Credit Quality and Financial Performance
Outlook
Emirates NBD
■ Conditions in the local economy have continued to improve in Q1 2011:
Economic signals offer evidence of take-off in non-oil economy, particularly in trade, logistics and hospitality
O Oil prices hold strong above USD 100 per barrel
Regional unrest temporarily took a toll on local markets in Q1 2011 as global investors cut risk
across MENA, although conditions have improved considerably since
O Local equity markets rebounded considerably since early March from weakness in January and February
In fixed income, a rally that began in mid-March has pushed Dubai spreads tighter, with Dubai 5-yr CDS at
just under 370 bps, their lowest level since late-2009
■ UAE real GDP growth of 4% expected in 2011:
O World trade is expected to continue to strengthen, benefitting Dubai in particular given its strong
infrastructure, transport and logistics networks
The financial sector is slowly beginning to lend again with credit growth starting to pick up
High commodity prices are expected to continue to benefit the fiscal account and infrastructure development
expenditure
O Capital markets in the region are showing evident signs of thawing
■ Emirates NBD is well placed to take advantage of the expected improved economic conditions
The Bank has a clear strategy in place to invest in and take advantage of growth opportunities
Liquidity is strong and greater visibility of and comfort with asset quality allows selective risk-taking
Emirates NBD
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