The conservative credit policies adopted by the commercial banks and financial institutions continued during the year 2011 leaving direct and indirect impacts on the investment environment in the state including the industrial investment.

Accordingly, the bank during this year has focused on providing more facilities to the industrial investors in an attempt to encourage the industrial investment especially that the local economy has successfully managed to survive the repercussions of the crisis. The rise and stability of the oil prices during the year enhanced the investors trust and increased the liquidity in high rates compared to 2009.

On the other hand the bank has taken into consideration the moral impacts of the crisis especially that the foreign media portrayed a very gloomy picture of the economic situation in the state. This has prompted Emirates Industrial Bank to focus on researches and studies published in the bank monthly bulletin with the aim to provide an objective outlook on the impacts of the international financial crisis on the local economy. This has clarified a number of facts leading to the enhancement of trust in the UAE investment environment and helped in attracting more local and foreign investors who remained uncertain about the economic situation in general.

In financing the bank has studied 24 industrial projects this year 12 of which were approved and provided with industrial loans and facilities for a total amount of AED 65.8 Million.

By adding the amount of finance this year to the total amount of finance during the past years, the number of the projects for which the bank has studied financing applications reached 895 projects out of which 652 were financed by a total amount of AED. 4925.89 Million.

With respect to the loans and facilities disbursed in 2010 the amount was AED. 201.42 Million compared to AED 331.52 Million in 2009.

By adding the loans and facilities granted this year to the total amount of loans and facilities granted in the past years, the total of the loans and facilities amounted to AED. 3773.42 Million until the end of 2010 as stated in the following table:

Number of Loan Applications (1999-2010)

Volume of Loans and Facilities (1999-2010)
(AED Million)

By the end of 2009, the distribution of loans and facilities among various industrial sectors appeared as per the following table:

Sectorial Distribution of EIB Loans & Facilities

To ensure the soundness of the financial and management situation of the financed projects, the bank officers paid several field visits to such projects and filed reports to the bank management.

By the end of 2010 the number of loans and facilities granted to the projects and fully recovered was 336 for the value of AED. 1831.78 Million in addition to the bank service and administration fees resulting therefrom. Most of the borrowers have repaid the installments of such loans and facilities at their dates of maturity.

In addition to the financing operations, the bank continued playing its outstanding role in preparing studies and researches and drafting all data related to the economic and industrial development in the United Arab Emirates and AGCC countries. This is one of the tasks carried out by the bank in supporting the developmental process in the state.