dunia Annual Report FY 2010

Success through excellence
Third Annual Report
Financial Year 2010
Contents
Chairman’s message
5
CEO’s message
7
CORNERSTONES
13
The dunia story
15
The dunia ascent towards excellence
19
Board of Directors
21
Management Board
25
MILESTONES
33
Achieving growth and sustainability through excellence
35
Execution excellence through a balanced scorecard approach
36
Our franchise
43
Our people
61
Our processes
89
Our financials
99
THE STORY AHEAD 113
AUDITED FINANCIALS
117
"At dunia, the customer is the core of our focus. We go the
extra mile to always deliver with excellence for our customers."
Rajeev Kakar
Executive Director & CEO
"We move forward together as one at dunia, in our ardor
to fulfill above and beyond all that we set out to achieve."
Salem Rashid Al Noaimi
Chairman
Chairman's message
dunia’s edge since inception has been its
relentless focus on customer centricity…
At dunia, three years is tantamount to a lifetime of experience. We have emerged as
a financial stronghold in this challenging sphere with due diligence, concerted efforts
and consistent adherance to the principles on which we built our foundations.
dunia’s edge since inception has been its relentless focus on customer centricity.
This lofty ideal was put to the test through its adoption at every level of the
institution’s functioning, thus creating a successful model which resulted in
empowering all its customers and employees, enabling their success and ultimately
enriching the lives of all.
Today, dunia and its talented employees stand tall in every sense – in the upkeep of
their commitments, in the expansion of their collective knowledge, skills, technology
and manpower, in their relationship with customers and all stakeholders, and in their
responsibility to society.
We now move forward together as one, in our ardor to fulfill above and beyond all
that we set out to achieve.
Salem Rashid Al Noaimi
Chairman
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CEO's message
Dear friends and colleagues,
While dunia is still a young company having traversed a short journey of less than
3 years since its inception, experientially it seems like a much longer journey that
has been through a full business cycle of creation, growth, realignment, challenges,
stresses and successes. 2008 was our year of inception. We were new and rearing to
make a difference in ways that no other institution had ever hoped to.
Our wholesome dedication and ardor to change the way customers were treated
injected a surge of fresh appeal to people in ways that they had never dreamed of.
We made our mark and earnestly treated everyone to an unparalleled experience of
world-class service, comprehensive solutions, supported reliably by workflow and
technology, delivered with excellence and one where the customer always comes
first – a truly unique approach which we call the 'dunia difference'.
2009 was our year of creativity, innovation and constant realignment in a rapidly
transforming world. We were willing to go the extra mile for our customers, and
invest in building capabilities that would allow us to succeed in the future, and
to offer them with the highest standards of ethics and integrity. In short, we were
We made our mark and earnestly treated
everyone to an unparalleled experience of
world-class service, comprehensive solutions,
supported reliably by workflow and technology,
delivered with excellence, and one where
the customer always comes first – a truly unique
approach which we call the ‘dunia difference'…
willing to go back to basics – which many in the world had forgotten – and to disrupt
the status quo to make a real difference in a fragile and fast changing financial
services industry. The dictates of the difficult and demanding economic environment
made us rethink and realign ourselves to suit the fiscal trends in order to not simply
withstand but to also apply ourselves to benefit our customers and clients. The new
changing order meant that many institutions had cut back on their exposure, and
were unable to serve or were extremely conservative and cautious thus adversely
affecting their customers and employees. dunia, and its unique and talented team
of professionals, then made a conscious decision to provide “more with less” to
combat the stress of the times. We worked even harder and smarter. We innovated,
renegotiated, cut costs and worked with greater focus and passion to continue
providing the best of services and products to our customers.
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8
2010: The year of consolidation
This year has been a defining year for dunia. In many ways, it has been remarkable
for dunia in terms of the growth that we have achieved as a whole, not just for all of
us at dunia but also for all the people in association with us. We had just weathered
the uncertainties of the previous year and had surfaced intact with great élan. We
decided as a team to relentlessly continue in the upkeep of all our promises without
compromise, which meant that we had to take stock of our strengths and readjust
to excel in our commitments to fulfilling the saving, protection, transaction and
borrowing needs of our clientele.
We decided as a team
to relentlessly continue
in the upkeep of all
our promises without
compromise…
We made a conscious decision to not take for
granted our already established state-of-the-art
operational platform and resolute infrastructure, and
our governance, risk and analytic capabilities, but to
continue to build on them to enhance them even further.
We grew in capacity, resource and manpower while
continuously expanding our operations and now operate
out of 19 financial centers in the three emirates of
Abu Dhabi, Dubai and Sharjah, and stand poised to take
on even more ahead.
"Desire is the key to motivation, but it’s determination and commitment
to an unrelenting pursuit of your goal - a commitment to excellence that will enable you to attain the success you seek."
Mario Andretti
Strengthening our pillars and building on our assets
As always, the customer is the core of our focus around which we build all our
capabilities, to serve and deliver quality products and services. Our focus on putting
in place a consistent and sustainable design ensures that we have the right cogs in
place for the continuous flow of daily operations. This helps us not only surpass our
financial goals but also increase the shareholder value. A constant review and
upgrade of the most critical and integral components of the business; our people, our
process and our franchise continues to be a norm, as it was through every quarter
of 2010.
How we fortified our core strengths in 2010
 We
built a talented and well-trained team that stands strong at 700+ in count,
through the use of stringent selection processes headed by our seasoned senior
management and functional specialists who personally ensure that the manpower
recruited always falls in line with the principles of the business.
 We
ensured an eclectic mix in terms of gender, nationality and experiences as the
standards for recruitment to strengthen our proven model of synergy in diversity.
 We
worked passionately to attract UAE National talent to our team, and built
special programs that made working and learning at dunia extremely beneficial,
and worked towards contributing to the development and growth of UAE
Nationals to develop the long term leadership potential of the company.
 Partnering
with world class institutions enabled us to recruit the best of talent
thereby augmenting the already experienced workforce with a wider outlook
while honing their latent skills through experience.
 We
further enhanced our state-of-the-art in-house training and development
center that encouraged talent and helped the people build on their skills and
capabilities along with ensuring coverage of 98% of employees through training,
aimed at helping improve both performance and potential of our employees.
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10
How we
fortified
our core
strengths
in 2010

We continued our focus on building a conducive environment that helps retain talent with
regular appraisals and goal setting processes that constantly encourage people to strive harder
and aim higher, helping them develop parallel to the growth of the company.
In parallel, our expenses (excluding one-timers) grew only 2%, as we employed an aggressive
strategic cost management approach to cut down smartly on expenses in line with our intent to
become a low cost provider, despite strong top-line growth.

We continued to enhance our capacity in line with our growth and the future potential in
the marketplace, so as to continue to build on our existing functional capabilities across
operations, technology and risk management to enable success.
Our success at growing revenues strongly, while employing a spend-smart approach to expenses,
helped us deliver a strongly positive operating leverage of 131% (excluding one-timers) in 2010 as
compared to the previous year.

Our ongoing periodic subjecting of our processes, controls and risk management to voluntary
and mandatory reviews brought on the necessary assurance around risk management,
governance, process controls and business practices, and this comprehensive focus resulted
in a 100% compliance with all regulatory requirements in product design, process control
and delivery.
Having launched our business at the inception of the global crisis, our early and timely focus on
right customer selection and a strong risk management approach, paid strong dividends, as we
were able to successfully bring the cost of credit consistently down to a low level of 15% as
compared to the previous financial year 2009, which saw a higher credit loss cost of 26%, in the
midst of the global and local crises in the macro-environment.

We continued to build on our customer focus and were voted by a leading publication to be
in the top 10 organizations in the UAE for our customer focused service approach. We were
judged us amongst other leading players on the service attributes of responsiveness and timely
resolution of customer complaints.

With the second full year of operations, a range of new innovative products and offerings
were introduced to ensure a higher and sustainable revenue base, one example of which is the
commencement of our offer of payroll processing services as an approved agent of the Central
Bank of UAE to support the important national objective of financial inclusion.

We positioned ourselves even stronger as a depository institution offering corporate
customers with attractive solutions for their surpluses, while providing value added services
through dedicated relationship management, collateralized letters of guarantee, loans and
products at preferred terms for their employees, backed by 24-hour access and world class
service. Our service focused and value based pricing approach makes us a preferred choice
amongst companies for their deposit needs.

We worked towards creating strong strategic alliances that released a plethora of innovative
products which in turn increased the rate of customer acquisitions by enhancing customer
value and relevance.

We further intensified our community involvement for the greater good of society through
‘dunia Cares’, our social initiative. We understand that with consumer choice being increasingly
shaped by a company’s reputation and its impact on society, such an approach ensures longer
term sustainability, and a healthier acceptance and support from all stakeholders, employees,
customers, governments, investors, the media, and the community in general.
In summary, we worked relentlessly to build an even stronger brand, through focus, energy,
passion, creativity, innovation, integrity and execution excellence – one that would truly
empower people, enable success, and enrich lives.
Our financial strategy and performance in 2010
In 2009 we had a challenging plan in place for 2010, and I am proud to acknowledge that our
performance has been well on track and, in some ways, even ahead of what we had planned.
We achieved a revenue growth of 132% as compared with 2009. We improved the quality of our
revenue by adding new products, diversifying our earnings, and creating new fee opportunities
and a granular portfolio mix to avoid any concentration risks.
We continue in all
humility to remain
focused on always
delivering on our core
objectives of serving
our customers, adding
value to our employees,
changing lives, building
futures, ensuring smiles
and developing human
potential in even more
ways…
A combination of this strategy, and its execution, helped us achieve
strongly improved profitability where we closed the year better by
AED 28 million, versus the prior 2009 financial year.
Our quarter on quarter improvements are even stronger, as our
revenues continued to grow with the last quarter of 2010, being
ahead on Net Income of the corresponding quarter in 2009 by
AED 18 million, ensuring that we have built a strong and more
reliable trajectory towards our goal of achieving break-even on
Net Income and full profitability in 2011 – the year ahead.
Our future into 2011
We are poised to achieve great things in the year ahead. Our
performance has consistently and substantially improved year
on year and we are well on the way to our goal to strive towards
becoming one of the substantive players in the market. While we
aim to work towards ensuring that we deliver in the year 2011,
our first year of profitability, we continue in all humility to remain
focused on always delivering on our core objectives of serving our
customers, adding value to our employees, changing lives, building
futures, ensuring smiles and developing human potential in even
more ways, just as we have attempted to do consistently since our
inception in 2008.
A spirit of dedicated performance, consistent efficiency and diligent hard work has become the
norm at dunia and to this effect, I’d like to express my gratitude to the dunia team and the
employees for their commitment, hard work and ongoing support at various levels. I am also
extremely thankful to all the board members, shareholders, our bankers and the regulators for
the guidance, strength and rigorous support and encouragement at all times, as it has constantly
spurred us on forward in our journey towards making a difference.
On a personal level, I am extremely excited about moving into 2011. Our growing capabilities
and continued performance trends help renew and fortify our confidence in our institutional
and collective faculties to take on the challenges and opportunities that the new economy and
markets bring forth.
With my warmest personal regards,
Rajeev Kakar
Executive Director & CEO
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C O R N E R S T O N E S
Creating excellence…
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The dunia story
On September 29th, 2008, Dunia
Finance LLC, opened its first branch
to customers. The market was said to
be saturated and the conditions were
beginning to get unpredictable and
turbulent. The company supported by
leading shareholders and a seasoned
management team braved on, though its
business model was not as yet tested in
the Middle East.
The UAE, with its 6 million population
from various ethnicities and
nationalities, presented a unique
opportunity to build a business based on
dunia’s approach. The banking landscape
in the country consisting of over 50
banks and financial institutions often
led to the perception of the country
being “over banked”. While the overall
GDP per capita still ranked as one of
the highest in the world, the UAE had
about 70% of the population either
underserved or completely ‘un-banked’.
The market was competitive and yet had
a lot of unmet customer demand.
Right from the start dunia invested in
setting up a world class infrastructure,
attracting the right talent, instilling
across the organization the philosophy
of customer service and designing
customer centric financial solutions and
processes.
15
For the next couple of years, as the
UAE market went through an economic
slowdown, dunia not only continued
to serve its customers but also posted
solid quarter on quarter growth. More
than 700 employees from across the
world joined dunia and believed that
financial solutions could be offered
differently. dunia’s infrastructure and
processes allowed a seamless customer
experience. With a two-tiered Corporate
Governance structure, a robust risk
framework and an excellent analytics
capability, the company focused early on
balanced growth to ensure reliability and
predictability of performance.
With time, dunia’s range of financial
solutions expanded to fulfill the various
needs of customers - transaction, saving,
borrowing and protection needs. The
several awards that were conferred early
in its lifecycle affirmed the fact that the
company was indeed doing something
very different in the market.
This is how dunia started off as an
unknown name in the market less
than three years ago, to now being
increasingly recognized and known as a
customer focused financial partner.
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Founded on successful heritages
dunia’s heritage through its
shareholders stems from two
of the world’s most prominent
heritages – namely the UAE and
Singapore. The United Arab
Emirates and the Republic of
Singapore are both countries that
reached their economic state
of glory in very short spans of
time with sheer grit, courage and
foresight. They are both young
nations that moved upstream
fairly quickly as they were driven
by the sheer will to excel and
prove themselves as successful
models that stood at par with
seasoned and proven economies.
The UAE became an independent
sovereignty in 19711, while
Singapore commenced selfgovernment in 19651.
The UAE’s conditions were
barely conducive to indigenous
production while Singapore, a
city-state, had very little land
to spare for any large scale
manufacturing, leave alone
agrarian pursuits. Both economies
opened themselves up to large
expatriate work forces, currently
81%2 and 36.3%3 respectively for
the UAE and Singapore, to create
an open ground for the trading
and commercial enterprises that
would make them key players
in their regions and ultimately,
international entrépots.
The UAE and Singapore have
populations of 8.19 million4 and
5.07 million3 respectively while
they share high statuses with the
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world’s highest GDP per capita
incomes, ranking at number five
and number fifteen respectively.
They are very similar economies
in the way they turned their
adversities to their advantage,
besides capitalizing on them to
reach world class states of being.
The UAE and Singapore’s sound
infrastructure and world class
facilities made their mark in the
global arena and made them one
of the top business destinations
of the world. Both the UAE and
Singapore invested heavily at the
early stages in setting up the basic
framework which would support
accelerated growth. Over the
years, both these economies have
seen their upturns and downturns,
however, the groundwork done at
the nascent stages have ensured
that these economies go on an
ever upward trajectory.
dunia’s heritage is represented
by the success of these two
countries. Both the UAE and
Singapore have set the highest
standards of quality and
achievement and dunia emulates
these very traits. We have a
legacy of excellence that comes
from the two countries that
represent dunia’s shareholders.
To build on this legacy, dunia
focused on setting up a bedrock
of enhanced processes,
customized systems and
capable people. It is in some
ways our legacy that drives us
to greater heights as we deliver
customized solutions to financial
requirements of every individual,
provide growth and stability to
organizations and finally make
a reality of people’s dreams and
aspirations.
Breakthrough
in tough
economic times
dunia’s overall focused strategy
was created with the elements
of quality governance and risk
management, stringent customer
selection, unique product offering,
value based pricing with the
selection and retention of superior
talent, all bound together with a
commitment to customer service
and satisfaction.
Unrelenting to the dictates of the
current financial markets norm
of ‘operating to survive’, dunia
instead ‘innovated and strategized’
to succeed. This philosophy was
spread across the organization.
The resultant focus brought forth
growth and converted predictable
success into an assured reality.
The resurgent
Middle East
The advent of the oil fortunes
from the early 1960s
converted the Emirates
from a subsistent pearl and
fishing economy to one of
the richest countries in the
world.
The UAE’s open economy
paved the way for rapid
industrialization with trade
and commerce reaching epic
proportions. It ranks sixth5 in
the world’s oil reserves with
one of the highest per capita
incomes in the world and an
ample trade surplus.
The UAE expanded its
economy with diversification
into the service, hospitality,
logistics, manufacturing and
construction sectors that is
soon set to surpass incomes
brought in by petroleum and
natural gas exports.
The UAE has one of the
best and fastest growing
infrastructures in the world,
having invested billions
of dollars in transport,
water, power, waste, and
reclamation projects. It prides
itself with one of the largest
fleet of aircrafts, one of the
most significant and busiest
airports and one of the
biggest airline industries in
the world.
The rising Far East
Singapore’s legacy grew from being a colonial outpost to one of
the most developed nations in Asia and the world, the evolution
of which is attributed to the introduction of many landmark
reforms that spelt its success. A sovereign democracy founded on
principles of liberty and justice, Singapore keeps the welfare of its
people and the building of an equal society paramount.
Its highly developed market based economy is the world’s fourth
largest financial center6, the world’s fourth most active foreign
exchange trading center7 and one of the busiest ports in the world.
Singapore is rated by the World Bank as the world’s top logistics
hub and stands amongst the top ten most open, competitive and
innovative economies in the world. Singapore is recorded to be
one of the fastest growing economies in the world with a GDP
of 14.5%3 for the year 2010. The formation of its super-efficient
Corrupt Practices Investigation Bureau (CPIB) routed out corruption
at every level, making Singapore one of the least corrupt countries
in the world.
Prudence, profitability and growth
- the trophy trinity
Intently aware of the still `looming at large’ reality
of the continued challenges in the bearish economy,
dunia braced itself to counter these pressures head
on by unlearning the conventional and renewing its
strategies to apply and reapply viable measures to
ensure best outcomes at every level of its functioning.
Transparency and responsibility
- Two Peas in a Pod
dunia’s growth is mainly attributed to its ‘lending with
character’ and a firm belief in structuring itself as a
responsible financial organization. Mitigating popular
yet unfeasible market standards means that it focuses
on providing support and instilling confidence in its
clients rather than bowing down to business pressures
for the sake of high returns at high risk.
Transformation: an Idea becomes an
Ideology
We grow when our customers grow. We help our
customers grow by empowering them to pursue all
their ambitions and aspirations, enabling them with
all the essential sustenance and support system to
continue on their chosen path and eventually enrich
their lives with the successful completion of all that
they set out to do. This is what we achieve every day
at dunia.
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The dunia ascent towards excellence
Amalgamation to forge new beginnings
dunia was launched as a strategic alliance of two most successful and fast growing investment arms of the UAE and Singapore, Mubadala and
Fullerton Financial Holdings, with Waha Capital and A.A. Al Moosa Enterprises as partners.
Fullerton Financial Holdings (FFH)
invests in financial institutions
in emerging markets, bringing
an operational perspective to
all investment decisions. Where
appropriate, FFH supervises and
influences its institutions to
achieve the right risk reward
balance. FFH seeks to create
shareholder value by
differentiating through great
people and disciplined
development and execution of
unique business models. Its prime
areas of focus are in both Business
banking and Consumer banking.
Within Business banking, FFH
focuses on the Commercial, SME
and Self Employed Mass Market
segments. Within Consumer
banking, FFH focuses on the
Mass Affluent and Mass Salaried
segments. FFH is a wholly owned
subsidiary of Temasek Holdings,
an Asia investment house
headquartered in Singapore. As
at 31 December 2010, FFH’s total
assets stood at S$48.3 billion, and
its portfolio includes investments
in 15 financial institutions.
Mubadala Development Company
(Mubadala) is a catalyst for the
economic diversification of Abu
Dhabi. Established and owned by
the Government of Abu Dhabi, the
company’s strategy is built on
the creation of partnerships and
on long-term, capital-intensive
investments that deliver strong
financial returns and tangible
social benefits for the Emirate of
Abu Dhabi, and that contribute to
the growth and diversification of
its economy. Mubadala brings
together and manages a multibillion dollar portfolio of local,
regional and international
investments and partners with
leading global organizations
to operate businesses across a
wide range of industry sectors.
These include aerospace,
energy, healthcare, information
communications and technology,
infrastructure, real estate and
hospitality, and services ventures.
Waha Capital is an Abu Dhabi
Securities Exchange listed and
Abu Dhabi-based diversified
investment holding company.
Waha Capital has adopted a
clear vision and strategy to drive
multi-sector business growth
and diversification through
acquisitions, joint ventures and
creation of new business. Its
business today is spread across
sectors as diverse as leasing,
financial services, maritime, oil
and gas, and real estate
development. Waha Capital’s main
institutional shareholders are
Mubadala Development Company
and AD Invest.
