Tanfeeth Overview

UAE Economic Update (cont'd) Highlights ■ EIBOR rates have come down since 2011 while LIBOR rates have risen marginally ■ There is a pickup in bank deposits however bank lending remains anemic ■ CDS spreads for Dubai has declined while it declined a bit and then picked up again for Abu Dhabi in the previous quarter 500 Trends in CDS spreads 450 170 400 150 bps 350 130 300 110 250 200 90 Jan-12 Feb-12 Mar-12 EIBOR - LIBOR spreads 6 Source: Bloomberg, Emirates NBD Research Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Dubai (Ihs) Abu Dhabi (rhs) 70 Spread EIBOR ―LIBOR 5 Bank deposit and loan growth 18 4 16 Bank deposits Bank Loans 14 3 Bps (in 10s) 2 0 -1 -2 Jan-08 YoY Growth % NO8642 12 10 -2 Source: Bloomberg Emirates NBD Jan-09 Jan-10 Jan-11 Jan-12 Source: UAE Central Bank Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 5

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