28.6% to total $822 billion in 2009, compared with $639 billion in 2008, according to publicly available information  a bright outlook is likely worldwide for Islamic finance in 2010, on the back of steady growth and geographic diversification.  Islamic Sukuk Issuance expected to hit US$200 Billion by 2010  Islamic Sukuk Issuance to increase by 30 ‐ 35% annually while Islamic funds to increase by 22% annually  According to Standard and Poor's the value of Islamic Banking will reach $4 trillion in the next 5 years  Targeted regions include GCC, South Asia, South East Asia and select niche markets  Entry by Global Commercial/ Investment banks in this sector  Issuance of Sharia ‐ compliant sukuk notes currently accounts for about 10% of the global Islamic finance industry  Cumulative total issues topped the symbolic mark of $100 billion at year ‐ end 2009, compared with less than $500 million at year ‐ end 2001 6 Source: Moody’s and Standard & Poor’s

Key Islamic Banking Players Key Players in the Islamic Banking Market in UAE / Middle East Region Existing Players New Entrants Corporate Development 2010 7

Contents 1 Background 2 About DIB 3 DIB Financials 4 Peer Group Analysis 5 Stock Information Corporate Development 2010 8

DIB International Presence  62 Branches UAE  Reaching 900,000 Retail customers  37 Branches Pakistan  16 Major Cities  Jordan Dubai Islamic Bank Recently Jordan Launched and first branch opened  DIB Representative office Turkey Longest track-record in Islamic Banking In-house Expertise   World’s first Islamic bank established in 1975 DIB brings together globally recognized expertise  to offer an unparalleled quality and range of Today DIB is one of the largest Islamic financial Islamic banking services institutions in the world   Coupled with its well-respected Sharia expertise, DIB has embarked on an ambitious international DIB has become the bank of first choice for expansion plan recently setting up offices / operations in customers looking for Sharia compliant solutions Sudan, Pakistan, Turkey, Jordan and Iran. Several other countries are currently being evaluated Corporate Development 2010 9

Formidable name in Islamic Banking 10

DIB Branch Network Ras Al Khaimah – 4 Branches Umm Al Quwain– 1 Branch Ajman– 2 Branches Sharjah– 13 Branches Dubai – 27 Branches Fujairah – 2 Branches Abu Dhabi – 13 Branches Corporate Development 2010 11

DIB Group Structure. 100 % owned Strategic Stakes Corporate Development 2010 12

DIB Core Business Operations • Largest business Group within DIB • Full range of products and services Retail & Business • Customer segments: Mass Affluent, HNWI, SMEs Banking • One of the largest Retail customer base in UAE • Market leaders in Islamic products • Large Corporates & Middle Market segments is primary focus Corporate • Financing for Trade and Manufacturing and Infrastructure Banking • Cash Management capabilities Real Estate, • Financing of Real Estate, primarily within ‘non ‐ freehold’ area Contracting • Financing to contractors in the real estate, oil, gas, power and water sectors Finance • DIB Capital incorporated in Dubai International Financial Centre Investment • Investment banking activities such as project finance, loan syndication, capital markets, asset management and structured finance as well as Corporate Advisory Services Banking • Global leaders in Sukuk issuance: #3 in the Bloomberg league table in 2006 • Various products/offerings under Sharia umbrella such as: • Foreign exchange services Treasury • Asset ‐ liability management • Islamic derivatives Corporate Development 2010 13

Medium Term Strategic Agenda 14

Portfolio Diversification, Business Overview Segmented Revenue; % of Total Sectorial Exposure of Financing & Investing Assets (2009) Revenue (Q4 2009) • Real Estate Exposure 97% of which is to ‘non • Real Estate Revenue only relates to property freehold’ sector development and other real estate investment Corporate Development 2010 15

Mega Deals: Capital Market Transactions DEWA JAFZ DP World AED 1.1 Billion Sukuk AED 3.20 Billion Sukuk AED 3.60 Billion Sukuk AED 3.75 Billion Sukuk AED 7.50 Billion Sukuk Joint Lead Manager & Joint Lead Manager & Joint Lead Manager & Joint Lead Manager & Joint Lead Manager & $ 1.5 billion Sukuk Bookrunner Bookrunner Bookrunner Bookrunner Bookrunner Joint Lead Manager July 2008 June 2008 May 2008 June 2008 Nov 2007 & Joint Bookrunner June 2007 $ 1.00 billion Emirates Airline Dubai Metals & Ports, Customs & Free Zone Qatar Real Estate Commodities Centre Corp., UAE $3.52 Billion Sukuk Investment Co. Sukuk $550 million Sukuk $ 200 million Sukuk $3.5 billion Sukuk Joint Lead Manager Joint Lead Manager & $270 million Sukuk Mandated Lead Manager Mandated Lead Manager Lead Manager & Joint & Book runner Bookrunner Joint Lead Arranger and & Joint Bookrunner & Joint Bookrunner Bookrunner June 2007 Nov 2006 Bookrunner June 2005 May 2005 June 2006 Aug 2006 Govt. of Dubai DIFC Government of Pakistan LMC - Bahrain Islamic Development Bank Govt. of Malaysia $1 billion Debut Intl. Sukuk $600 million Debut Mandated Lead Manager International Sukuk $600 million Sukuk $250 mn Sukuk $500 million Sukuk $1.25 billion Sukuk & Joint Bookrunner Co-Manager Co-Lead Manager Co-Lead Manager Joint Lead Manager Co – Manager Nov 2004 Jan 2005 2002 Jun 2004 Jun 2005 Jun 2007 Corporate Development 2010 16

PF & Syndications Transactions DEWA $ 2.2 billion equiv. Borse Dubai PFZW ICD DEWA Al Jaber Group Multi currency $ 6 billion $ 2.50 billion $ 1.25 billion Multi Tranche Ijara & $ 2.2 billion equiv. $ 400 million equiv. Dual Tranche Conventional Dual currency Conventional Dual currency Conventional Conventional Facilities Dual currency Ijara Facility Dual currency Ijara Facility & Islamic Murabaha Facility & Islamic Facility & Islamic Facility Joint Mandated Lead Joint Mandated Lead Joint Mandated Lead Joint Mandated Lead Joint Mandated Lead Joint Mandated Lead Arranger & Bookrunner Arranger & Bookrunner Arranger & Bookrunner Arranger & Bookrunner Arranger & Bookrunner Arranger & Bookrunner April 2008 April 2008 Sep 2008 Feb 2009 April 2009 Nakheel Dolphin Energy, UAE Tabreed, Abu Dhabi BAPCO – Bahrain Aluminum Bahrain Aldar Properties PJSC $ 2.1 billion $1 billion Istisna’ & Ijara $ 1.85 billion Mandated Lead Arranger $330 million Ijara $150 million financing Finance Facility Syndicated Ijarah Facility $100 million Ijarah Joint Lead Arranger and & Joint Bookrunner Mandated Lead Manager Co-Lead Arranger Arranger & Bookrunner Sole Arranger Sep 2005 Bookrunner Aug 2007 April 2007 April 2008 Mobily, Saudi Arabia Dubai Ports Authority Qatargas II Pertamina Umm Al Nar, Abu Dhabi $2.35 billion financing $530 million financing $322 mn financing $150 million financing $ 250 million Facility Joint Lead Arranger Mandated Lead Arranger Co-Lead Arranger Sole Lead Arranger Co-Arranger Oct 2004 Dec 2004 Dec 2004 Corporate Development 2010 17