The Al Moosa Group, also more
familiarly known as the Arenco
Group, is one of the leading and
prominent local business groups
in the UAE, with business
interests spanning real estate,
hotels, architectural design,
manufacturing, services and
trading. Set up in 1971, the group
has its corporate headquarters
in Dubai, with business interests
in all emirates and beyond. The
group continues to rapidly grow in
its various businesses as a service
oriented group and looks forward
to its diversification into financial
services through its interest in
Dunia Finance LLC.
www.fullertonfinancial.com
www.mubadala.ae
www.wahacapital.ae
www.aaagroup.com
19
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Board of Directors
21
22
Directors
Salem Rashid Al Noaimi
Chairman
Rajeev Kakar
Executive Director and Chief Executive Officer
Salem Rashid Al Noaimi is the CEO of Waha
Capital PJSC. Previously, he was the Deputy
CEO of the company and CEO of Waha Leasing,
a wholly-owned subsidiary of Waha Capital.
Prior to that, he worked in the Investments
department of Dubai Islamic Bank. Earlier in his
career, he held a wide variety of roles in the
banking and financial industry. Organizations
he has worked for include Dubai Islamic Bank,
UAE Central Bank and the Abu Dhabi Fund.
Currently, Salem holds board directorships of
several leading local and regional companies
such as Abu Dhabi Ship Building, Siraj Finance,
Mena Infrastructure Fund and Bahrain’s Addax
Bank. He holds a Bachelor’s Degree in Finance
and International Business from Northeastern
University in Boston, USA.
Rajeev is the Executive Director and Founder
CEO of dunia. He is also concurrently the
EVP and Regional CEO for CEEMEA region for
Fullerton Financial Holdings (FFH), a 100%
owned subsidiary of Temasek Holdings, in
Singapore. In his additional role as the EVP
and Senior Management Committee Member
at FFH, Rajeev also heads the Consumer
Banking businesses globally for all its Bank and
Financial Services Investments and Holdings.
Rajeev joined FFH in 2006, and prior to that
worked with Citibank N.A. for two decades,
based in various geographies, between 1987
and 2006 - and in his last role was the Regional
Head and CEO for Citibank's Global Consumer
Bank, managing the Turkey, Middle East and
Africa region.
In September of 2009, Rajeev received the
"CEO of the Year" Award for Financial Services
in the Middle East. In November 2010, Rajeev
was also recognized as one of Arabian
Business' "GCC Power List India Top 100"
which recognized top Indians in the region for
their achievements.
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Rajeev has completed his Bachelor of
Technology in Mechanical Engineering from
the Indian Institute of Technology (IIT) in Delhi
and his MBA in Marketing and Finance from
the Indian Institute of Management (IIM) in
Ahmedabad.
Rajeev is currently a member of the Global
Management Board of FFH in Singapore. He is
also a member of the Global Advisory Board for
the University of Chicago Booth School of
Business. Additionally, Rajeev is a Director on
the Board of Fullerton Securities & Wealth
Advisors Ltd (FSWA) and Fullerton India Credit
Company Ltd (FICC), headquartered in India,
and a Commissioner on the Board of
Commissioners for Adira Dinamika Multi
Finance Tbk, in Indonesia. He is also a member
of the Board Risk Committee for FICC in India;
the Board Risk Committee, HR Committee and
Audit Committee for FSWA in India; and the
Risk Committee and Audit Committee of Adira
Dinamika Multi Finance Tbk. Between July 2004
and February 2006, Rajeev was a member on
the CEMEA Board of Visa International.
Khaled Abdulla Juma Al Qubaisi
Director
Francis Rozario
Director
Dr. Ahmed Khalil Al-Mutawa
Director
Khaled Abdulla Al Qubaisi is Executive
Director, Human Resources & Administration at
Mubadala. He also currently sits as Chairman
of the National Health Insurance Company,
Daman. Khaled is also currently Managing
Director of Tabreed and sits on the Tabreed
Board of Directors. Khaled joined Mubadala
from International Capital where he was the
Chief Investment Officer. Prior to International
Capital he was Head Corporate Finance &
Business Development at National Bank of
Abu Dhabi. Khaled is a board member of
International Fish Farming Company, Asmak,
Manazel Real Estate Company as well as the
National District Cooling Company ‘Tabreed’,
and has been a member of the Chartered
Financial Analyst Institute since 2003. He holds
a BA in Finance and Operation Management
from Boston University and an MSc from
George Washington University in
Washington, DC.
Francis Rozario is the Director of dunia, and
CEO of Fullerton Financial Holdings Pte Ltd.
Prior to his current appointment, he was the
President Director of Bank Danamon in
Indonesia where he spearheaded the successful
transformation of the Bank into a major allpurpose financial services provider in the local
market. Rozario is presently the Chairman of
NIB Bank Ltd (Pakistan), Fullerton India Credit
Company (India) and Fullerton Enterprises Pvt
Ltd (India). A veteran banker, Rozario spent
close to 30 years of his career with Citigroup
International. In his last appointment at
Citibank, Rozario was based in London as the
Global Head for Commercial and SME Banking.
Dr. Ahmed Khalil Al-Mutawa is a respectable
academic professional, as he progressed in
his academic career since he held his B.A. in
Economics from Cairo University in 1978, M.A.
in Economics from University of North Carolina
in 1981, and Ph.D. in Economics, Georgetown
University, Washington, D.C. in 1991. As a
professor, he held the position of the Chairman
of the Economics Department, and in 1997
became Deputy Vice Chancellor for Planning
(DVCP), UAE University. Dr. Al-Mutawa had
occupied many important positions, among
them: Head of Teaching Assistants; Executive
Director, Al-Mustaqbal Economic & Strategic
Consultations; Strategic Development Director
at MMI and the Secretary- General of Gulf
Organization for Industrial Consulting. His
latest position is the CEO of Khalifa Fund for
Enterprise Development. Dr. Al-Mutawa has
been a member of many Associations,
Organizations and Boards of Directors on both
local and international levels. He won the
award for "Industry CEO of the Year 2005".
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Management Board
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26
Management
“Since inception, we did not just
‘operate to survive’. We took the
tougher route to ‘innovate and
strategize’ to succeed...”
Rajeev Kakar
Executive Director and Chief Executive Officer
Rajeev is the Executive Director & Founder CEO of dunia. He is also
concurrently the Executive Vice President & Regional CEO for CEEMEA
region for Fullerton Financial Holdings (FFH), a 100% owned subsidiary
of Temasek Holdings, in Singapore. In his additional role as the Executive
Vice President & Senior Management Committee Member at FFH, Rajeev
also heads the Consumer Banking businesses globally for all its Bank &
Financial Services Investments and Holdings.
Rajeev has over two and a half decades in the banking industry. Until
January 2006, he was formerly the Regional Head & CEO for Citibank’s
Global Consumer Bank, managing the Turkey, Middle East & Africa
region, based out of Dubai. In 1998, Rajeev started a new greenfield
joint venture finance company in India, between Citigroup and Suzuki
(Maruti). He ran this highly successful enterprise as its Founder CEO &
Managing Director, on its board, for over two & a half years.
In 2000, he was designated as the Country Head for Citibank in Egypt,
where he launched the Consumer Bank in the high potential Egyptian
market. In July 2002, Rajeev transferred to Turkey as Citibank’s Cluster
Country Head & CEO, for Turkey and Egypt. His role was expanded
further and in September 2003, took on the role as Regional Head &
CEO for Citibank, managing the rapidly growing region comprising of the
markets of Turkey, Middle East, Pakistan & Africa.
27
In September 2009, Rajeev received the “CEO of the Year” Award for
Financial Services in the Middle East. In November 2010, Rajeev was also
recognized as one of Arabian Business’ “GCC Power List India Top 100”
which recognized top Indians in the region. Rajeev joined Citibank in 1987 in India, after completing a Bachelor
of Technology in Mechanical Engineering from the Indian Institute of
Technology (IIT) Delhi and his Masters of Business Administration in
Marketing & Finance from the Indian Institute of Management (IIM),
Ahmedabad.
Board Memberships, Board Committees & Affiliations
Rajeev is currently a member of the Global Management Board of FFH
in Singapore. He is also a member of the Global Advisory Board for the
University of Chicago Booth School of Business. Additionally, Rajeev is
a Director on the Board of Fullerton Securities & Wealth Advisors Ltd
(FSWA) and Fullerton India Credit Company Ltd (FICC), headquartered
in India, and a Commissioner on the Board of Commissioners for Adira
Dinamika Multi Finance Tbk, in Indonesia. He is also a member of the
Board Risk Committee for FICC in India; and the Board Risk Committee,
HR Committee and Audit Committee for FSWA in India; and the Risk
Committee and Audit Committee of Adira Dinamika Multi Finance Tbk.
Between July 2004 and February 2006, Rajeev was a board member on
the CEMEA Board of Visa International.
Venu Parameshwar
Chief Financial Officer
Hend Al-Ali
Human Resources Manager
Venu has about 20 years of experience in the banking
industry in a wide range of functions and countries
including India, Australia, Korea, UAE and the UK. His
previous roles include Portfolio Risk Manager – Citibank
Australia, Treasurer – Citibank Korea, CFO and Treasurer
– Citibank India, Regional Consumer Treasurer – Citibank
CEEMEA and CFO – Citibank Turkey, Middle East and Africa.
He was most recently the Consumer CFO for the EMEA
region for Citigroup where he was responsible for the
finance function across Citigroup’s consumer business in
Western and Central Europe and the Middle East. Venu is
an Economics Graduate from the University of Bombay and
has completed his Masters in Business Administration from
the Indian Institute of Management, Ahmedabad. He is also
a Fellow member of the Institute of Chartered Accountants
of India.
Hend has over 9 years of experience in the HR field. Prior
to joining dunia, Hend was the HR Recruitment Manager
at Citibank, UAE for several years where she successfully
carried out the Emiratization program, which was highly
appreciated by the government authorities. Before joining
Citibank, Hend also worked in Mashreq Bank - Human
Resources. She ran the Bank’s recruitment programs:
Al Tumooh, Graduate Trainee program, Summer Learning
program, Core Time and Al Mashreq Al Mutamyez, as well
as other work based learning schemes.
Hend started her career with GASCO in Abu Dhabi in 1999,
after completing a Bachelor in Information Technology
from Higher Colleges of Technology from Dubai Women’s
College. Hend was awarded the Dubai Human Development
Award, by the Dubai Economic Department, and is also a
part of the Women Committee in the Banking Sector –
which is run by the Emirates Institute for Banking and
Financial Studies.
28
Mariam Elsamny
Marketing, Product and Corporate Affairs Head
Monindra Grover
Human Capital Head
Barlas Balabaner
Operations Head
Raman Krishnan
Chief Risk Officer
Mariam has over 15 years of experience in Retail Banking
and Marketing. Her latest role prior to joining dunia was
with Citibank, UAE as Marketing and Product Head handling
the bank’s retail products (for both Mass Market and
Affluent segments), and Marketing Communication and
Internet Channel for the bank. Mariam has handled several
key startup businesses during her 9 year stint with Citibank
– Citibank Egypt, UAE and Russia. Mariam began her career
with Procter & Gamble in Marketing where she gained a
solid marketing foundation. She is a double MBA holder
from University of Chicago (2008) and from the American
University in Cairo (1997).
Monindra has over 19 years of broad based experience in
HR generalist and leadership positions with leading fortune
100 companies like MasterCard, Citibank, Johnson &
Johnson, Glaxo Smithkline and British Petroleum in diverse
regional roles covering the Middle East, Africa, South Asia
and Central Asia. His previous position was as Vice
President / Senior HR Business Partner – Human Resources
for the Middle East and Africa region at MasterCard
International. Monindra is an Economics graduate from
Delhi University and holds an MBA from the Xavier Labour
Relations Institute (XLRI), India.
Barlas has worked in the banking industry for almost 22
years in various geographies including Australia and EMEA.
He has diverse experience in both Consumer and Corporate
Banking Operations/Technology Management and M&A
projects in the areas of Infrastructure startups, Branch
Network expansion, Data Center Operations, Technology
Organization Management, Quality Assurance, Productivity,
Financial Control, and Customer Service Excellence. Barlas’
last assignment prior to joining dunia was the Operations
and Technology Director for Citibank’s Global Consumer
Bank in Turkey and Executive Board Member of Citibank
A.S. Barlas graduated from Bogazici University in Istanbul
with a BA in Economics.
Raman has over 20 years of rich banking experience across
India, Singapore and Indonesia. Prior to joining dunia,
Raman’s last assignment was as the Director – Risk
Management for Permata Bank, Indonesia (a joint venture
between Standard Chartered Bank and Astra International,
an Indonesian conglomerate) since November 2005, where
he was overseeing Credit, Market and Operational Risks
across the Bank. Before joining Permata Bank, Raman
headed the Business Risk Review for the Consumer Banking
Group of Standard Chartered Bank based in Singapore.
Raman completed his Post Graduate Diploma in
Management from Indian Institute of Management, Calcutta
in 1987. Raman is also an Associate Member of the Institute
of Chartered Accountants of India.
29
30
Dhruv Panchal
Chief Information Officer
Anthony D’Souza
Audit & Compliance Head
Ali Hurbas
Strategic Analytics Head
Sanjay Kao
Consumer Business Head
Dhruv has 28 years experience in the IT industry with over
19 years in the banking and finance sector. Prior to joining
dunia, Dhruv headed the Retail Banking Technology for
Citigroup’s Europe, Middle East and Africa (EMEA) consumer
division based in London. During a 15 year stint with
Citigroup, Dhruv successfully led the technology startups
for the new Citibank Franchises in Central/Eastern Europe
and Middle East (CEEMEA) – UAE, Bahrain, Egypt, Pakistan,
Turkey, Poland and Hungary, Czech and Russia. Dhruv
holds a degree in Mechanical Engineering – Bachelor of
Technology from Indian Institute of Technology (IIT), Delhi.
Anthony D’Souza comes with more than 3 decades of rich
and varied work experience in the Middle East and across
various other regions and geographies. Until 2006, Anthony
was with Trans Arabian Investment Bank (TAIB) – Bahrain
as the Senior Vice President and Head of International
Division responsible for overseeing the US, UK, India, Turkey
and Kazakhstan business development and operations.
Prior to this, Tony completed 2 stints with Investcorp Bank
EC –Bahrain - first from July 1990 to June 1995 as Head of
Audit and Head of Corporate Projects and then again as
an external consultant for corporate treasury, global asset
management and risk management projects from 1997 to
2002. His longest tenure was with Citicorp/Citibank where
he worked on multiple senior assignments across the globe,
particularly in the EMEA region and Australasia. Tony has a
Bachelors degree from Bombay University in 1969 and
completed his Professional Accountant and Internal Auditor
courses in 1978.
Ali started his career at AT&T Universal Card Services in
Florida, U.S. in 1995, where he held various roles in Finance,
Marketing and Card Analytics. In 1999, he joined First USA
Bank, now JP Morgan Chase, as the Credit Policy Head for
card acquisitions, in Delaware, U.S. In 2000, he returned to
Turkey, joining Citigroup as the Credit Policy Head. This
involved formulation of the credit policies for the business.
Subsequently, Ali moved to the Strategic Analytics Unit of
the bank. Prior to joining dunia, Ali was with Citibank N.A.
where he was Strategic Analytics Head for the Middle East
region and responsible for consumer banking analytics,
covering UAE, Bahrain, Egypt and Pakistan, while based in
Dubai. Ali has an Industrial Engineering degree from
Bogazici University in Turkey and an MBA from the
University of Virginia’s Darden School.
Sanjay brings a wealth of experience and proven results
in consumer banking across products and in multiple
markets. Most recently, he was the Head of Consumer
Finance for RBS Asia, responsible for China, Taiwan, Hong
Kong, Singapore, Indonesia, Malaysia, India and Pakistan.
In this role, he led the Asia Strategy and P&L streamlining
following the RBS acquisition of the ABN AMRO franchise.
Prior to this, Sanjay held senior leadership roles with
Citibank in Asia Pacific, based in Singapore and Indonesia
as well as positions in India. Sanjay has also worked in the
UAE from 2001 to 2003, when he held the position of Head
of Marketing with Mashreq Bank. Sanjay started his career
with Unilever India as a management trainee, and took on
sales and marketing roles during his 7 year stint with them.
He holds a Business Management Degree from the Indian
Institute of Management, Calcutta.
31
32
M I L E S T O N E S
Pearls of excellence
33
34
Execution excellence through a balanced
scorecard approach
Achieving
growth and
sustainability
through
excellence
At its core, dunia believes in a customer
friendly approach to business. Right from
crafting a unique value proposition for
its customers to designing financial
solutions, systems and processes capable of
consistently delivering on it.
To ensure that the business runs smoothly
and on target, dunia follows a balanced
scorecard approach which ensures that we
remain focused not only on the financials
but also on the driving factors of our
financial strength – the franchise, the
people and the processes.
Using this approach, goals for all the critical
aspects of the business were set right from
the start and performance tracked. Since
we track our performance against various
metrics that impact the overall business, the
organization as a whole moves towards its
financial goals with greater ease. This
approach has helped dunia create a
sustainable business and to consistently
enhance the shareholder value.
35
Our franchise
Our people
• We have completed the second full-year of successful operations
and built on the franchise. Today dunia is a well-known financial
services brand in the UAE.
• As a testament to our customer centric way of doing business,
we were ranked 10th in Gulf News’ UAE A-List of “Customer
Focused Organizations”.
• We constantly innovate and introduce financial solutions that
match the evolving needs of our customers.
• We have built a safer and more diversified mix of customer
receivables.
• We have one of the most widely distributed network of branches
and financial centers in the UAE with a total of 19 financial
centers; Abu Dhabi: 1 Branch, 6 Financial Centers;
Al Ain: 1 Branch; Dubai: 1 Branch, 7 Financial Centers;
Sharjah: 1 Branch, 2 Financial Centers.
• dunia’s state-of-the-art 24-hour contact center offers full
customer telephony integration, which is voice and IVR enabled
and provides full function capability for sales, service, and
transactions to ensure maximum customer access and convenience
from anywhere, anytime.
• dunia’s world-class internet banking platform provides 24-hour
access with full flexibility and convenience.
• We have successfully positioned ourselves as a depository
institution. We have focused on granular deposits with longer
tenure to fund our asset side of business and raised over
AED 74 million in deposits.
• We have built several strategic alliances for product innovation,
brand building and increased customer acquisition.
• dunia has a strong community focus through its “dunia Cares”
Corporate Social Responsibility program and is widely recognized
for the same.
• dunia is driven by a highly seasoned, diverse and entrepreneurial
senior management team with multi-functional experience and
expertise in multiple markets around the world.
• dunia has more than 700 employees.
• 85% are of dunia staff are in customer facing roles enabling us to
always be in sync with the evolving customer needs.
• Diversity is a management theme and not just a principle in dunia.
Our diversity is represented by a healthy mix of gender, 38 different
nationalities, diverse cultures and various backgrounds. dunia sees
the bringing together of this diverse team towards a singular
objective of serving the customer.
• We are committed to growing the national talent tool. We run
specialized programs under ‘Kawader dunia’ to develop UAE talent
– Al Tamouh for fresh graduates, Al Waaed for part-timers and
Al-Nukhba for experienced individuals.
• Training and development is a continuous activity in dunia Training
ensures that the most competent people are available to serve our
customers. Our focus on development sees the increases in the
potential of our people:
– Total 2010 training hours: 16,437
– Total 2010 training man-days: 2,055
– 2010 training days / FTE: 3.0
– 100% mandatory training coverage of code of conduct,
information security, and compliance.
• We have ensured high employee morale and successful retention.
Our processes
Our financials
• dunia has demonstrated excellence on risk managed, analytics
driven credit setup which is bolstered by our technology enabled
and process led customer centric approach.
• Remote channels at dunia allow us to provide multiple touch
points to our customers. Whether it be our 24-hour dunia contact
center, network of 19 branches and financial centers, website
which has the latest information on all our offerings or dedicated
Relationship Managers who are committed to customer service,
dunia is accessible anytime, anywhere…
• Our high level of automation capabilities reduces operational
costs, while our revenues have been on an upward trajectory.
• We exercise risk management in all elements of credit cycle
management. We focus on managing risks predictably and pricing
our risks adequately.
• Our healthy Loan Loss Reserve of 4.8% as at 31 December, 2010
creates adequate loss absorption capacity.
• We have complied with all regulatory requirements in product and
process design.
• dunia has put in place a well-defined and functioning corporate
governance framework at both the Executive Management
and the Board Levels.
• Proven strong performance in top line and bottom line figures.
• We have a healthy and strongly growing revenue line. We have
focused on building a higher, better quality and more sustainable
revenue base, with a higher percentage of it coming from
secured assets.
• Excluding one-timers, cost to income ratio has steadily fallen to
131%. Expenses show a decreasing and predictable trend and are
expected to decrease even further.
• Cost of credit has stabilized at a low and predictable level in the
financial year 2010.
• Our growth is increasingly self-funded through granular deposit
growth.
• Efficiency ratios (excluding one-timers):
– Expense/Average Net Receivables in 2010 stood at 50%
versus 138% in the financial year 2009 (64% improvement);
December 2010 annualized Expense /Average Net
Receivables is even lower at 38% showing continuous
month on month increase in expense productivity.
– Cost/Income in 2010 stood at 131% versus 299% in the
financial year 2009 (56% improvement); December 2010
Cost/Income ratio is at 98% showing continuous month
on month improvement in expense efficiency.
– Loss absorption capacity in 2010 stood at -0.9x versus
-7.9x in the financial year 2009 (89% improvement);
December 2010 annualized loss absorption capacity is
at +0.06% showing continuous month on month positive
increase in its trend.
36
Creating history...
Since inception dunia has managed
to effectively prove the efficacy of its
business model and its unique customer
centric focus. dunia constantly strives
to innovate and wow customers with a
great customer experience. There have
been many milestones which dunia has
achieved since launch.
...continuously striving to reach newer heights
'10
'09
• Jan
•
•
•
•
•
'08
•
•
•
•
•
•
Silver Credit Card range
Dec dunia launches dunia@work
'06-'07
1 employee joins dunia
• Jan
Mar
Jul
dunia is conceptualized
•
Sep
'06
Aug
'08
P
lanning & blue printing phase to deliver a •
st
37
•
• May100 employee joins dunia
• Jul dunia incorporation
• Aug Blue printing phase completed
• Sep dunia launches business
• Sep Hamdan Branch opening
• Oct dunia launches Personal Loans
• Nov dunia launches Corporate Deposits
• Nov dunia launches dunia Credit Shield
• Dec dunia launches Platinum, Gold and
th
•
•
•
•
•
dunia enters into partnership with
MasterCard Worldwide
Jan dunia launches dunia Financial Planner
Mar dunia launches Education Loans
Apr dunia launches Durable Good Loans
Apr dunia launches dunia Credit Life
May Hend Al Ali awarded the 'Emiritization
Champion' by Government of Dubai's
Economic Department
May Rajeev Kakar recognized by HH Ruler of
Sharjah for his special efforts in supporting
and developing UAE Talent
May Launch of 'Kawader dunia' Emiratization
program, in partnership with S.P.Jain Center
of Management
May dunia launches Auto Loans
May dunia launches Car Cash-in Loans
Jun dunia wins award for 'Best Use of
Technology' at Banker Middle East Industry
Awards
Jun dunia signs agreement with Ministry of
Finance to perform bank guarantee
e-registration service
Jun dunia launches dunia Wallet & Life Guard
Insurance
Jul700th employee joins dunia
Sep Rajeev Kakar awarded 'CEO of the Year Financial Services'
Sep dunia launches Diamond Credit Cards
Dec dunia wins 'Special CSR Award' at the
Arabian Business Achievement Awards
• Jan Al Wahada Branch opening
• Jan Passport Road Service Center opening
• Mar Media City Branch opening
• Apr Karama Service Center opening
• Apr Naif Service Center opening
• Apr Rolla Service Center opening
• Apr Musalla Road Service Center opening
• Apr National Paints Service Center opening
• May Knowledge and Human Development Authority (KHDA)
signs MOU with dunia
• May dunia launches Wages Protection System (WPS)
Payroll Solution
• May Defence Road Service Center opening
• May Musaffah Industrial Area Service Center
• Jun
• Jun
• Jun
• Jul
opening
Al Quoz Service Center opening
Al Qusais Service Center opening
Oud Metha Service Centre opening
dunia launches Commercial Auto Loans
• Jul Dubai Outsource Zone Service Center opening
• Aug dunia launches Flexi Loan Facilities
• Sep Al-Ain Branch opening
• Sep Khalidiya Service Center opening
• Nov Rajeev Kakar recognized in 'GCC India Power List 2010' for 'Top 100 Indians' in the region
• Dec Moroor Service Center opening
• Dec Mussaffah Commercial Area Service Center opening
• Dec dunia's 2009 annual report wins 'Honors Award' in International Mercury Awards
• Dec dunia's 2009 annual report wins 'Platinum Award' in the League of American
Communication Professionals (LACP) Award
unique customer focused business model
38
Excellence through passion
Riad Kudsi
The musical journey of a maestro who began with just one
student and went on to create an entire orchestra
Riad Kudsi is the founder and conductor of the
Emirates Youth Symphony Orchestra (EYSO).
Having founded the orchestra in 1993, he
organized and conducted the first Emirates
International Peace Music Festival in 2004 and
has since then relentlessly strived to continue the
annual event. In 2009 he established the first ever
National Conservatory in the UAE and the region
at large with accreditation from the Premiere
Music College of Prague. He instituted music
scholarship awards to Emirati nationals and calls
for cultural, public and private establishments
to contribute to the scholarship fund in order
to pave the way for more nationals to exhibit
their talent and artistry and thereby lending true
identity and representation of Emiratis in their
National Orchestra.
Having enumerated all his achievements, if one
were to ask Riad Kudsi about which of these
makes for his proudest achievement, he is quick
to respond pointing to the love and respect that
his students have for him as his greatest.
Riad Kudsi’s professional milestones mirror
the personal ones that he had achieved from
the tender age of seven when he commenced
his fulfilling musical journey under his father’s
tutelage. He was a promising student who
exhibited great talent and dexterity from the
moment he touched his violin. A Czech national
of Syrian origin, Riad Kudsi achieved various
distinctions as a violinist throughout his
education with scholarships at the Prague
Conservatory and the Higher Academy of Music.
He gave up his graduate education in architecture
41
against the popular wishes and advice of all
his friends and family to pursue his love for
music. After 4 years of study in Prague National
Conservatory followed by 5 years in Prague
Higher Academy of Music, he graduated with
distinction in 1979, obtaining a Master’s of Art
degree in music specializing in playing violin.
The Maestro’s journey in the UAE since his
arrival in 1986 has been speckled with laurels
and achievements at every turn in line with the
dictates of the high standards that he has set for
himself as well as those associated with him. Riad
built his orchestra with 15 members in 1993, and
he grew the orchestra to about 65 highly talented
member students by 2002. Riad’s uncompromising
standards and the lengths that he would go to
achieve his dream made a reality of all that he set
out to accomplish.
More than 500 students and orchestra members
have come and gone. Nine members have chosen
classical music as their professional career and
joined well recognized music colleges and
universities. It is this migration of talent that has
led to the creation of the national conservatory
and the call for nationalization of the Orchestra
by recruiting UAE nationals in order to preserve
the efforts and talents cultivated in the UAE.
The principles that define the success of the
Emirates Youth Symphony Orchestra, the Emirates
International Peace Music Festival and the
National Conservatory are steeped in the
education, promotion, and preservation of
national talents in music and culture.
Riad Kudsi’s efforts are not just inspired by the
peaceful co-existence of the international cultures
that is the flavor of life in the UAE, but adds
considerably to its strength by binding them all
together with the loftiest yet common language to
one and all, Music!
His efforts have gone a long way in showcasing
the musical platform in not just the UAE, but
internationally with the orchestra’s participation
in concerts and performances around the world.
Several concerts and visits to the Czech Republic,
France, Kuwait and Oman have made EYSO a
recognized and respected name in the musical and
cultural circles in the Middle East and Europe.
The EYSO performances have always supported
charities in line with Riad’s beliefs and objectives
to unite people for a cause through music. Riad
and his school's philanthropy have raised funds in
aid and relief of, the UAE Red Crescent Activities,
Victims of BAM earthquake and Tsunami victims,
Palestinian Children, Pakistan Floods, Rashid
Pediatric Center and the Japanese Red Cross
Society to name a few.
The EYSO, under Riad’s able guidance, has
stretched the frontiers of music with its focused
music education, concerted efforts in talent
identification, concerts for public and charities,
conducting of festivals, competitions, workshops
and much more. Riad’s career has not always
been a bed of roses; it was the difficulties and
challenges that speckled his entire journey that
helped in creating the ‘one big family’ of his
students and their families. Dedication, hard work,
excellence, team work and discipline are a norm
with all the members of his music family who at all
times pitch in to ease the hurdles in every way that
they can.
His long standing efforts in garnering UAE talent,
his charities through music, his high teaching
standards and practices, his contributions towards
developing professional musical careers that
culminate in world arenas have all but ensured
the many accolades that have come his way.
UNICEF, Médecins Sans Frontières, Rashid Pediatric
Center, The Red Crescent and numerous other
organizations have recognized EYSO for its
contribution. For two years, his orchestra was
honored by the patronage of HRH princess Haya
Bint Al Hussein, wife of HH Sheik Mohammed
Bin Rashid Al Maktoum, Vice President and
Prime Minister of the UAE and the Ruler of
Dubai. In 2004, he was awarded the Gratias Agit
Award Laureates by the Czech government in
acknowledgement of his promotion of music
culture. Tecom Investments' Pearl Award was
given to Riad Kudsi in 2009 for his efforts in Dubai
Media City and the community.
Riad has always dreamt of creating and conducting
a symphony orchestra, and now with the EYSO and
a conservatory that is on par with only the best in
the world, he hopes to be remembered as the first
man to have single handedly initiated and set the
mood for the creation of the national orchestra
for the UAE. He strives at all times to garner local
talent and hopes to one day create The Emirates
National Symphony Orchestra with a majority of
its players from the UAE.
Riad Kudsi’s
achievements
are not fuelled
by anything or
anyone but his
own individual
efforts and a
vision to rise to
the need of the
times.
Our franchise
dunia’s unique segment based approach
ensured that the customer experience at every
stage is nothing short of being exceptional.
The segment based approach also gives
dunia the ability to identify varying financial
needs of each customer and design solutions
that would match those needs. It helped us
steer clear of the product based approach
and enabled us to stay true to our customer
centric approach to business.
Since launch, we have held firm to our
customer centric approach in all that we do.
An in-depth study of the customer’s world
and his or her possible requirements at
every stage of life, fuels dunia’s roll out of
the best of products to suit each segment.
This understanding of the customer’s niche
requirements accounts for the individual’s
wholesome experience at dunia.
The Unique Value Proposition (UVP) designed
for each segment lays the foundations of a
reliable and consistent customer experience
and continues to serve as a constant reminder
of the world class service we promise to give
our customers.
dunia’s unique value proposition
Understanding the market
Corporate
The compelling need to serve the
consumer at the optimum, best steered
dunia’s ideology of consumer
segmentation.
Commercial
At the start we went out and researched
the market over several months. We spoke
to the ‘man on street’ to understand his
financial needs and where he felt the
existing banks and financial institutions
were failing to serve him.
The UVP for our customer segments was
designed to create an offering by building
differentiation and relevance. Founded on the
premise that needs are customer based as
opposed to product based, it provided
unparalleled business solutions that fulfill the
individual requirements of different segments
and individuals. The value proposition for each
segment was tailored to suit and cater to the
customer after extensive market understanding
and research.
Mass Affluent
SME
Self-Employed Mass Market
dunia offers to its ‘Mass Affluent’, an array of financial
solutions at their very doorstep. Professional expertise on
every financial solution offered is ensured as a one-stopshop option to optimize valuable time and energy.
dunia is designed to be a provider of a wide range of
customized financial solutions through superior products,
service and relationship experience based on respect, with
easy access through an empowered Relationship Manager,
alternative access channels for convenience and speed, to
provide for better lifestyle and future for self and family
back home or internationally.
duniagold customizes elite solutions for the exclusive
needs of its most ‘Affluent’ members of the community.
While providing financial solutions that enhance their
lifestyle, the state-of-the-art service ensures the speed
and efficiency that is demanded by their evolving life
and business interests.
duniagold was built to be a provider of customized and
tailor-made solutions that cater to the unique financial
and lifestyle needs of affluent customers and meet their
aspirational goals by providing a wide range of financial
products and services, while delivering these with
exceptional service and convenience through a single
point of contact.
43
Affluent
Salaried Mass Market
duniamoney was tailor-made to provide financial solutions
to the ‘Salaried consumers’. Simplification of processes
ensured that even the most unique of financial needs are
implemented rapidly, while specialized product solutions
catered to the specific needs that is exclusive to this
particular customer segment.
duniamoney strives to offer a community-based, superior
service and relationship experience based on empathy
and respect, while delivering customers with easy credit
and simple savings products to meet their simple financial
needs, in order to help them provide for a better future for
self and family back home.
duniatrade was the answer to the most pressing financial
need of the ‘Self-employed consumers’. An often neglected
and under-served section of society, this segment needed
financial services that were legitimate, thereby steering
them away from parallel, unreliable banking channels.
duniatrade vows to be a caring community-based financial
services provider designed specifically to serve the
unbanked or under-served self-employed, through a
superior relationship experience, empathy and respect, with
convenient, fast and easy access to credit for their business
and personal needs, to help them grow their businesses and
provide for a better future for self and family
.
44
Offering financial solutions to match
customer needs
dunia offers one of the most comprehensive, innovative and expanding suite of
financial solutions in the UAE market.
'dunia One'
The ‘dunia One’ account is a complete one-stop financial solution to all the
diversified customer needs, making it the best place to be at for tailor-made services
and products.
The wide distribution network of branches and service centers offers a selection of
the best of products accompanied by never-before-experienced service quality in
the Middle East. Individuals can address their transaction, savings, borrowing and
protection needs through the offered range of financial solutions.
Meeting every financial need of the customer
Transacting using the Diamond,
Platinum, Gold and Silver cards
entitles the customer to a key range
of features and benefits, making
every transaction a very rewarding
experience. dunia’s WPS Payroll
Card solution enables employers to
smoothen out their salary payment
hassles while giving the employees
the convenience of accessing their
salary through multiple locations.
Borrowing at dunia is paved with
ease and flexibility for the customer,
keeping in line with dunia’s ideology
of addressing the financial needs of
customers. Clarity in conveying the
requirements in terms of eligibility
and minimum documentation
ensures that borrowing is a quick
and easy process. Individuals can
benefit from a range of personal,
educational, durable and automobile
loans depending on their unique
needs and requirements. Individuals
can also have instant access to funds
through dunia’s Flexi Loan facilities
at low or preferential interest rates
with flexible repayment options.
45
Protection against loss and theft
as well as simple insurance policies
and plans are offered to individuals
as safeguards in the event of
unforeseen calamities. These
insurance products are offered in
conjunction with dunia’s financial
solutions that cater to customers’
transacting and borrowing needs.
Saving through dunia’s corporate
deposit with attractive deposit rates
makes it easy to earn on surplus
funds.
'dunia One' for corporates brings
together corporate deposits, labour
guarantees and Wages Protection
System solution, servicing it all
under one account. 'dunia One'
ensures immediate access to a slew
of corporate solutions. Preferential
pricing of products and dedicated
corporate relationship managers are
just a few of the various amenities
that make banking with dunia
an advantage. dunia’s products
extend to benefit and cover all the
employees of the corporation with
its integrated and comprehensive
offerings. The dunia advantage
spells ease in partnering for multiple
solutions with one provider.
Delivering excellence
with a smile
46
Delivering service excellence
nce
Experience
Associate
partners
&
Loyalty
Convenience
Automated Rule Engine
When a customer applies for a financial solution
from dunia, our Automated Rule Engine enables
quick decisioning and consistency in underwriting.
Best-in-class CRM
We have designed a technology platform that
enables a 360° view of our customers. At every
customer interaction point, a dunia representative
is able to understand the full relationship details of
the customer and offer him solutions that match his
unique needs.
47
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Enabling superior service
Customer focused approach
Our financial solutions are designed based on our
clear understanding of customers' needs through
extensive and periodic research.
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Our focus has been on building a relationship
with the customer in a way that all his financial
needs can be taken care of by a single entity. It is
our holistic use of technology that empowers both the
enterprise as well as our relationship with the customers.
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dunia’s award winning proprietary
technology platform was custom built
using service oriented architecture
to support a customer centric
organization. The systems are designed
to achieve efficiency for the organization
and provide greater ease and convenience
for the customers.
Relationship
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Each element of the customer journey
is reviewed extensively to find ways in
which it could be enhanced to create a
seamless, consistent and exceptional
customer experience.
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Our customer centric approach entails maintaining service
levels that are at par with the best businesses in the world.
The focus is not only on offering a bouquet of financial
solutions but also on delivering them in a way
that would bring about a paradigm shift in how
customers could be served.
Consolidated single statement
We offer holistic financial solutions, not isolated
products. This is also reflected in the full statement
of accounts which the customer receives from us
through physical statements, e-statements, on-line
and phone.
Tiered & value-based
Each of our customers receives the full benefits of
dunia’s value based pricing and credit facility limits.
As customers grow with us, they become eligible
for enhanced credit facilities based on their
performance.
We partnered with the best-in-class to develop a service
oriented, and plug and play technology platform that
supports our way of doing business by keeping the
customer at the center of whatever we do. Use of the latest
and most innovative technologies, custom-built to suit
requirements, set limitless possibilities for upgradation of
systems.
The technology used transformed the way customers are
served in this market and helped us readapt ourselves
quicker to the changing economic conditions.
Technology at dunia strives to serve the interests of not
just the different aspects of the business but ultimately the
interests of all stakeholders. dunia’s proprietary systems
and capabilities not only help in delivering exceptional
customer experience but also power dunia’s Strategic
Analytics capabilities. Our analytics capabilities enable
quick decision making based on efficient risk management
and rewarding of customer relationships. Since customer
profiling is centralized, this enables consistent and quick
decision making across all channels.
Analytics based decision making at dunia provides
opportunities that maximize revenue while minimizing
risks. Enabling faster response times and instant customer
rewarding mechanisms translates into a faster turnaround
time for the business thus spurring efficiency and success
rates in all endeavors.
Disciplined and focused data extraction and the
transformation loaded into the data warehouse allows
for the granular management of the portfolio above and
beyond conventional data mining.
Execution focus and multi-dimensionality of the Analytics
unit make way for customer progression management with
instant customer rewarding and faster response time from
the point of initial customer contact.
The close working relationship and synchronization
between business decision makers and the strategists of the
Analytics team, bring to dunia a never before experienced
synergy where informed decision making is based on the
availability and genuine use of data.
dunia’s Strategic Analytics unit boasts a top-of-the-line
analytics infrastructure with a state-of-the-art data
warehouse and sophisticated end-use analytics tools that
help ensure preparation of analysis for effective decision
making, to help build greater predictability in results
spanning risk, revenue and response.
48
Service excellence is the key…
dunia has created its business by forming firm and long
lasting relationships with its customers. We build on this
relationship by having the right financial solutions for the
customer, providing him with multiple points of access,
responding promptly to his requests and having his
concerns addressed to by competent people. Our processes
have been fine-tuned to deliver in a timely manner and
we closely track and improve the response time that
it takes to respond to a customer query. Our processes
have also been reengineered to be relatively error free.
In rare circumstances where an error does occur, we
pride ourselves in fixing this error and responding to the
customer with courtesy in every step of the way to ensure
satisfaction with the problem resolution. Being customer
orientated means taking feedback from the customer
regularly and raising our standards every time. In short,
customer service is a management theme in dunia and we
go the extra mile for our customers.
It is everyone’s responsibility in dunia to be truly our
customers' “world of financial choices” and “best place
to bank”.
To facilitate this experience, dunia has set up a 24-hour,
7 days a week state-of-the-art multi-lingual contact center
which is supported by the best technology at the back-end,
enabling it not only to service customers, but also be a key
acquisition and customer deepening channel. Customers
not only seek superior servicing, but also a means of
getting requests fulfilled in a timely and efficient manner.
Through our infrastructure, people, technology and
partners, we ensure that we can reliably and consistently
deliver on our customer promise.
Convenience through multiple channels
Our customers can talk to us at any time through
any of dunia’s multiple channels. Our technology and
processes ensure that the customer would receive the
same world class service irrespective of the channel
he chooses.
Holistic relationship management to help keep our customers
always ahead
Customer acquisition
Prospective customers are profiled over the phone, leads
created on the system and automatically passed to the
contact center’s own acquisition team who meet customers
and handle the fulfillment process thereby enabling a much
shorter turnaround time.
19 financial centers spread across the UAE
Our customer has access to one of the widest
distribution networks in the UAE.
Overall, dunia has managed to create a unique platform
whereby phone center officers are enabled and empowered
to fulfill customer requests in the most efficient and timely
manner. Our contact center is effectively another dunia
branch with full capability.
24-hour contact center
Anytime of the day, any day of the week, our
customer can talk to dunia customer service
representative and have their queries resolved.
dunia also has a Central Customer Service (CCS) unit which
is committed to serving the customer. Through a team of
people, each customer query is addressed to and resolved in
a timely manner.
Dedicated personal Relationship Manager
Every dunia customer has a dedicated Relationship
Manager who forms the first point of contact with the
customer and is always available to help.
dunia online
Through the dunia online service, customers can
transact and view their account details online. The
service also allows the customer to make utility bill
payments, raise service related issues and view their
previous transactions.
Relationship deepening
dunia’s automated rule engine and on-line decisioning
enables phone officers to identify key product offerings that
meet the customers' profiles and needs and instantly offer
them and fulfill over the phone. Our phone officers are also
able to instantly fulfill customer needs over the phone with
no extra documents since they can view all of customer’s
documents that are scanned and available on dunia’s
imaging system.
In order to be as close to the customer as possible, we have
set up a dunia financial center in every nook and corner of
the country. Working in close proximity with the customers
means an in-depth understanding of their specific needs in
life and vocation. dunia translates this knowledge for the
advantage of its customer in terms of delivering a value
proposition that is both relevant and personalized.
The unique dunia experience is apparent to the customer
from the moment he/she steps into the financial centers.
The well trained and friendly staff deliver world class
service to all the customers keeping in line with the
commitment to quality that spells the dunia difference. This
dedication and integrity permeates across all levels of the
organization making for the dunia tradition.
The multiple touch points truly make connecting with
dunia easy and elementary for all its customers. Electronic
connectivity is established via the website and e-business
while phone contact is maintained through the 24-hour
dunia contact center and SMSes. Personal contacts
are ensured through Relationship Managers, referrals,
merchandisers and dealers. Direct contacts are also
established via dunia’s presence at work, school, and malls;
where much needed and appropriate financial products are
provided to enable on-the-spot solutions to the customers.
Operating a network of 19 financial centers across the UAE,
a 24-hour dunia contact center, internet platform and a
proactive sales force made being anywhere and everywhere
that the customers were, a possibility. Each aspect of the
49
service delivery through these channels is tracked by Key
Performance Indices, various metrics and ‘Vital Fews’ so
that we always ensure world class service is being offered
to our customers. Backed by a team who are customer
oriented to the core and available for the customer at every
stage enables the theme of being the “world of financial
choices” for our customers a reality.
Relationship management
Our world class Customer Relationship Management system
developed on proprietary technology provides a holistic
customer experience which is consistent irrespective of the
channel our customer comes through. dunia phone officers
have a 360 degree single view of customer accounts. When
a customer calls us, our phone officers can view the entire
range of financial solution the customer holds from us and
is able to guide him through the entire array of financial
solutions from dunia.
Our automated inquiry management system enables phone
officers to instantly log queries addressed to other units
for fulfillment of customer requests. This ensures tracking
of requests to ensure timely resolution and closure. Our
‘System of Knowledge’ platform is an all encompassing
directory of all products and services which provides quick
access to phone officers to respond to customer queries.
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Going the extra mile…
Our customer centric focus entails that we
understand the customers’ needs end-toend and deliver financial solutions with a
service level that is nothing short of being
benchmarked with the best.
queries is measured every single day and the
performance is tracked month on month.
The whole service aspect of dunia is carefully
tracked against pre-set performance goals,
so that the customer is ‘wow’ed in every
interaction.
The focus on proactively identifying and
resolving customer queries helps us in our
efforts to build customer loyalty. It is because
of this customer loyalty that over the years
we have seen a steady stream of customer
referrals and this will only compound as we
grow.
Process related errors are actively tracked,
identified and immediately remedied. Every
query raised is acted upon in a timely manner
and resolved to the customer’s satisfaction.
The response time in resolving customer
In fact, Gulf News, the most widely distributed
national-level English daily in the UAE, recently
ranked dunia 10th in the A-list of companies
across industries in the UAE for providing
quality customer service and experience.
"It is my firm belief that I have a link with the past
and a responsibility to the future."
King Hussein
Creating capability for the future…
We at dunia have constantly recreated
ourselves to match the evolving needs of our
customers. We have worked hard to setup
the framework which is capable of sustaining
an exponential growth. By partnering with
the best in class and investing in the latest
technology, we have ensured that our systems
stay up to date and have proven capability
of delivering flawlessly. Our proprietary
technology platform is scalable and would
allow us to serve the ever increasing base of
customers with ease.
The processes are also designed to factor in
our fast increasing customer base. Since each
process was designed to perform at the highest
level of efficiency possible and moderated by
adequate controls, they have been tested and
proven effective in dealing with larger numbers
and our widening portfolio of financial
solutions.
As each channel in dunia is connected to our
technology network and we also have
processes designed to serve our customer
base, this allows us to cater to the expanding
complexities of the business. As the scale and
51
size of the operations increase, these systems
will be able to match up to the needs of the
business in a heartbeat.
By building a strong framework which is
both scalable and flexible, we have created
capabilities that will enable us well into the
future, to be able to consistently deliver
against the evolving needs of our customers.
Daily vital fews…
We have established a robust set of metrics
to help us track performance on a daily
basis…
• Open customer complaints
• Open legal, regulatory or Central Bank
complaints
• Average turnaround time to resolve
customer complaint
• Month on month improvement in
turnaround time to resolve customer
complaints
– Total service requests escalated
– Problem incidence
– Problem resolution satisfaction
– Timeliness of resolution
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Creating strong alliances….
We believe that the world is flat. People
everywhere are connected to each other
through telephony and internet. In this new
reality, we recognize that in order to stay true
to our customer centric philosophy we also
need to rely on not just our conversation with
the customer but also the conversations that
customers have between themselves.
In order to enhance our capabilities, we
have built strategic alliances across sectors
and have brought in several innovations in
the way financial services are offered and
delivered in this market. By partnering with
institutions that complement the dunia brand,
we have effectively created an eco-system of
excellence.
Universities
We believe that the leading companies of the
future will be the ones that control knowledge.
Interacting with teachers and students allows
us to know the latest on what is evolving in
different parts of the world.
S.P. Jain Center of Management
The institute’s Global MBA program was
recently ranked as 9th Best in Asia in 2011.
Through our Management Associate programs,
dunia offers students who successfully
complete S. P. Jain Center of Management’s
Global MBA Program a chance to kick start
their career on the fast track. The students
in these programs are groomed and trained
to take on leadership positions and run
businesses.
Functional experts from dunia also visit the
campus regularly to provide real life insights
into running of a business. This greatly aids
in the learning process and helps cement the
learning the student gains from the classroom
sessions.
Zayed University
Named after the founder of the UAE, the late
Sheikh Zayed bin Sultan Al Nahyan, the Zayed
University has become a center of excellence
through innovation, inspiration and education.
53
dunia has had a long and fruitful association
with the institute. dunia’s Kawader Program
is popular in the university and has generated
a lot of interest and enrolments into the
program.
Developing national talent pool
The National Human Resource
Development and Employment
Authority (TANMIA)
TANMIA was established to increase the
participation of qualified and skilled National
talent in the economy. It also aims to develop
and enhance the work skills and potential of
the National talent. For dunia, TANMIA was
a natural partner, as we are committed to
achieving the same objectives as TANMIA. Over
the years this partnership has flourished and
TANMIA has become part of dunia’s eco-system
itself.
Giving back to the community
dunia has always been in the forefront
of addressing the most pressing needs of
the society. ‘dunia Cares’, our Corporate
Social Responsibility (CSR) initiative, aims
to alleviate and improve the conditions of
the larger community where we live. Our
'Save the Future' campaign ties together
our various initiatives relating to the key
pillars of Education, Health, Environment and
Social improvement. At dunia, it’s not just
about offering financial solutions, but also
contributing to the greater community.
dunia built its Corporate Social Responsibility
focus alongside its business since inception.
Every member of the dunia family works jointly
with others to bring about a change for the
community and people, however small or big.
A few key examples of dunia's successful CSR
campaigns include dunia's Message in a Bottle
Campaign, dunia's National Blood Donation
Drive, dunia's Art Gallery and the
dunia Family Fun Day...
Human Resource development is just one
aspect of dunia’s eco-system. It also has
established strong tie-ups with several
institutions that help us enhance the customer
proposition.
Business partners
dunia has one of the largest networks of auto
dealerships that is spread across Abu Dhabi,
Al Ain, Dubai and Sharjah. The wide dealership
helps our customers to choose the vehicle that
is just right for them.
dunia has always believed in forging
partnerships with the best-in-class. The
technology in dunia is powered by the biggest
and the best names in their respective fields.
dunia’s proprietary technology platforms
uniquely integrates these systems to bring
together these divergent systems and enables
us to provide our customers with a seamless
experience, every time.
dunia’s Message in a Bottle
Help Save the Environment… “Reuse, Reduce, Recycle”…
over 2.6 TONS of unwanted paper collected!!
This campaign was launched to convert
existing environmental awareness into
a tangible reality by bringing together
the various departments in the company
to actively contribute to the cause. The
various departments were grouped into
teams and made to collect as much
paper and plastics as possible towards
recycling. The exercise rekindled the
fire within to be proactive towards the
Over
2.6 TONS
of paper
collected!
preservation of the environment and the
consciousness of the limited resources
available to mankind and its depletion at
its current rapid rate.
The team spirit exhibited by the members
turned the whole activity into an
enjoyable and constructive initiative that
would continue to have a long lasting
positive effect in the future.
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Education, health, environment
and social improvement….
...dunia plays a wholesome role in the
community
dunia’s National Blood Donation Drive… over 1,000 lives saved!!
dunia’s Family Fun Day
dunia conducted its 7 nation-wide blood
donation drive in partnership with hospitals
across the UAE. Saving human lives and
promoting health amongst the community
is a cause that needs no clamoring amongst
the members of the dunia family – staff,
customers and the wider community. They
all actively participate and wholeheartedly
support the cause.
When you bring people
together that is when magic
happens. We celebrated the
opening of our Oud Metha
Financial Service Center by
inviting the community to a
Family Fun Day. The event
included games, activities
and contests for our young
audience.
th
Artist name: Tejas S; Winner of
'Best Overall Painting' award
At dunia, we go the extra mile
to open up opportunities for
people to mingle with one
another and share thoughts,
ideas and learnings… enriching
each other.
Staff, customers and community members came to dunia branches to volunteer for blood donation
The dunia Family Fun Day
included a special activity for
children to paint a picture
relating to the UAE National
Day and express their feelings
about the day. Children got
a chance to showcase their
creativity and be a part of a
community.
dunia’s Art Gallery
At dunia, we believe that art and culture
are integral to bringing people together and
building vibrant societies. We rolled out
the dunia Art Gallery across dunia financial
centers. Mashkoor Raza, the renowned
Pakistani artist, was present at the opening
reception and did a live painting on site! The
dunia Art Gallery showcased a selection of
art from prestigious artists from around the
world including works by the renowned late
Pakistani artist Ismail Gulgee and the iconic
Spanish surrealist Salvador Dali and many
more prominent artists from around the
world….
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Children enjoying the day at the dunia
Family Fun Day in Oud Metha Branch
Artist name: Aishuraya G; Winner of
'Best Depiction of UAE Culture' painting award
Mashkoor Raza, renowned Pakistani artist,
doing a live painting at the dunia Art Gallery
Artist name: Richelle Almedia; Winner of
'Best UAE Landscape' painting award
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Excellence through service
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58
Roger and Elle
Two ordinary people who have done extraordinary things to
change the lives of people for the better
Meet Roger and Elle Trow. Two people who have
devoted their lives to serving others who are
less fortunate. Elle says, “It’s the smallest things
that make the biggest difference”. Together
they have reached out to thousands of under
privileged workers across the UAE and made a
real difference.
Roger and Elle both started out their life away
from the humanitarian pursuits that would later
define them. They grew up in the same town, in
adjacent neighborhoods in the UK. They met in
1965 and got married two years later.
After marriage, Roger’s work as a chartered land
surveyor took them to Nigeria. Their life in Africa
was far removed from the comforts that they
were used to back in their home country. Clean
drinking water, electricity, effective sewage
disposal system – the basic amenities that they
had always taken for granted were not accessible
to a large portion of the population there. They
also witnessed the lives of some of the most
poverty stricken people in the world. During the
7 years that they spent in Africa, the seeds to
devote their time and resources to improve the
lives of others were sowed.
Roger and Elle moved from Africa to the Middle
East in the ‘80s. After doing a short stint in
Saudi Arabia they settled down in Bahrain. The
infrastructure was good, friends were plenty
and they stayed in that country for the next
21 years. Bahrain presented an interesting
perspective to the couple. Areas that were
just coming out of poverty with low levels of
education and standard of living, were adjacent
to neighborhoods that bathed in luxury. They
resolved to do something to reduce the disparity
they saw around them and started assisting
people who came to them for help. These
activities were not of a scale that they would
later on achieve, but these were nonetheless
small beginnings of a great idea.
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During the 1991 Gulf War, Elle raised an appeal
and organized shipments of feminine hygiene
products for the female troops based in Eastern
Province in Saudi Arabia. She arranged the
logistics to transport and distribute thousands of
kilograms of these products through the British
Royal Engineers who frequently came to Bahrain
to source material for the war zone arena.
While in Bahrain, they visited Dubai frequently,
a city, which even back then, was spoilt for
choices. Roger found work in Dubai in 2001 and
the couple decided to take up the opportunity to
move to a new place. Life continued as before,
with them assisting people who came to them for
help.
Their lives took a dramatic leap on a cold day
in October 2006. While speaking to a contact
in a labor camp, Roger and Elle realized there is
something that they could do. The couple decided
to work with the company to provide a new
menu and warm clothing for each of the workers.
provide the men with some form of recreation
and so they installed TVs, DVD players and film
libraries in the camps. They set up exercising
equipments and sports equipment such as table
tennis, cricket, basketball, football, air hockey,
foosball tables. They also set up computers in
the camps so that the workforce could pick up
computer skills and the men could communicate
with their families back home.
In helping the workers, Roger and Elle always
take into account the cultural preferences of the
people they are helping. When donating food,
they see to it that the food is to the workers’
liking and insist on using only quality ingredients
in the food they distribute. When donating
clothes, they take the time and effort to color
coordinate the clothes and wrap them into neat
bundles before distributing in the camps. They
pay attention to the smallest of these details.
Several days later, they received a call from
another camp. Roger and Elle helped these men
out too. Slowly, the calls started pouring in from
several quarters and the couple found themselves
devoting more and more time to charitable
causes and this is how it all began...
The global financial crisis of 2008 that made
its way to Dubai’s shores brought in a greater
complexity to Roger and Elle’s work. Job-loss
related stress calls became more common and
most of the financial support streams for Roger
and Elle’s work started drying up. The couple,
more than ever before, had to spend all their
available time and resources to respond to the
increasing number of distress calls and emails.
Today, Roger and Elle’s humanitarian efforts go
beyond providing the workers with food and
clothing. Roger and Elle also focus on assisting
with medical and even psychological problems.
They have run successful preventive healthcare
programs in labor camps by inviting medical
professionals to teach the men about health,
hygiene, diet and prevention of communicable
diseases. They have also encouraged companies
to put more greenery around the camps, set up
isolation rooms to prevent the spread of
communicable diseases and in general do more
for their workforce. Roger and Elle resolved to
Roger and Elle have helped tens of thousands
of people so far. They have been well
recognized for the relentless work
that they have done. They won the
‘Excellence Awards’ in Express Award:
International Women’s Day (2008)
and the ‘Guardian of the Year’ Award
in Inspire Dubai (2008). They also
received the ‘Ahlan Hot 100 Award’ for
charity (2009). But for them, it’s not
the awards or the recognition that
matter. What counts is knowing that
they have helped improve the lives
of hundreds of under privileged people and their
families back home.
Roger and Elle currently fund all these initiatives
themselves. They aspire to one day be a
registered charitable organization in the UAE so
that they can invite more people to join and scale
up their efforts.
Dubai is now home for Roger and Elle and they
feel that this is where they need to be now, to
help those in need around them. Elle is planning
to write a novel but her work with charity keeps
her busy. Roger has taken time out to work on a
novel and he plans to write children’s story
books. The unassuming couple have tirelessly
worked to help the less fortunate. Why do they
do this selfless work? Roger sums it up when he
says “Well, someone’s got to do it”.
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Our people
The focus on building the right infrastructure at dunia is
only superseded by the human capital. The best talent
from around the world with multi-cultural and diverse
experience, with a proven track record of success and
unique skills, makes dunia a great place to work in.
dunia runs on human power. We believe that this is
probably the most sustainable energy force in the world
when harnessed to its optimum. The quality of the human
capital remains the key pillar of dunia’s strength. That
is precisely why dunia invests extensively to enhance
capabilities and hone efficiencies that match the objectives
of the company and a shared vision of sustainable growth
and profitability. Training in functionalities, values, ethics
and technical certifications are part and parcel of the work
environment at dunia.
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Unity in diversity
Diversity at dunia is reflective of the diverse experience,
nationalities, genders, cultures and potential of the people
in the UAE. By nurturing diversity in dunia, we create a
stronger, more sustainable, more sensitive, and a more
serving proposition.
Diversity is about building on differences in skills,
learnings, culture, etc. to achieve results. It acknowledges
the collective efforts and the passion of a diverse group
of people who have played a pivotal role in dunia’s
achievements. This eclectic mix of our people brings to the
forefront a unique value to our customers beyond their
expectations, and helps them stay ahead.
Equal opportunity, acceptance and inclusive behavior
create an environment that encourages people’s potential,
passion and entrepreneurial enthusiasm which translates
automatically to the highest quality of service to dunia's
customers.
Sourcing the best talent from around the world spurs
every member of the team to work towards achieving and
delivering excellence in a professional and responsible
manner keeping in line with dunia’s values. Attracting,
sourcing and integrating high-caliber talent gives impetus
to the individual, the team and ultimately the organization,
making dunia a force to reckon with.
Empowered women…
with solid careers
At dunia, we take extra care and proactive steps to ensure
that women are empowered across the organization. As
women tend to be the biggest influencers in society, by
empowering them, we empower societies at large.
Women also have the greatest influence on youth which
symbolizes the future. This critical role that women play has
a significant bearing on how the younger generation views
the world.
By empowering women at dunia, we enable success
through the power of their positive influence on dunia's
value system.
62
Empowering women...
63
...enriching lives
64
Excellence through perseverance
65
66
Uma Ghosh Deshpande
The woman who commenced an entire fashion line and
television production company with just five hundred
Dirhams in her pocket and a load of gumption!
Entrepreneur, Designer, Fashionista, Television
Show Host and Producer: a host of avatars that
this young woman hailing from Nasik, a small
town in India, effortlessly dons.
Uma is the host of High Life Dubai, a television
series conceived and produced under the banner
of her own production company, Queen Bee
Productions. She is also a designer and has her
own fashion line, ‘Pepper By Uma’.
Uma’s nonchalance and adaptability to new
environments and challenges can be traced back
to her childhood when she was uprooted from
her familiar surroundings, activities and friends
every two years owing to the nature of her
father’s transferable job with the Indian Air Force.
Uma deems herself an average student and a
backbencher until grade five when she challenged
herself to excellence and kept at it throughout
her life. Being one of four siblings, she had several
family members to look up to and learn from.
Graduating in Fashion from SNDT, Uma left
home in a bid to claim her independence and to
work in Bombay to the utter alarm and chagrin
of her parents. Uma was sure that none of her
aspirations would see the light of day in a small
town like Nasik and Bombay was the next step
on her road to success.
The department of customer relations at the Taj,
Bombay was a far cry from fashion designing but
the dictates of independence meant that finances
had to be set in order and thus commenced Uma’s
67
career. Within four months, Uma moved on to
work as flight crew on board Jet Airways for the
next two years.
Uma’s marriage and her husband’s consequent
vocational shift landed her in Dubai in 1998 and
within fifteen days of her arrival, she commenced
work in sales and marketing at a recruitment
company.
Uma donned her ‘start all over again’ hat and
got down to brass tacks. She unlearned, learned,
trained, socialized, familiarized with the new
environment and its people, she went with the
flow of things until in 2000 with the birth of her
son, everything changed. In her own words,
“I found the confidence to pursue my calling and
realize my dreams”.
Uma was one of the winners for the 2005 Glad
Rags Mrs. India contest. On her return to Dubai,
she bagged the role of lead anchor in a local
show depicting the Dubai Shopping Festival
over twenty two episodes. This first television
experience made Uma realize that she was a
natural in front of the camera. Her experience in
the field made Uma confident that setting up her
own production company was the right thing to
do. Uma moved on to commence her own show
and out of that determination was born Queen
Bee Productions, her own production company.
High Life Dubai came into being on the 18th of
November 2005 and there has been no turning
back since then. Uma’s fashion line sees the
launch of at least two new collections every year
and is now sold at leading stores in UAE, while
her show is well into the sixth season and growing.
interior retail brand in UAE and other GCC markets.
Uma’s show aspires to be the last word in glamour,
the high life, luxury travel and hi-end living.
Five seasons and 225 episodes later, the show’s
expansion in reach and content has naturally
brought in more infrastructure and personnel.
Uma is determined to go on producing more TV
shows, ad films and feature films too, as well
as take her private label fashion brand to other
countries. She is driven by a need to prove to no
one but herself and constantly challenges herself
to achieve all that she dares to dream about.
Uma’s greatest asset is a combination of
determination and a collected demeanor that
becomes her easy attitude and ability to skim off
the surface of trouble without allowing it to affect
or disrupt her life.
Uma is inspired by many people including Richard
Branson, Shah Rukh Khan, Oprah, and Benazir
Bhutto. She has interviewed almost all visiting
celebrities into Dubai and hobnobs with the who’s
who of the featured world. Uma has a penchant
for autobiographies and voraciously absorbs their
stories. She is inspired by people and believes she
has something to learn from everyone.
Uma was nominated to the list of the 100 most
powerful Indians in the GCC for 2010. The Arabian
Business Magazine named her one of the 5 most
powerful women in the Gulf for 2010. Uma won
Ahlan Masala’s best TV presenter award for
2010, Youth Icon of the Year by The Centre for
Executive Education (CEE), and was voted the Most
Successful Asian Woman in Dubai by the Kohl
Magazine Poll. Uma is also the brand ambassador
for several brands spanning from fashion to home
making. To name a few, she currently represents
‘Nautra Bisse’, a cosmetic brand from Spain, as well
as represents ‘Danube Buildmart’ which is a home
68
Developing human capital...
Building the UAE National
talent pool
People constitute the core pillar of society.
Developing the national talent pool therefore is
critical for the success and growth of a country.
At dunia, we are committed to strengthening
these pillars by empowering young Emiratis
and making them a valuable workforce on
which the entire nation can be built.
It is because of this commitment and desire
that we, at dunia, run several student and
management level programs that are designed
specifically to train Emiratis and imbibe in them
unique and relevant skills and knowledge to
successfully manage world class businesses.
They are introduced to the latest developments
in technology and processes while being
mentored and coached by experienced
professionals thereby making them well
equipped to take on the world!
'Kawader dunia' Program is an initiative that
enrolls local talent into its fold by imparting
knowledge, inculcating work values and skills
and ultimately ensuring their professional
independence.
Armed with only the thirst to learn, the
young initiates are aptly guided and tutored
at three different levels depending on their
entry level of expertise - ‘Al Tamouh’ meaning
‘The Ambitious’, ‘Al Waaed’ meaning ‘The
Promising’, and ‘Al Nukhba’ meaning ‘The Elite’.
dunia's commitment to nurturing Emirati
talent stems from its inherent need as an
organization to give back to the country. It also
aims at engaging earnest and deserving talent
into the technique and expertise that created
the success story of a young and self-made
enterprise in a young and thriving economy.
dunia’s training & development
and progression
At dunia, the learning and development goals
are aligned to the overall business objectives.
Each employee in dunia is committed to
serving the customer and thereby the
organization as a whole is able to meet its
business objectives.
The dunia training academy is the place where
every employee is initiated into the fold with
core functional and skill based training. The
training needs of employees are identified by
function and role to ensure that each role is
staffed by people who are thoroughly well
– Dire
Direct
ct Att
Attent
Atte
enttion T
Thinking
Th
ing To
ools
'Kawader', which means pillars in
Arabic, is a program that invites and
admits Emirati talent into the world
of financial services, which is dunia,
to be trained and honed by only the
best.
Al Waaed - undergraduate parttime program
This program offers an exciting and
flexible work experience with dunia,
working in several functions while
studying. dunia’s aim is to enrich the
new generation with knowledge
and empower them by furnishing
them with opportunities to enter
69
Al Tamouh - graduate leadership
program
Al Tamouh underlines the use of
modern educational tools. Our
goal is to develop high-potential,
well-trained UAE nationals who
will become future senior leaders.
It starts with a three-month
management certification program
run by dunia in collaboration with
the prestigious SP Jain Center of
Senior Level
Midd
Mid
ddle
ddl
le LLevel
evel
Leadership
Accelerating growth & organizational success
A
Entry
En
y Level
Our unique UAE National talent development program
the corporate world at an earlier
stage of life. Upon joining dunia, the
selected candidates will go through
a two-week blended learning
program that will include:
• Building a financial services brand
• Marketing of financial services
• Campus to Corporate
• Corporate governance - AML,
Internal controls
• Credit and risk management in a
dynamic environment
• Working in diverse teams
One of the focus areas of training and
development at dunia is to ensure that the
employees' full potential and performance is
improved and harnessed. Employees are
constantly on a learning path and performance
on an upward trajectory.
Seni
Se
nio
ni
or Lev
vel
– Tar
arg
rg
get
eted Sel
ete
election
on
– Tra
rai
ain the
he Traine
ner
–P
Presen
entation
on Ski
kill
lls
– Coa
oachin
ng forr Perfor
formance
ce
dunia is committed to the cause of
building the national talent pool. Our
‘Kawader dunia’ Program is designed
to impart the best of knowledge and
knowhow to Emiratis at every level from those who are just starting out
in the work force to the experienced
professionals.
versed on the job requirements and have the
skills and knowledge required to perform
exceptionally well in all that they do. There are
also rigorous certification programs to build on
the employees' functional expertise.
Management in Dubai. The program
includes:
• Courses on management subjects
• Lectures by dunia’s business leaders who will share their vision,
experiences and achievements
• First-hand experience of working in
banking functions
• Team challenges
• Business plan design and
presentations
Al Nukhba - Qualified professional
program
This is a dynamic career growth
program for experienced
professionals to advance to the top
in their area of expertise. As part
of dunia’s high potential program,
experienced and seasoned UAE
nationals will be enrolled into
leadership programs, and external
business school diplomas and
courses.
– Effe
ffectiive Com
Commun
nic
ication
– Serv
S rviice Cu
Culture
e
– Work
kin
ing in di
div
verse tea
teams
– Six Thinking Hats
– External Leadership Programs
Senior Level
– Sales leadership
– Race For Results
– Managing Diverse Teams
Senior Level
– Leading teams for first-time
managers
Orga
Orga
Or
g ni
niza
zatio
ation
tion
ti
on
nal
al/p
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al/
/p
/pro
prro
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ess
ess
Be
eing morre effective
Senior
Se
or Levell
Senior Le
Levell,
Middl
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ev
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el
&E
Entrry Level
Le
– Anti
ti Money
Mo
La
aunderi
nd ring
ng/KYC
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ng
– Int
nte
ernal cont
ntrol
rols
– Code of co
ond
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ct
– Inducti
ction
on
– Code
ode
e of Co
onduct
nd
for
or Co
Colle
ections
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Func
Func
Fu
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onal
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Deliverin
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– Cons
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Cerrtifi
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fi
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ons
(Ba
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Interm
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– Wea
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Managem
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ification
– Col
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io Management
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Middl
Mid
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evel
–W
Win Win Conversa
rsations
– Adva
vanced Sell
llin
ing Skillss
– Corporate Pr
Product Certificati
ations
Entry Le
Level
Comp
Co
mpli
pli
lian
ance
an
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Adh
Adhe
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– Need
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– Cre
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– New hirre Produc
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Traini
ning
– Cre
redit Bas
asiics
70
Excellence through creativity
71
72
Mohammed Saeed Harib
Auteur, Maverick, Artist, Producer, Visualizer.... words that barely
begin to describe what Mohammed Saeed Harib represents with his
unlimited creativity and uncontained passion
Mohammed’s meteoric rise to fame commenced
with his grandmother, or rather his depiction of
her in Freej, the first ever Arabic 3D animation
series which opened the floodgates to a new
era in regional entertainment, bringing it up to
international standards in entertainment.
Freej opened to rave reviews when it went on
air in September of 2006. Freej which means
“neighborhood” in colloquial Arabic is the simple
yet uncanny story of four grandmothers who
go through their everyday life juggling their
conventions and pitting their traditions against
the rapidly evolving environment that they find
around them.
Mohammed describes himself as the typical
everyday average Joe with no special talent,
an average student at school and a drop out at
college, who went to study architecture in the
US but finally ended up pursuing an education
in art and animation from the North Eastern
University in Boston, much to the chagrin and
even sympathy of his peers and friends. It still
amuses Mohammed when he recounts about how
of the 150 Emirati students pursuing their higher
education in Boston, he was the only one who
chose to graduate in Arts.
73
The inception of Freej commenced when
Mohammed’s class assignment to animate super
heroes brought to the fore, not the heroes of the
1001 Arabian nights but his own admiration of
the few women who nurtured the family when
the men were away pearl diving for months on
end. In his memory, they managed their many
children, provided for them, educated them about
their culture and traditions and seemed to single
handedly cope with their responsibilities in a
super human way. These super human women
became the heroes of Freej for the entire world to
see in time.
Mohammed’s earliest memories of drawing are of
him gathering his cousins and creating games by
sketching scenes on paper. He traces his talent
back to his mother who he saw effortlessly
designing haute couture sketches on paper. He
also has great regard and admiration for his father
who supported him and better still never once
dissuaded him from his choices, the choices that
fuelled his creativity and went on to be a rage
in Emirati and Arab media and a monumental
success.
Mohammed’s early work experience spans
over the years 2003 to 2005 with stints at the
Dubai Media City’s marketing department and
the Technology and Media Free Zone Authority.
The creation of Freej as he says, “was a pure
coincidence!”. His boss in Media City at the time
coincidentally saw Mohammed’s sketchbook and
realized that he had a unique talent. He asked him
to get some production quotes which at the time
were back-breaking. Nonetheless, Mohammed did
not give up. He finally left in September 2005 to
establish his own firm, Lammtara Pictures, in order
to create Freej. He continued to strive for several
years to get the required funding for his creation...
until he finally did.
Freej fuelled a cultural revolution of sorts winning
fanfare across the Arab populace and media and
also gaining the attention of international media
from the CNN, BBC, NHK to the Los Angles and
New York Times. Freej has been consecutively
voted the number one show for all the three
seasons from 2006 to 2008. The fourth season of
Freej is awaiting its launch and will commence
airing from August of 2011.
At such a young age, of merely 35, Mohammed
was also chosen to be in the ‘Power List Top 100
Arabs’ which was published by Arabian Business
in 2010 highlighting the most influential Arabs.
Mohammed has been honored by the Ruler of
Dubai as the Youth Personality for the year 2006.
CEO Middle East named him the young CEO for
the year 2008. That very same year he won the
‘Best UAE talent Award’ at the Dubai International
Film Festival, the very festival he helped organize
during his stint at the Dubai Media city way back
in 2003. Mohammed was named by the Time Out
magazine as one of the top 40 cultural heroes
while the Arabian Business Magazine nominated
him to the list of the most powerful Arabs four
years in a row from 2008 to 2011.
Mohammed’s constant need to expand and stretch
his own boundaries and imagination saw the
conceptualization and creation of the largest ever
theatrical show to grace the Arab shores. Freej
Folklore was the realization of one man’s dream,
the coming together of hundreds of artists, the
roping together of one of the most sophisticated
technology platforms and their technical directors
and about AED 60 million in investment all coming
together at the highest of levels to dazzle the
audience. The success of Freej Folklore was just as
magical as the legends of Arabia that it narrated
through its dazzling live performances, animation,
music and special effects.
Mohammed constantly strives to inspire the
younger generation with his story of success.
He never tires of asking them to pursue their
dreams as he did himself and his proudest moment
in time was when he saw his sketches materialize
and come alive on the screen very much like the
dream that translated itself into the reality that he
lives today.
74
...empowering people,
enabling success
dunia's Management Associate
Program
dunia also offers a Management Associate
Program. The program is staggered across
several levels, starting with training the
employee on functional skills, assigning him or
her various cross functional projects, designing
a career development plan and constantly
providing mentorship support.
Leveraging on both external and internal
subject matter expertise, dunia training
academy is the place where quality education
is available to all the employees. The
creation of an environment that doubles
as a training ground even in the process of
their employment experience makes for a
wholesome and enviable skill set that one is
endowed with at dunia.
Limitless growth
We constantly strive to attract people who
can think big and execute well. We believe
in attracting and developing the best human
capital – the kind of people who have the
requisite knowledge and skills that can be used
to power businesses and create value for all
our stakeholders.
Skills
Ski
lls and knowledge
ll
g for which
whic
ich
p ple
peo
pl ar
are
e will
will
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g to
to pa
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dunia
dun
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ia hum
human
an cap
pita
itall
Skills
Ski
kills
l and knowledge
g that add
ad
dd
value
val
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to th
the co
compa
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Proprietary
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y skills and
knowle
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Academ
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knowle
kno
wledge
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dge
g
dunia’s Total Rewards Approach
At dunia, we follow an overall rewards philosophy when developing specific strategies and programs
"dunia is relentless in
its passion and focus on
empowering people,
enabling success, and
enriching lives."
Laurent Depolla
Executive Director, Mubadala
75
Compensation and benefits – dunia adopts a competitive compensation and benefits program that is
benchmarked to the best in class employers in the industry. It is dunia’s objective to pay fairly and reward
for the job dimension, seasoning and performance. We encourage prospective candidates to join us for
development and career opportunities that we offer to our employees.
Performance based rewards – Long-term and short-term reward programs that directly impact and influence
the company goals are adopted to ensure the company objectives are met and employees are rewarded.
Recognition – Through recognition and reward programs, the right behavior critical for the company’s success
is encouraged.
Development – Employees are provided with the right professional development avenues to develop and
hone their skills through coaching, mentoring, classroom and on the job training.
Career opportunities – dunia recognizes that all employees have aspirations and ambitions to develop their
careers. Therefore, opportunities to realize employees’ career aspirations will be provided based on their
potential and skills. The company will
focus on growing its people as it grows.
76
Being true to our beliefs...
...delivering a rewarding experience
Consistent and enduring performance is the
focus of all employees at dunia. This first and
crucial step initiates them into the limitless
club that keeps its doors open forever. As
the business grows, it develops the capability
to provide limitless growth avenues to each
individual. There are no limits for the right
talent. dunia provides myriad opportunities for
its people to grow and develop. The trajectory
of growth of each individual is driven by one’s
own ambition, performance and skills.
The various dimensions of the job are the key
pegs that employees must fasten to the ground
to secure their climb up to greater heights.
Skills, knowledge, capability and the ability to
solve problems form the various dimensions
to any job that one may aspire to. Technical
skills ensure performance while human skills
ensure team management and delegation of
responsibilities and finally, conceptual skills
deliver the edge to performance with strategies
that help function at organizational levels.
Consequently, there are no limits to individual
development in dunia. The only limits that
exist are the ones that are set by the
individuals for themselves. dunia provides
ample opportunities to grow and further
oneself depending on one’s own ambition,
performance and holistic skills. Consistent
performance and constantly raising the bar
of all employees at dunia is a key focus.
This first and crucial step initiates them into
the limitless growth club within dunia. dunia
provides them with the environment where
they can continually challenge their skills
and the boundaries of their knowledge which
enables them to grow.
77
Progressing along in the pursuit of technical,
human and conceptual skills, one can decide
at every corner, between choices on their skills
and capabilities development. These choices
range from enhancing technical skills,
acquiring additional skills to diversification of
skills that ultimately equip them to perform in
leading roles.
Varying levels of seasoning makes for the
ability to detect the ‘crème de la crème’ of
the workforce. Dependent on nothing but the
employee’s potential to grow and perform, an
individual can measure up from being good to
excellent. Every role has the need for a set of
requisite skills within the job dimensions and
specific seasoning, all of which are indicators
that are monitored closely to ensure that the
employee is moving up on their growth graphs.
Constant encouragement and choices are made
available to the discerning employee guided
by key factors made up of, performance, job
dimensions and seasoning. Growth comes
naturally to employees who perform strongly,
deliver on their job dimensions by achieving
their skill requirements in terms of technical
skills, human skills and, conceptual skills and
season with the company.
78
Enabling success...
...through diversity
Raising the Bar
At dunia, Performance Management is not
just an annual appraisal cycle that drives
compensation and benefits but a feature
embedded in the daily work life of each
employee. The performance management
system does not merely evaluate individuals
annually but provides them with:
• a clear set of goals and expectations from
each individual and their roles
• a regular feedback mechanism where
their supervisors and the management
team work together to develop them as a
professional all round the year
• a continuous improvement process that
shows each employee their areas for
improvement and means to improve
themselves in the form of support and
constant mentoring
• a tool that drives excellence and appraises
employees on stringent standards and also
enforces a normal distribution curve called
the Excellence Curve, which helps dunia
identify top notch performers and develop
them into pillars of strength.
Performance Management System
Performance
Goals
Career
Development
Continued
Monitoring
Employee
Mentoring
and Coaching
to develop
skills
Learning &
Development
Reward &
Recognition
Continuous
Performance
Improvement
It’s a Win-Win Situation
dunia is on an onward trajectory to success and
excellence and carries forward all its members,
clients and employees alike in the same spirit.
Every employee gets rewarded not just on
compensation but on a total rewards basis,
which includes compensation, benefits,
performance based rewards, growth,
development, recognition. The reward
principles are based on creating value and
positive impact in the lives of dunia’s diverse
and talented workforce.
The dunia Credo
We believe in...
Customer commitment
We reach out to our customers proactively and build meaningful relationships that make a positive impact in their lives. Our commitment is
realized through listening and understanding their needs, and in the design and delivery of quality products and services. We treat them fairly
and with respect.
Value of our people
We have empathy, mutual respect, trust and unconditional support for each other. We recognize the leadership potential in every individual
and provide opportunities to learn and grow. We are a results-oriented team and work together to achieve our goals and enable success.
Serving the community
We serve our community by respecting their traditions and enriching their lives through our work, spirit of volunteering and resources. We are
a responsible player and believe action is better than words.
Striving for excellence
We have a passion to excel and strive for excellence in all that we do. We succeed when we have exceeded customer expectations. We
encourage creativity and innovation and always “THINK BIG” to maximize our potential.
Integrity and ethics
Integrity and ethics are at the core of our value system and embedded in all that we do. We uphold dunia’s reputation with pride, and conduct
our business with all stakeholders, customers and regulators with the highest ethical standards and transparency. We are accountable for our
actions.
81
82
Excellence through focus
Retailing success
83
84
Nitish Jain
From entrepreneur to educationist; the man who brought
Global Management trends to Business Administration enabling
a greater understanding of international business… and taking
S P Jain’s Global MBA program to 9th place in Asia and 68th in the
World as rated by Financial Times, UK
Nitish Jain is eternally inspired by his grandfather
late S P Jain and rightly so for he was a freedom
fighter, philanthropist and visionary. It was S P
Jain’s endowment in 1981 to a charitable trust
that sowed the seed to the S P Jain educational
institutions with the first S P Jain School in
Mumbai.
Nitish wasn’t always an educationist. He earlier
promoted a successful branded foods company in
India that he sold to a US Fortune 20 company. He
then debuted the international leg of the Indian
b-school S P Jain, and established a successful
presence in Dubai(2004), Singapore(2006) and
soon to be in Sydney (2012).
Since 2004, the institution has moved from
strength to strength blazing a proven track record
along the way to become one of the premier
educational institutions in the UAE.
The management degrees at S P Jain capture the
true international flavor with student experiences
that are both multi-cultural and multi-national.
Global exposure is a norm as students rotate
through its campuses, enriching the academic
journey.
“Most universities have multiple programs and
one campus. We have multiple campuses and one
program” sums up Nitish Jain, President of
S P Jain Center of Management, Dubai - Singapore
- Sydney.
The Financial Times, UK, in their latest 2011
survey ranked S P Jain’s Global MBA program 9th
in Asia and 68th in the World. S P Jain has also
clinched other top rankings over time. The A C
Nielsen’s brand audit study in 2008 ranked S P
Jain as the #1 Institution of Higher Learning in the
UAE.
businesses. “We are the Apple of business schools”,
he says proudly, given S P Jain’s culture of constant
innovations.
An MBA graduate from Cornell University,
USA, Nitish Jain has recently been awarded
“Outstanding contribution to Education” by CMO,
Asia in 2010. He is the Education Chair of the
Executive Committee of FICCI – the apex business
organization in India, The Young Presidents
Organization, USA and also contributes actively to
social causes.
Nitish Jain’s defining moments have been the
exciting milestones, accreditations, rapid growth
and progress that S P Jain Center of Management
has achieved in such a short span of time. He
prides himself as a visionary in the field of
education… which he truly is, as he now leads a
school which is one of the youngest to be ranked
by Financial Times, UK.
S P Jain has been accredited by AMBA, UK,
one of the world’s top authorities for quality
accreditation of MBA Programs. The center
earned its well deserved accreditations and
rankings after being subject to a series of rigorous
and exacting tests and surveys. Nitish believes
that innovation is the key value driver for most
85
86
The dunia
winning spirit
87
88
Our processes
dunia focuses on several fronts in order to ensure that
not only are its core processes capable of delivering
value to the customer, but also can consistently and
predictably increase shareholder value. We achieve
these goals through strategic cost management,
setting and meeting expense efficiency targets,
implementing processes for strong risk management
and installing a high institutional Corporate
Governance framework.
The dictates of strategic
cost management
Strategic cost management at dunia means
scrutinizing every process to spot inefficiencies,
identifying the cost drivers and optimizing the
expenditure to enhance revenue lines at every
level in the day to day operations of its business.
All operational decisions are thought out to keep
in line with an ideology of lean transformation
thereby enabling increased customer value,
growth and profitability. Business success and long
term sustainability meant that a stringent cost
management strategy was created and adopted.
Productivity levels are relentlessly reviewed at
various points across the organization ensuring
that steps are in place to guarantee efficiency at
all times. The adoption of best practices viable in
the current environment with the right tracking
measures ensures that productivity is not stifled or
compromised at any level.
Cost/Income
(%)
600
Stead
535
y path
500
400
to pro
fitabil
300
255
230
200
197
100
0
ity
331
Q1-09
Q2- 09
Q3-09
Q4-09
Q1-10
124
124
103
Q2-10
Q3-10
Q4-10
Corporate Governance structure in dunia
dunia constantly strives to enhance its revenue
lines with an expanding array of financial options,
supported by extraordinary service. A state-of-theart delivery mechanism meant increased costs at the
initial stages but it also entailed garnering a growing,
dedicated and loyal client base that would never be
compromised at any stage.
Creation of diverse strategies whereby customer
behavior is monitored very closely and positive track
records are immediately rewarded with enhanced
credit facilities and an expansion in the available
product choices has further enhanced innovation
at dunia.
The organizational strategy at dunia requires keeping
costs and expenses in check at all times without
compromising customer expectations. Our strategic
and early investment in technology and straightthrough processes (STP), helped ensure that expenses
do not grow at the same pace with revenue growth,
ensuring a strong positive operating leverage, while
becoming a "low cost provider".
Our processes have been created to ensure an
exceptional customer experience at every
interaction, while providing the business with a
predictable growth designed to ensure profitability
and sustainability.
Corporate Governance
Corporate Governance at dunia is a combination of
the best of international practices with a framework
that is tailor-made to comply with local practices and
legal standards. It is based on OECD principles, local
regulatory guidelines, legal regulations and bestin-class practices adopted by reputed international
banks and financial institutions.
dunia’s Corporate Governance entails a set of
relationships between senior management, Board
of Directors, shareholders, employees and other
stakeholders, and a robust structure with regulatory
and corporate policies through which dunia’s
strategic objectives are established, pursued,
monitored and attained.
Tier One Committees
The Management Committees ensure the management
of balance sheet liquidity and Return on Equity,
management of the portfolio, and introduction and
approval of products, services and related limits;
management of banking risks, risk limits and parameters
in line with corporate ethos; management, review and
monitoring of credit risk and collection and risk/reward
optimization; management of monthly performance, its
review and improvement; management of the optimal
use of IT resources and business needs; management
of talent; management of Vendor relationships and
disputes.
These committees are formed solely to expend
efficiencies across critical areas of business. dunia’s Tier
One Committees are:
• Asset and Liability Committee
• Product Committee
• Business Risk and Compliance Committee
• Credit Risk Committee
• Executive Operating Committee
• IT Steering Committee
• Human Resources Committee
• Vendor Management Committee
Tier Two Committees
The Board Committees ensure that strategic goals are
set and delivered, while smooth business operations are
in place. They ensure that sound business practices and
controls are in place across functions. They also monitor
business performances closely and ensure risk mitigants
are in place. They also review employee policies,
including compensation, to ensure that they are fair and
in line with market trends. dunia’s Tier Two Committees
are:
• Audit Committee
• Risk Management Committee
• Employee Remuneration and Nomination
Committee
Ongoing monitoring and evaluation is key to dunia’s
governance framework (with its four key pillars viz.
Strategy, Compliance, Performance, and Accountability)
and integrated into key governance related documentation
which include for example, Strategic business plans,
Risk management plans, Financial planning, budgeting
& reporting, Corporate Governance manual & Code of
Conduct, Compliance & Audit Charters, Accounting &
Operational policy manuals, IT & Security Management,
Fraud Controls, Quality Assurance manual and Vendor
Management.
dunia has an independent and effective Board, the members
of which are leaders in their own right. The standing and
diverse international expertise of the Directors qualify them
to effectively fulfill their responsibilities to the stakeholders
by maintaining the highest ethical and governance
standards.
A two-tier structure of Corporate
Governance
A two-tier framework oversees the efficient execution of
dunia’s corporate duties, while ensuring responsible and
transparent Corporate Governance at every level of its
functioning. The Management Committee members form
the first tier, while the second tier consists of the Board of
Directors.
This framework has facilitated effective oversight through
a robust system of checks and balances. Our Corporate
Governance structure provides for the independent
handling of the functional portfolios while catering for
continuous sharing of information and knowledge, ensuring
that accountability and decision making go hand-in-hand,
and retaining ultimate answerability to the Board.
The Management Committees in dunia are designed to
ensure that the business is run in the most efficient,
profitable and sustainable manner possible.
The Board of Directors, which has the ultimate
responsibility to uphold the company’s objectives, provides
strategic direction to dunia and facilitates the smooth
running of all operations through the functioning of its
sub-committees (Audit Committee, Risk Committee and
Employee Remuneration and Compensation Committee).
The Corporate Governance framework is a key
enabler which aids robust decision making in
dunia. It also facilitates continuous improvement in
relation to Strategy, Compliance, Performance and
Accountability.
89
90
...intrinsic to dunia's strive for excellence
Governance, Process Control,
Risk Management...
Internal Audit and Controls
Internal Audit in dunia has enabled dunia to regularly
develop and periodically enhance its set of comprehensive
policies and procedures. It has also helped strike a practical
balance between accountability and responsiveness.
Internal Audit at dunia is proactive and provides an
independent assurance to the Board of Directors.
A comprehensive mechanism of risk assessment drives
differential review cycles based on risk levels. All units
are independently reviewed based on their review cycles
(approved by the Audit Committee) to identify potential
risks, safeguarding dunia from any potential regulatory
and corporate policy breaches. Periodic reviews of key
processes have also ensured that gaps which are identified
are immediately addressed, productivity enhancement
measures are initiated and the end-to-end processes are
controlled.
External Audit controls and Compliance &
Regulatory controls
Internal Audit & Control
Independent review of all departments to ensure that
appropriate controls are firmly in place to mitigate
potential risks identified
To fortify and institutionalize the risk management processes at all
levels, dunia created its 'Three Lines of Defense' model to oversee
its strategic, financial and operational risks. The 'Three Lines of
Defense' model facilitates robust risk governance at various levels
of the organization.
dunia’s External Audit oversight with its on-going review
of policies and processes give dunia a third-eye view of the
business. dunia’s performance is consequently enhanced as
an on-going process.
External Audit Controls
On-going review of policies and processes with
external auditors.
Compliance and Regulatory Controls
Comprehensive review to ensure organization is in
full compliance with dunia’s policies and regulatory
requirements.
and evaluation of the policies, procedures and systems
is undertaken. This has facilitated a steady stream of
efficiencies into the system. In-house compliance training
programs conducted reinforce across the organization its Code
of Conduct, ethics and regulatory compliance requirements.
Acc
ou
n
gy
te
Organizational Members
– Eac
ach
h fun
funct
ncttion
ion
n
(si
sing
ngly
ngl
y & jo
joi
oin
intly)
– In
Indi
ndivi
divid
vidual
ually & as team
m
mem
m
embe
bers
– Rol
oles & re
responsi
nsibiliti
tie
es
– Risks & contr
trols
– Fina
nanciall & ope
peration
onal
manag
agemen
ent & re
reporrtin
ting
dunia
Management
Pe
r
f
or
m
ce
n
a
li
Board
Members
ce
an
dunia
nia
C
o
mp
– UA
UAE
AE leg
leg
egisl
isl
slat
atio
ati
tio
on
ons
ns
– CB regu
egu
gula
ulat
lattio
ions
– Cont
ont
ntracctual obli
bligation
ons
– Fidu
Fiduci
Fi
ciary dut
duties
– Code off condu
uct
– dunia’s
a’s polic
liciies &
procedure
pro
ures
– POA & dele
legation
ons
Risk Governance in dunia
ity
bil
ta
– Bus
usi
sine
nes
esss plan
lans
an
nss & p
progr
rograms
– Risk
k Ma
Ma
anag
nag
na
gementt
– Tec
echn
ech
chnollogy Arrch
chitectt
– Differe
Dif erentiate
Dif
ted
d serv
rvic
icing
g
– Fin
inancing
ng planni
ning &
budget
geting
– Stak
takehold
lder Manage
gement
nt
– HR
H Plan
lannin
ng
Str
a
As independent assurances need to be provided to the
Board and the senior management, regular examinations
Audit, control and compliance in dunia
– Lead
ead
der
ers
rsh
hip
hip
p
– Et
Ethi
thica
hical & winnin
ing cultture
– FFinanci
inancial & operati
tio
onal
per
erfforman
ance
– Resourc
R urces, mi
mix off skills
s s&
ind
depende
dence
At the first level of defense, risks are managed at the line business
units using maker-checker controls and a self-assessment process
(Risks and Controls Self-Assessment – RCSA). The RCSA template
used in dunia provides a risk description, captures the inherent
risk in each process, the control mitigants and the residual risks.
The line business unit also tracks a set of key risk indicators
applicable to the business unit. Exceptions highlighted from
the RCSA review process and Key Risk Indicators which breach
benchmarks are escalated to management along with material
incidents/exceptions which warrant management attention. In
addition, a Quality Assurance process reviews the evidence of the
self-assessment checks and performs sampling of key controls to
provide independent assurance on the robustness of the underlying
controls and the self-assessment. The risks covered span crossfunctionally in this Quality Assurance process across the whole
family of risks – credit, market, operational, reputational,
regulatory, PR, Business Practice, vendor related, employee
related, customer remorse related, strategic risks, technology risks,
product risks, competitive risks, compliance risks, people risks, etc.
The results of the sampling are graded and clustered across the
organization based on severity, ageing, recentness and frequency.
The second level of defense is through the management team
with the Business Risk & Compliance Committee (BRCC) and
specialized committees including the Assets and Liabilities
Committee, Vendor Committee for procurement, Technology
Steering Committee, Credit Risk Committee, HR Committee
for Employee Matters, Service Committee for Customer Issues,
Regulatory Review Matrix Review for Regulatory Compliance and
Monthly Proofing Process for Internal Control all form a part of the
risk management processes.
The third level of defense is provided through the Board and
the Board committees comprising the Risk Committee, the Audit
Committee and the HR, Remuneration and Nomination Committee
get regular updates on all issues. Regular reports on performance
and Key Performance Indicators that chart out performance trends
are shared with the Board.
Compliance & Regulatory controls allow dunia to strictly
comply with the letter and spirit of the laws and
regulations. This means that in addition to implementing
the local regulatory requirements, dunia adopts global
standards and best-in-class practices. With these controls
and checks firmly in place, dunia ensures compliance with
internal policies and external laws and regulations. These
controls are now inter-woven in the fabric of the everyday
business.
Fortified Risk Management
to enable comprehensive risk
reward leverage
The Risk management framework at dunia has allowed
for judicious operations of its various departments within
acceptable and clearly defined risk norms. The close
interaction between the Board and the senior management
team within the boundaries of a robust risk framework has
ensured effectiveness in mitigating risks at dunia.
The foundation of the risk management framework in dunia
is based on a principles-based approach. The core guiding
principles of dunia’s risk philosophy strongly emphasize
capital preservation of the company by building controls
to limit damage on account of event shocks and ensuring
sufficient liquidity at all times.
dunia’s risk management approach has helped reduce
earnings volatility. Through the use of analytics and
constant testing to understand the impact of credit policies
on portfolio performance, risk management in dunia has
provided for predictability of performance.
By placing a premium on long-term strategic decisions, our
risk management framework has ensured that our earnings
are sustainable and performance is consistent.
Source: Government of Australia Corporate Governance Handbook (adaptation)
91
92
"Don't strive to be perfect. Strive for excellence."
Victoria Principal
Our approach towards ensuring
Risk-Reward balance
At dunia, our focus of business is not just on returns,
but on risk adjusted returns. There is a clear culture
of understanding risk reward relationship and
leveraging this for profitable growth. Consequently,
the objectives and policies of the business are guided
by long term risk-reward balance and sustainability
rather than short-term gains.
Risk Adjusted Yield (RAY)
(%)
g
reasin
d inc
ld
hy an
Healt djusted yie
a
risk
25
22.2
24.5
20
15
10
5
0
2009
2010
Our continuous focus on Credit Cycle Management
has brought about the required disciplined rigor to
maximize revenue while minimizing risk.
Product Planning in dunia is done jointly by the
Marketing and Product team along with the Credit
Risk team who bring in experience from multiple
businesses and geographies. A seasoned Analytics
team supports this process, ensuring that credit
policies and norms are crafted with the benefit
of rigorous data analysis. Every financial solution
offered by dunia is based on a deep understanding of
the customers’ profiles and their financial patterns,
enabling differential pricing based on the underlying
risk and adequate risk adjusted spreads.
Since credit acquisition in dunia is done with the
help of a strong verification process, we have
effectively minimized fraudulent and risky sources.
A risk grading mechanism based on demographic
criteria together with the use of Credit Bureau data
in underwriting also helps us minimize acquisition of
customers with a history of credit underperformance.
Credit Maintenance paces growth to ensure risk is
minimized with the testing and subsequent scaleup of low risk profiles. Accounts are maintained
with extensive use of Analytics to identify revenue
opportunities. Thereafter, the Collections unit uses
robust capacity plans and credit scores to assist
clients in helping them make timely payments in line
with their agreed obligations on their credit facility
with us.
93
94
Excellence through innovation
95
96
Nilesh Ved
From 1 brand to over 50…. from 1 store in one country to
over 600 stores in 14 countries, becoming a true icon in the
retail industry
Nilesh Ved, a renowned name in the retail
fashion industry, is the chairman and founder
of the Apparel Group. A market leader in retail
enterprise, the business had modest beginnings in
Dubai with its first store in Burjuman in 1996 and
has now expanded its retail grip internationally to
over 14 countries spanning four continents.
Nilesh Ved was born and brought up in Dubai and
Oman. His family moved to Oman in 1904 and
have made their mark in the business ever since
in the Middle East. Coming from a background of
established and successful businesses meant that
he would naturally inherit their entrepreneurship
and would continue the legacy of his family
business in bullion trading and gold retail.
Nilesh’s fascination for retail commenced with his
wife’s foray into it with their first ever store,
a Bossini franchise at Burjuman in Dubai. There
has been no turning back ever since. The initial
stages of the business saw no strategy or
planning and Nilesh met with several failures
along the way. Even in the midst of an exacting
environment when Nilesh had to leave some
ventures behind while he began new ones, he
never once lost sight of success.
Nilesh recounts 1998 as a turning point for the
Apparel Group when he clinched the deal with
Nine West. Thereafter, bringing Aldo to Dubai
in 2001 was also a very important milestone
and since then the sky has been the limit. Today
Nilesh leads the ever expanding Apparel Group to
position itself as one of the top global retailers.
The Apparel Group aims to open 1000 stores
worldwide and position itself as a global leader in
the retail business. Nilesh’s mantra to success is
his passion, hard work, honesty and consistency.
He does what he loves and loves what he does!
His passion for work is paramount that it leaves
very less to be desired outside of the business
realm. Any time away from work is spent with
his family.
Nilesh Ved has been recognized both on a
personal level as well as on the business level
with several awards. The Apparel Group with
its growing family of over 5500 members has
won many accolades. Most recently, they were
recognized in the Dubai Quality Awards 2011 for
being one of the top achievers and being best in
service. They also received the prestigious Sheikh
Mohammed Bin Rashid Al Maktoum Business
Award for 2007, the Dubai Quality Appreciation
Award for 2006, Dubai Human Development
Appreciation Award for 2006, Super Brands
for 2008-09 and various other regional and
industry awards.
The retail tycoon considers the people at Apparel
Group as his most valuable asset and feels
happiest when he contributes to changing the
lives of people around him with better standards
of living and healthcare. He wants to be
remembered for ‘changing lives’ and giving others
the opportunity to succeed… just like him!
Nilesh is inspired and takes up after both the
father figures in his life, his father and his fatherin-law. He says that he is a winning combination
of his father’s conservative business approach and
his father-in-law’s aggressive business approach.
Nilesh has never shied away from taking a call
and making bold decisions, whether it is the
opening of new ventures or the closing of a bad
one. He is clinical about taking a call for the
success of the entire group at all times and his
numbers and the inventory have always spoken
its truth to him.
97
98
Our financials
Strong top-line performance
dunia’s launch in September 2008 coincided with the
onset of the global macro-economic crisis, and the UAE
too was impacted by the ensuing economic slowdown.
In responding to the unprecedented stress environment,
dunia’s management proactively realigned the business
strategy to mitigate potential risks and lay the foundations
of a predictable, profitable and sustainable franchise.
The realignment strategy encompassed all key drivers of the
business, including higher quality sourcing through a tighter
target market definition and underwriting criteria, better
pricing to absorb higher potential costs on funding and
credit, spend-smart initiatives to tightly manage expenses,
proactive impairment provisioning to further insulate the
portfolio from future credit shocks, and strong focus on
liquidity management by launching customer deposits and
lining-up credit facilities with banks.
dunia’s strategy realignment and careful recalibration of its
operating model since launch in 2008 has helped deliver
strong financial performance in 2010, and successfully
resulted in the franchise being firmly positioned on the path
to sustained profitability.
Customers and customer receivables
Despite a tough operating macro-economic environment,
dunia has delivered strong financial performance in 2010
– across top-lines, bottom-line and all key performance
indicators. Moreover, the business has been proactively
realigned to not only achieve a strong growth trajectory in
2010, but also to position it for accelerated growth in 2011
and beyond.
While new sourcing on the lending side remains paced and selective to ensure prudence in a stressed environment, loans and advances to customers
have increased by 106% to AED 357 million in 2010, driven by increased sourcing of secured assets, targeted cross-sell and customer deepening
initiatives based on dunia’s “test, grow and accelerate” approach.
dunia’s customer base continues to grow strongly, with number of customers increasing by 100% to 58,000 individuals in 2010, compared to 2009.
Customer growth is driven by continued gains in sales efficiency and productivity of the acquisition engine, launch of new and innovative financial
solutions, and focus on acquiring transactionary customers through new initiatives like dunia’s payroll proposition.
60
400
350
300
250
200
150
100
50
0
50
40
30
2010 summary financials
Amounts
(in AED Mln)
Customers (‘000s)
Customer Receivables
Revenue
20
2010
Absolute
Improvement
(2010 vs. 2009)
%
Improvement
(2010 vs. 2009)
28.9
57.7
28.8
100%
173.1
356.7
183.6
106%
2009
45.6
106.0
60.4132%
Net Income
(116.5)
(87.8)
28.7
25%
Cost Income
299.4%
143.1%
156.3%
52%
Cost of Credit
25.6%
15.2%
10.4%
41%
(43.4%)
(28.2%)
15.2%
35%
Return on Equity
dunia has achieved triple-digit top-line growth (customers, customer loans and advances, and
revenue), and a healthy 25% bottom-line growth in 2010. Reflecting strong cost efficiencies and
improvement in credit quality, dunia’s cost-income and cost of credit ratios have improved by 52%
and 41% respectively, over 2009.
10
0
Customer base has doubled from 29,000 in
2009 to 58,000 in 2010 (100% y-o-y growth)
Revenue
dunia’s revenue has increased by 132% on full year basis to AED 106 million in 2010. Moreover, the underlying revenue momentum in recent months
has accelerated even faster, with December 2010 revenue 142% higher versus prior period, indicating continued strong momentum ahead.
Revenue
(AED Mln)
132% revenue growth
2010 vs. 2009
120
106.0
100
80
0
45.6
33.7
30
15
2008
2009
2010
0
142% revenue growth
Dec 2010 vs. Dec 2009
12.0
12
8
15.9
6
4.9
4
2
5
6.2
Revenue
(AED Mln)
10
10
Full year revenue has more than doubled from
AED 46 Mln in 2009 to AED 106 Mln in 2010
(132% y-o-y growth)
99
112
% revenue growth
Qtr4 2010 vs. Qtr4 2009
35
20
60
20
Revenue
(AED Mln)
25
40
While dunia’s year-on-year performance has been strong, a more granular analysis of dunia’s operating drivers show the
underlying performance trends, and provide detailed insights on the business momentum going forward.
Loans and advances to customers have more
than doubled from AED 173 Mln in 2009 to
AED 357 Mln in 2010 (106% y-o-y growth)
Qtr4 2009
Qtr4 2010
Quarterly revenue has also more than
doubled from AED 16 Mln in Qtr4 2009 to
AED 34 Mln in Qtr4 2010 (112% q-o-q
growth)
0
Dec 2009
Dec 2010
Revenue growth in recent months is even
higher, with December 2010 revenue of
AED 12 Mln being 142% higher compared to
December 2009
100
Above trends are evidence of tight cost discipline and control on expenses resulting in strongly positive operating leverage in 2010, as expenses
are reducing on an absolute basis despite continued strategic focus on building long-term capabilities through increasing products and distribution
infrastructure, and exponential growth in customers, loans and advances, customer transactions and processing volumes.
Revenue quality
dunia’s strong revenue trajectory in 2010 is a direct consequence of the realignment strategy, and is driven by 3 main factors:
• Healthy yields on customer loans and advances
• Risk-tiered pricing strategy
• Increasing contribution from fee-based income
Strategic cost management
This has resulted in a richer, more diversified revenue mix that is less susceptible to compression risk, while simultaneously ensuring strong
operating leverage.
Fee/Total revenue
Interest
dunia’s management focuses not just on growing revenue and reducing absolute expenses (a “spend-smart” discipline), but also to carefully calibrate
the drivers of revenue and expenses to ensure strong performance across key efficiency ratios like Cost/Income, Expense/Customer Receivables and
Operating Leverage.
Fee
120
25
40
35
30
25
20
15
10
5
0
100
80
60
40
20
0
While full year revenue has grown by 132%
in 2010, fee income has grown by 200%
compared to 2009, reflecting the focus on
increasing fee-based income
Expense reductions are driven by a proactive “spend-smart” approach and an on-going focus on strategic cost management. Select examples of this
approach are highlighted below, which are immediately accretive and will continue to generate incremental saves in subsequent years.
• All hiring is focused on the front-line, particularly in customer-facing and revenue generating roles
• Realignment of costs towards the front-end, with back/middle office headcount frozen at 2009 levels
• Cost renegotiation with vendors and service providers
• Tight controls on all discretionary expense lines
20
15
Expense efficiencies
10
Resulting from the on-going focus on strategic cost management, dunia’s Cost/Income, Expense/Customer Receivables and Operating Leverage ratios
have substantially improved in 2010, reflecting strong expense efficiencies and rapidly improving economies of scale.
5
0
Yield on loans and advances to customers
have improved to 38.4% p.a. in 2010
(13% increase over 2009)
Contribution from fee income has increased
to 21.8% in 2010 from 16.9% in 2009
(reflecting a substantial 29% improvement
over prior period)
Growth in business drivers outpace growth in expenses
Cost/Income and
Expense/Customer receivables
(%)
Cost/Income
Expense %
250
250
200
150
At dunia, strategic cost management is an ongoing management theme. The management’s focus is not only to reduce expenses, but also to fully
leverage capabilities to maximize revenue for every Dirham spent. This discipline ensures that growth in business drivers always exceeds growth in
expenses, resulting in strong operating leverage.
100
Core Expenses
2 % expense growth (AED Mln)
150
120
136.6
138.9
120.1
90
60
30
0
2008
2009
2010
40
35
30
25
20
15
10
5
0
Core Expenses
4 % lower expenses (AED Mln)
2010 vs. 2009
3
% lower expenses
Dec 2010 vs. Dec 2009
Qtr4 2010 vs. Qtr4 2009
36.5
35.1
12
Expense %
200
dunia’s total operating expenses are at AED 152 million in 2010. Excluding one-timers, core operating expenses of AED 139 million in 2010 are only
marginally higher compared to AED 137 million in 2009.
12.0
11.7
Dec 2009
Dec 2010
Cost/Income
300
Expenses
Core Expenses
(AED Mln)
lower cost/income ratio
Cost/Income and
Expense/Customer receivables
(%)
0
2009
2010
Cost/Income
Expense %
250
243.5
150
100
100
50
50
0
lower cost/income ratio
expense/customer receivables
200
104.0
150
50
lower cost/income ratio
expense/customer receivables
Cost/Income and
Expense/Customer receivables
(%)
Qtr4 2009
Qtr4 2010
0
38.0
Dec 2009
Dec 2010
2010 Core Expenses exclude AED 12.8 Mln of one-time impairment of Intangible Assets
2010 full-year Cost/Income ratio has dropped to
131% (56% better compared to 2009).
Similarly, Expense/Customer receivables ratio
has dropped to 50% in 2010 (64% better
compared to 2009)
Trends in recent months have improved even
further, with Qtr4 2010 Cost/Income ratio at
104% (55% better compared to Qtr4 2009),
and Qtr4 2010 Expense/Customer receivables
ratio at 40% (56% better compared to
Qtr4 2009)
Similarly, Cost/Income ratio in December 2010
has further reduced to 98% (60% lower
compared to December 2009), and
Expense/Customer receivables ratio has further
improved to 38% (53% better compared to
December 2009)
10
8
6
4
2
Qtr4 2009
Qtr4 2010
0
2010 Core Expenses exclude AED 12.8 Min of one-time impairment of Intangible Assets
While dunia’s customer base, receivables and
revenue have more than doubled over 2009,
core operating expenses have grown by only
2% in 2010, reflecting strong expense
discipline and control
101
Moreover, recent trends show that expenses
have actually reduced in absolute terms, with
Qtr4 2010 expenses 4% lower compared to
Qtr4 2009
Similarly, December 2010 expenses are 3%
lower in absolute terms compared to
December 2009
102
As expected, the improvement in delinquency flows and overall credit quality of the portfolio has resulted in significantly lower General Provisions
in 2010, whereas Specific Provisions in 2010 have stabilized compared to 2009.
Operating leverage (JAWS)
dunia has achieved a positive operating leverage of +131% in 2010, which is a key indicator of operating efficiencies showing that revenue growth
rate far exceeds the rate of growth in expenses. Even in more recent months, operating leverage is consistently higher than prior periods, indicating
continued strong revenue-expense trajectory going forward.
Operating leverage
(AED Mln)
Revenue
Expense %
112 % higher revenue
4% lower expenses
=116 % positive JAWS
Operating leverage
(AED Mln)
Revenue
Expense %
Qtr4 2010 vs. Qtr4 2009
40
35
30
25
20
15
10
5
0
36.5
33.7 35.1
30
142% higher revenue
3% lower expenses
=145% positive JAWS
Dec 2010 vs. Dec 2009
12.0
12
12.0 11.7
10
6
25
41% lower cost of credit %
2010 vs. 2009
4.9
25.6
20
Qtr4 2009
Qtr4 2010
0
Dec 2009
Dec 2010
Qtr4 2010 vs. Qtr4 2009
15.2
10
5
5
2009
2010
0
41% lower cost of credit %
Dec 2010 vs. Dec 2009
25.0
20
14.6
15
10
Cost of credit
(%)
25
28.0
20
15
0
48% lower cost of credit %
25
4
2
Cost of credit
(%)
30
Total cost of credit in 2010 dropped to
15.2% from 25.6% in 2009
(41% improvement)
8
15.9
Cost of credit
(%)
14.7
15
10
5
Qtr4 2009
Qtr4 2010
Trends in recent months indicate further
improvement, with Qtr4 2010 total cost of
credit dropping further to 14.6% from 28.0%
in Qtr4 2009 (48% improvement)
0
Dec 2009
Dec 2010
Similar improvement in cost of credit in
December 2010 dropping to 14.7% from
25.0% in December 2009
(41% improvement)
Consistently improving portfolio credit quality is driven by the concerted focus on growing secured assets, targeted cross-sell and deepening to grow
tested and seasoned receivables, which is the foundation of dunia’s “test, grow and accelerate” approach.
2010 Core Expenses exclude AED 12.8 Mln of one-time impairment of Intangible Assets
Strong operating leverage of 116% in Qtr4
2010 compared to Qtr4 2009 (112% revenue
growth and 4% lower expenses)
Stronger operating leverage of 145% in
December 2010 compared to December 2009
(142% revenue growth and 3% lower
expenses)
Consistent improvement in portfolio credit quality
Cost of Credit
Credit quality has substantially improved compared to 2009, with dunia’s cost of credit on loans and advances to customers reducing by 41% to
15.2% in 2010 (compared to 25.6% in 2009). Cost of credit in recent months has reduced even further, with Qtr4 2010 at 14.6%, and December
2010 at 14.7%.
Cost of credit comprises of Specific Provisions (SP) and General Provisions (GP). Specific Provisions are based on dunia’s conservative policy of
taking 100% provision on customer loans and advances that are more than 120 days past due. General Provisions are driven by dunia’s policy on
recognizing impairment provisions based on delinquency flow rates, in-line with IFRS standards.
Secured assets
A healthy mix of secured and unsecured assets is essential for a diversified and balanced lending exposure, which is an important driver of
predictable, profitable and sustainable financial performance. Therefore, increasing secured lending has been a key strategic focus area for dunia
since inception.
Secured assets represent 24% of total loan value sourced and 15% of total customer receivables in 2010. The focus on secured assets has resulted in
a more diversified and better quality receivables mix as is evident in the substantial improvement in credit quality in 2010.
Secured/Total loan value sourced
(%)
2010 vs. 2009
24.4
25
9
7. 4
6
5
0
14.5
15
15
8.9
97
% growth
Dec 2010 vs. Dec 2009
12
3
2009
2010
Secured assets represent 24% of total loan
value sourced in 2010, compared to only 9%
in 2009 (174% growth)
103
Secured/Total loans & advances
(%)
20
10
Given the uncertain macro-economic environment prevailing at the time of dunia’s launch in 2008, the management followed a policy of timely
recognition of impairment provisions (GP) to build appropriate absorption capacity to insulate the portfolio from inherent stresses. As a result of this
conservative approach, 55% of dunia’s total cost of credit in 2009 comprised of General Provisions.
174 % growth
0
Dec 2009
Dec 2010
In balance sheet terms, secured assets
represent 15% of total customer loans and
advances as of December 2010, compared to
only 7% in December 2009 (97% growth)
104
Proactive liquidity risk management
Risk Adjusted Yields (RAY)
Risk adjusted yields are a key indicator of the portfolio’s credit quality and profitability dynamics. dunia’s risk adjusted yields have increased further
to a healthy 24.4% p.a. in 2010, compared to 22.2% in 2009.
The higher risk adjusted yields delivered are a result of improving net credit margins driven by higher gross revenue yields on customer loans and
advances, stabilizing delinquencies and declining loss rates.
Risk adjusted yield
(%)
10 % higher RAY
Risk adjusted yield
(%)
2010 vs. 2009
25
22.2
24.5
20
15
15
10
10
5
5
0
2009
0
2010
Risk adjusted yields have improved to 24.5%
in 2010, compared to 22.2% in 2009
(10% improvement over prior year)
Despite being a relatively new non-bank market player, dunia is a depository institution with a diversified and granular deposit base. In addition to
sourcing corporate deposits, dunia also raises deposits through the issuance of Labor Guarantees for corporate customers (100% cash collateralized).
30
% higher RAY
Qtr4 2010 vs. Qtr4 2009
Deposits
(AED Mln)
Average ticket size
(AED Mln)
130
% deposits growth
Qtr4 2010 vs. Qtr4 2009
24.8
25
20
Recent global events have shown that liquidity and availability of funding is a key priority for any financial institution. dunia has focused on being a
depository institution from inception, and has proactively managed its liquidity requirements by focusing on developing multiple sources of longterm, stable funding to supplement its strong paid-up capital base of AED 586 million.
Average tenor
(Months)
increasing granularity
through lower deposit ticket size
Average interest rate
(% p.a.)
tenured deposits
stable cost of funds
19.1
Qtr4 2009
Qtr4 2010
Risk adjusted yields have further improved in
recent months, with Qtr4 2010 at 24.8%
compared to 19.1% in Qtr4 2009
(30% improvement over prior year)
NPL coverage and impairment reserves
As a result of its conservative and IFRS compliant policy on recognition of impairment provisions (General Provision), dunia’s NPL cover as of
December 2010 is at 335%.
80
70
60
50
40
30
20
10
0
74.1
58.2
32.2
21.4
Qtr2 ’09 Qtr4 ‘09 Qtr2 ’10 Qtr4 ’10
Customer deposits have grown
to AED 74 Mln by December 2010
(130% increase over December
2009)
2.0
20
1.7
1.5
1.0
0.5
0.0
15
1. 2
1.0
18
15
15
10
16
5.1
10
0.5
Qtr1 ‘10 Qtr2 ‘10 Qtr3 ‘10 Qtr4 ‘10
In-line with the strategy to raise
granular deposits, average ticket
size of customer deposits has
dropped to a healthy level of
AED 0.5 Mln by December 2010
5.1
5.1
5.2
5
0
Qtr1 ‘10 Qtr2 ’10 Qtr3 ’10 Qtr4 ‘10
On the other hand, the focus on
sourcing tenured, stable deposits
has resulted in the average tenor
increasing to 18 months as of
December 2010
0
Qtr1 ‘10 Qtr2 ‘10 Qtr3 ’10 Qtr4 ‘10
Similarly, the average cost of
deposits remains stable at a low
5.2% as of December 2010,
helping lower the overall cost of
funding for the business
Moreover, dunia’s Impairment Reserves are at 4.8% of total customer loans and advances as of December 2010 (which is well above the minimum
requirement of 1.25% stipulated by the UAE Central Bank).
The strong focus on customer deposits has gradually ensured that dunia is increasingly funded by customer deposits, with diminishing reliance on
professional funding sources. 21% of total customer receivables are funded through customer deposits as of December 2010 (compared to 19% in
2009). These deposit customers offer additional cross sell opportunities.
NPL Cover
In addition to raising customer deposits, dunia has successfully arranged credit facilities from leading banks, which provide additional liquidity
buffers required to fund business growth.
3.35x NPL cover
Impairment reserves/Loans & advances
(%)
4.8 % impairment reserve
as of Dec 2010
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
3.51
Dec 2009
3.35
Dec 2010
Continued healthy NPL cover of 335% in
2010, remaining stable compared to 2009
as of Dec 2010
8
7
6
5
4
3
2
1
0
7.6
4.8
Dec 2009
Dec 2010
Ratio of impairment reserves to total loans
and advances has reduced from 7.6% in 2009
to 4.8% in 2010, reflecting the significant
improvement in portfolio credit quality and
delinquencies in 2010
A 335% NPL cover provides adequate loss absorption capacity and further insulates the portfolio from any possible stress situation through timely
recognition of inherent risks, thereby safeguarding the balance sheet from future shocks.
105
106
dunia has successfully achieved operating income break-even in
December 2010
Operating Margin
Return on Equity (ROE)
dunia’s operating margin (revenue less operating expenses) has improved by 50% in 2010 on a full year basis compared to 2009, and Qtr4 2010
margin has improved by 82% compared to Qtr4 2009.
As a result of the robust focus and rigor in managing the business with discipline along all drivers of the top-line, bottom-line and key performance
ratios, dunia has predictably and sustainably improved Return on Equity in 2010 by 35%, on a full year basis.
dunia has successfully achieved operating income break-even in December 2010, and is well on its way to achieving full monthly net income breakeven. The operating profit in December 2010 was AED 0.3 million in its maiden month of achieving this milestone.
Operating Margin
(AED Mln)
50 % higher margin
2010 vs. 2009
Operating Margin
(AED Mln)
0
0
-20
-5
-40
-10
(45.7)
-60
-80
-100
2010
Full year operating loss in 2010 has reduced
to AED 45.7 Mln (50% improvement
compared to 2009)
Qtr4 2010 vs. Qtr4 2009
(1.4)
(7.0)
-15
-20
(91.0)
2009
93 % higher margin
-25
(20.6)
(19.2)
(18.1)
Qtr4 ‘09 Qtr1 ‘10 Qtr2 ‘10 Qtr3 ‘10 Qtr4 ‘10
However, recent months indicate an even
stronger improvement with Qtr4 2010
operating loss reducing to AED 1.4 Mln
(93% better compared to Qtr4 2009)
Operating Margin
(AED Mln)
1
0
-1
-2
-3
-4
-5
-6
-7
-8
104
% higher margin
Dec 2010 vs. Dec 2009
0.3
Return on Equity
(% p.a.)
35 % ROE improvement
2010 vs. 2009
Qtr4 2010 vs. Qtr4 2009
Return on Equity
(% p.a.)
0
0
-10
-10
-10
-20
-20
-30
-50
(28.2)
-30
-40
(43.4)
2009
2010
Full year 2010 Return on Equity is 35% better
compared to 2009
Dec 2010
54 % ROE improvement
0
-40
(7.1)
Dec 2009
Return on Equity
(% p.a.)
(20.3)
(28.2)
(28.9)
(34.3)
(44.3)
-50
Qtr4 ‘09 Qtr1 ‘10 Qtr2 ‘10 Qtr3 ‘10 Qtr4 ‘10
However, recent months indicate an even
stronger improvement with Qtr4 2010 Return
on Equity 54% better compared to Qtr 4 2009
-20
53 % ROE improvement
Dec 2010 vs. Dec 2009
(18.4)
-30
-40
-50
(39.5)
Dec 2009
Dec 2010
Similarly, the trend in December 2010 has
improved even further, with Return on Equity
53% better compared to December 2009
Similarly, the trend in December 2010 has
improved even further, with an operating
profit of AED 0.3 Mln bracket 104% better
compared to December 2009)
Net Income
As a result of strong revenue growth, reducing operating expenses and improving credit quality, dunia’s net loss has reduced to AED 88 million in
2010, compared to a net loss of AED 116 million in 2009.
While the bottom-line has improved 25% on full year basis, the quarter-on-quarter losses are reducing even faster and the trend towards planned
break-even by mid-2011 is progressing well.
Net Income
(AED Mln)
Net Income
25 % NI improvement (AED Mln)
2010 vs. 2009
55 % NI improvement
Qtr4 2010 vs. Qtr4 2009
Net Income
(AED Mln)
0
0
0
-20
-5
-2
-10
-40
-60
(87.8)
-100
(116.5)
2009
2010
Full year net loss in 2010 has reduced to
AED 87.8 Mln (25% improvement compared
to 2009)
107
(14.2)
-20
-80
-120
-4
-15
-25
-30
-35
(21.1)
(25.0)
(27.5)
(32.0)
Qtr4 ‘09 Qtr1 ‘10 Qtr2 ‘10 Qtr3 ‘10 Qtr4 ‘10
However, recent months indicate an even
stronger improvement with Qtr4 2010 net
loss reducing to AED 14.2 Mln (55% better
compared to Qtr4 2009)
61
% NI improvement
Dec 2010 vs. Dec 2009
(4.2)
-6
-8
-10
-12
(10.8)
Dec 2009
Dec 2010
Similarly, the trend in December 2010 has
improved even further, with net loss reducing
to AED 4.2 Mln (61% better compared to
December 2009)
108
Excellence through drive
109
110
Khaled Abdulla Juma Al Qubaisi
Khaled Al Qubaisi is not only driven by a passion to succeed in all
that he endeavours but is a passionate driver himself and is the first
professional GT sports car racer from Abu Dhabi
Chairman of the National Health Insurance
Company ‘DAMAN’, Managing Director of the
National Central Cooling Company PJSC (Tabreed),
Senior Advisor for Acquisitions at Mubadala,
Managing Director of Tabreed, Director of Dunia
Finance LLC, and Board Member of International
Fish Farming Company ‘ASMAK’ and Manazel Real
Estate Company. The stated above is just the list
of Khaled’s capacities on the corporate front. He
is equally or more famous as a sports personality.
Khaled’s more recent racing career has been
embellished with 9 Podium finishes, 2 Pole
positions, 1 Victory and was ranked third in the
UAE GT Championship - GTA 2009-2010. He has
achieved all of the above despite launching his
racing career only in 2009. He has participated
in 44 races to date and has already set very high
standards for all the others to follow.
Khaled’s passion, vision and keen interest in
motorsports have led to the launch of ‘Tolimit
Arabia’ to enhance sports management,
marketing and sponsorship services as a team
with other major sports business patrons. The
Tolimit Team comprises of many famous names
with established professional backgrounds
lending their expertise to the strength of the
whole label. Team Tolimit is set to enrich the
Nation’s sports industry and is a part of Khaled’s
vision to establish and grow national interests in
the sport with ample training and development of
talents.
111
Khaled studied Finance and Operations
management at Boston University and did his
Master of Science from the George Washington
University. He did his CFA and has been a member
of the Chartered Financial Analyst Institute since
2003. Khaled began his career as an Analyst with
an Abu Dhabi Investment company. He was Head
of Corporate Finance and Business Development
at National Bank of Abu Dhabi. He was then the
Chief Investment Officer at International Capital
until he joined Mubadala where he is currently
Executive Director, Human Resources.
Khaled’s passion for driving started very early in
life. He remembers his attempts at driving sitting
on the lap of his parents barely able to reach the
pedals and just managing the steering wheel, to
when he was actually driving at the tender age of
8 all by himself in the desert.
Khaled’s conviction to be the best at what he
does is quite evident from the goals that he sets
for himself, and in his own words, “I enjoy racing,
but if I didn’t have a chance in being competitive
and challenging for a title, then I would not want
to continue racing.”
Khaled believes that when one is innately
skilled, then experience and proper training is
essential to be competitive... thereafter “failure
is not an option” as he says. He would like to be
remembered as a person who inspires others to
follow their ambitions!
112
T H E
S T O R Y
A H E A D
Driving excellence
113
114
dunia’s growth from the cradle to
sustainable growth in less than
3 years is a testament to the validity
of its business model and the solid
foundations it was built on.
We are poised to achieve great things in the
year ahead. Our performance has consistently
and substantially improved year on year and
we are well on the way to our goal to strive
towards becoming one of the substantive
players in the market. While we aim to work
towards ensuring that we deliver in the year
2011, our first year of profitability, we continue
in all humility to remain focused on always
delivering on our core objectives of serving
our customers, adding value to our employees,
changing lives, building futures, ensuring
smiles and developing human potential in even
more ways, just as we have attempted to do
consistently since inception in 2008.
dunia will remain committed to its core values
of customer commitment, valuing its people,
serving the community and will conduct its
business with all stakeholders with integrity
and ethics.
"Vision enables you to glimpse into the future, to sense its
hope and power, because you yourself are the means for that
future's creation."
Sara Paddison
115
116
A U D I T E D
F I N A N C I A L S
Trends of success
117
118
Directors’ report
Dear Shareholders,
The directors present their report to the shareholders together with
the audited financial statements of Dunia Finance LLC (“the company”)
for the year ended 31 December 2010 and the financial position of the
company as at 31 December 2010.
Background
The company, also known as “dunia”, was formally established on
7 July 2008 as a limited liability company registered in UAE, having
its registered office in Abu Dhabi. The company is a finance company
that was formed as a strategic partnership between Fullerton Financial
Holdings Pte Ltd - a wholly owned subsidiary of Temasek Holdings
Pte Ltd in Singapore; Mubadala Development Company PJSC - a
business development and investment company wholly owned by
the Government of Abu Dhabi; Al Waha Capital PJSC - a diversified
investments holding company and A.A.Al Moosa Enterprises LLC - a
leading and prominent real estate group in UAE.
Principal Business
dunia aims to focus nationally on the key mass affluent and mass
market segments in the consumer financial services side, and on the
small business customers on the business finance side. dunia aims
through a nationwide presence in the UAE to provide a full-function
product range, that spans across the transaction, borrowing and deposit
needs of our customers using a unique customer centric approach. To
support the national objective of attaining financial inclusion, dunia
has invested in state of the art infrastructure and capabilities to process
payroll through the WPS system by becoming an accredited WPS agent
and issuing payroll to lower-income mass customers through a hightechnology card product that allows for global access to funds through
ATMs worldwide, and at retail point-of-sale outlets.
Product Range
• Unsecured Loans - Cash loans, Education loans, Marriage
loans etc…
• Secured Loans - New car loans, Used car loans, Loans against
existing car, Commercial vehicle loans
• Credit Cards
• WPS payroll processing
• Guarantees - Labour Guarantees to Ministry of Labour,
Guarantees for business needs
• Corporate Deposits – Fixed Rates, Floating Rates
Directors
The directors of the company in office at the date of this report are as
follows:
1. Mr. Salem Rashid Al Noaimi, Chairman
2. Mr. Rajeev Kakar, Executive Director and Chief Executive Officer
3. Mr. Francis Rozario, Director
4. Mr. Khaled Abdulla Juma Al Qubaisi, Director
5. Dr. Ahmed Khalil Al Mutawa, Independent Director
119
Share Capital and Share Premium
women into senior management roles.
The authorised, issued and paid up share capital of the company is
550,000 shares (2009: 550,000 shares) of AED 1,000 each
(2009: AED 1,000 each), amounting to AED 550,000,000
(2009: AED 550,000,000). Of these, 330,000 shares were issued at a
premium of AED 110 each, amounting to AED 36,300,000
(2009: AED 36,300,000). The company’s capital adequacy ratio was
57.7% (2009: 77.0%), significantly higher than the minimum 15%
stipulated by the Central Bank of the UAE.
Training & Development: The dunia Training Academy has been
designed to train and develop individuals on the core skills as well as
development skills required for each of their unique roles. We have a
strong focus on training and development of our employees.
Business Evolution
In a changing world with ever-changing norms and more stringent
demands being made of businesses, dunia is committed to being at
the forefront of evolution with a willingness to adapt to change.
We are driven by the focus, energy, passion of a highly talented and
seasoned team which delivers business predictably through execution
excellence, creativity and the highest standards of integrity.
With the macro challenges faced at the beginning of the year, both
globally and regionally, we focused strongly on differentiating and
growing by staying close to basics. We focused intensely on customer
service and we remained committed to our value proposition. We
leveraged off existing capabilities and infrastructure to ensure a
strategic cost management focus which allowed us to “do more with
less”, while growing predictably and sustainably with a strong focus
on delivering a consistent positive operating leverage through the
year. We reinforced our commitment to all stakeholders specially
our customers and our employees, to build sustainable and lasting
relationships. Our initial investment in customer focused technology
and processes, and through a team of seasoned and talented people,
helped us make this happen on a reliable and consistent basis through
the year, despite the continued strong volatility on a macro level.
Business Performance
People
Team: The company has a total of 708 highly driven people on board as
of 31 December 2010.
Diversity: dunia is led by a senior management team comprising of
talented and seasoned business leaders with a wealth of global
experience exhibiting great diversity. At dunia, diversity is not a
program, but a management theme and a way of life that promotes:
• Equal opportunity to all
• Acceptance of everyone despite their differences
• Inclusive behaviour and helps people overcome
exclusive behaviour
• Strong results orientation
Developing UAE Talent: ‘Kawader dunia’ provides a wonderful
opportunity for young Emiratis to learn and grow professionally. We are
committed to developing UAE talent.
Contribution to role of women in corporate world: dunia has been
recognized by the press as being a corporation that focuses on
developing women at various career stages and also ensures to develop
Campus engagements: dunia continues to grow its talent pool by
engaging with and recruiting from the best universities around the world.
Franchise
Dunia has a strong full-function distribution network
• 4 branches and 15 service centers at well-located and convenient
locations in Abu Dhabi, Al Ain, Dubai and Sharjah
• a fully automated manned and IVR assisted 24x7 Call Center
• round-the-clock access through our customer online access
capability on www.dunia.ae
• A team of Relation Managers who provide greater convenience to
customers through personalized service at their homes and offices
Dunia has also built a STRONG & WELL RECOGNISED UAE BRAND
• dunia ranked 10th in Service A list of customer – focused
organizations across the UAE by Gulf News
• We remain committed to Corporate Social responsibility through
our well-recognized “Dunia Cares” program which has continued
along our objective to contribute to community by leveraging off
our employee and customer base to address the UAE society’s most
pressing challenges of inclusive growth including health, education,
environment and social responsibility
dunia Cares Pillars
• Health: National Blood donation drives organized at our
branches
• Education: Teaching English to those who are less privileged
and do not have access to formal education
• Environment: Recycle, Reuse, and Reduce campaign to spread
awareness of the dangers to the environment and how
everyone can help
• Social Welfare: Drives to collect unused items from staff,
customers and the community which are handed out to
labour camps.
Financials
All this resulted in strong positive operating results for 2010, our
second full year of operations, and dunia closed the 2010 Financial year
at a net loss of AED 88 million, which is AED 28 million better than
prior year 2009 actual numbers.
dunia has shown a strong 2010 performance versus prior period 2009
actual numbers on all Profit and loss drivers & metrics. On almost all
metrics, dunia’s most recent quarter trends shows an even higher
trajectory, showing the continued stronger recent trends.
Risk Management & Corporate Governance
During 2010, we were provided assurance on dunia’s strong Governance,
Risk Management and Control environment by the positive results in the
regulatory and strategic reviews and statutory audits.
At dunia, we believe that to serve the long term interests of our customers,
a robust risk management architecture is critical. This makes our
business model effective and ensures predictability with scale. Thus,
risk management is an integral part of our business strategy, striking a
balance between risk control and long term growth. We have a welldefined and tiered risk control framework that ensures an in-depth
and independent process of policy setting, policy implementation, control,
tracking, issue identification, severity analysis, and feedback process.
With a risk management organization that is independent of the
revenue generating function and a documented risk management
framework, we ensure a principles-based approach to management of
risks with assurance mechanisms for various stakeholders.
Strategic Cost Management
At dunia, we believe that strategic cost management together with
steady revenue line expansion within a defined risk framework, is
critical to business success and long term sustainability. Cost is viewed
in the light of the value it provides. Cost management goes hand in
hand with delivering value to the customer, expanding the revenue
streams and increasing productivity levels.
Overall
dunia has delivered strongly in a challenging year using creativity and
innovation in the pursuit of its goal of providing value and service to its
clients, while displaying the discipline and rigour of excellent execution
to ensure a predictable performance in its quest for longer term
profitability and sustainability.
We met the changing framework of the world head-on and devised
strategies that allow us to grow and become increasingly the preferred
choice for clients.
Auditors
The financial statements have been audited by PricewaterhouseCoopers
who retire and, being eligible, offer themselves for reappointment.
Acknowledgement
The directors wish to specially recognise the cooperation extended by
every member of the dunia family and thank them for their ongoing
contribution. The directors are also thankful for the wholehearted
support received from the Central Bank of the UAE, various Ministries of
UAE Government, the company’s bankers and the company’s valued
customers.
The directors look forward to your continued support.
On behalf of the Board,
Rajeev Kakar
Executive Director and Chief Executive Officer
120
Independent auditor’s report to the
shareholders of Dunia Finance LLC
Report on the financial statements
We have audited the accompanying financial statements of Dunia
Finance LLC (“the company”) which comprise the statement of
financial position as of 31 December 2010 and the statement of
comprehensive income, changes in equity and cash flows for the year
then ended and a summary of significant accounting policies and other
explanatory notes.
Management’s responsibility for the financial
statements
Management is responsible for the preparation and fair presentation of
these financial statements in accordance with International Financial
Reporting Standards and for such internal control as management
determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to
fraud or error.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements
based on our audit. We conducted our audit in accordance with
International Standards on Auditing. Those Standards require that we
comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance whether the financial statements are free
of material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor’s judgement, including
the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
entity’s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
Report on other legal and regulatory requirements
As required by the UAE Federal Law No (8) of 1984, as amended, we
report that:
Statement of financial position
As at 31 December
Note
(ii) the financial statements comply, in all material respects, with the
applicable provisions of the UAE Federal Law No. (8) of 1984, as
amended, and the Memorandum of Association of the company;
5
63,144
211,325
Loans and advances
6
356,651
173,110
Property and equipment
7
15,876
21,609
Intangible assets
8
10,987
28,402
Other assets
9
9,288
13,890
455,946
448,336
Total assets (iii) the company has maintained proper books of account and the
financial statements are in agreement therewith;
Liabilities And Equity
(iv)the financial information included in the Director’s report is
consistent with the books of accounts of the company; and
Due to related parties
(v) nothing has come to our attention, which causes us to believe
that the company has breached any of the applicable provisions
of the UAE Federal Law No (8) of 1984, as amended, or of its
Memorandum of Association which would materially affect its
activities or its financial position at 31 December 2010.
Further, as required by the UAE Union Law No (10) of 1980, as
amended, we report that we have obtained all the information and
explanations we considered necessary for the purpose of our audit.
PricewaterhouseCoopers
7th March 2011
Paul Suddaby
Registered Auditor Number 309
Dubai, United Arab Emirates
2009
AED’000
Assets
Cash and deposits with banks
(i) we have obtained all the information we considered necessary for
the purpose of our audit;
2010
AED’000
Customer deposits
10
74,073
32,239
11(b)
1,184
1,368
Borrowings
12
54,968
-
Provision for employees’ end of service benefits
13
3,955
2,847
Other liabilities
14
Total liabilities
54,789
60,753
188,969
97,207
550,000
550,000
Equity
Share capital
15
Share premium
15
Accumulated losses
35,544
31,872
(318,567)
(230,743)
Total equity
266,977
351,129
Total liabilities and equity
455,946
448,336
These financial statements were approved by the Board of Directors on 27 February 2011 and were signed on its behalf by:
Salem Rashid Al Noaimi
Chairman
Rajeev Kakar
Executive Director and Chief Executive Officer
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the accompanying financial statements present fairly,
in all material respects, the financial position of the company as of 31
December 2010 and its financial performance and its cash flows for the
year then ended in accordance with International Financial Reporting
Standards.
W Hunt, AH Nasser, P Suddaby and JE Fakhoury are registered as practicing auditors with the UAE Ministry of Economy
121
The notes on pages 126 to 146 form an integral part of these financial statements.
122
Statement of comprehensive income
Year ended 31 December
Note
Statement of changes in equity
2010
2009
AED’000
AED’000
Issued share
capital
Share
premium
Accumulated
losses
Total
AED’000
AED’000
AED’000
AED’000
At 1 January 2009
275,000
13,722
(114,261)
174,461
Issue of share capital
275,000
18,150
-
-
(116,482)
(116,482)
At 31 December 2009
550,000
31,872
(230,743)
351,129
At 1 January 2010
550,000
31,872
(230,743)
351,129
-
3,672
-
-
(87,824)
550,000
35,544
(318,567)
Note
Interest income
18
86,282
39,131
Interest expense
18
(3,386)
(1,227)
Net interest income
82,896
Fees and commission income, net
37,904
23,134
7,176
18
554
106,048
45,634
19
(42,174)
(25,482)
General and administrative expenses
20
(140,057)
(123,040)
Amortisation and depreciation
7,8
(11,641)
(13,594)
(87,824)
(116,482)
Other operating income
Operating income
Impairment charge, net
Net loss for the year
Other comprehensive income
Total comprehensive result for the year
The notes on pages 126 to 146 form an integral part of these financial statements.
123
(87,824)
-
293,150
Total comprehensive
result for the year
Provision for share issue
expenses written back
15
-
3,672
Total comprehensive result
for the year
At 31 December 2010
(87,824)
266,977
(116,482)
The notes on pages 126 to 146 form an integral part of these financial statements.
124
Statement of cash flows
Notes to the financial statements for
the year ended 31 December 2010
Year ended 31 December
Note
2010
2009
AED'000
AED’000
Operating activities
Net loss for the year
(87,824)
(116,482)
Adjustments:
Depreciation
7
6,546
5,678
Amortisation of intangible assets
8
5,095
7,916
Employees’ end of service benefits
13
1,569
1,732
Impairment charge
19
43,201
25,503
Write off of intangible assets, property and
equipment
7,8
Operating cash flow
12,856
(18,557)
(75,653)
Changes in operating assets and liabilities:
Employees’ end of service benefits paid
13
Deposits with maturities over 3 months
5
56,144
(31,922)
Loans and advances
6
(226,717)
(178,121)
Other assets
9
4,577
Customer deposits
10
41,834
23,568
Other liabilities
14
(2,292)
15,775
Net cash used in operating activities
(461)
(145,472)
(248)
(525)
(247,126)
Investing activities
Purchase of property and equipment
7
(1,338)
(3,990)
Purchase of intangible assets
8
(11)
(2,868)
(1,349)
(6,858)
Financing activities
11(b)
(184)
(114,900)
Borrowings
12
54,968
-
Issue of share capital
15
-
293,150
54,784
178,250
Net cash generated from financing activities
Net decrease in cash and cash equivalents
(92,037)
(75,734)
Cash and cash equivalents, beginning of the year
119,253
194,987
27,216
119,253
Cash and cash equivalents, end of the year
Dunia Finance LLC (“the company”) was formally established as a
limited liability company on 7 July 2008 under the UAE Companies Law.
The company was licensed by the Central Bank of the UAE on
11 September 2008 to operate as a finance company.
(a) Amendments to published standards that are effective for the
company’s accounting periods beginning 1 January 2010
The following applicable new amendments to existing standards have
been published and are effective for company’s accounting periods
beginning 1 January 2010:
The company’s principal activity is providing customer centric financial
solutions to its target customer segments.
-
-
The company’s registered address is Al Fardan Building, Hamdan Street,
PO Box 44005, Abu Dhabi, United Arab Emirates.
The shareholders of the company and their respective shareholding are
as follows:
Management has assessed the impact of the above amendments to
published standards on the company’s financial statements and has
concluded that the above amendments are either not relevant to the
company or do not have any significant impact on its financial position
or the results of its operations.
Bugis Investments Mauritius Pte Ltd
(a wholly owned subsidiary of Fullerton
Financial Holdings Pte Ltd) 40%
(b) Standards, amendments and interpretations to published standards
which are not yet mandatorily effective and have not been early
adopted by the company
Alpha Investment Company LLC
(a subsidiary of Mubadala Development
Company PJSC)
31%
The following applicable new standards have been issued but are
effective for the company’s accounting periods beginning on or after
1 January 2010 and have not been early adopted by the company:
Al Waha Capital - PJSC
25%
• IFRS 9, ‘Financial instruments part 1: Classification and
measurement’ effective for annual periods beginning on or after
1 January 2013. IFRS 9 was issued in November 2009 and replaces
those parts of IAS 39 relating to the classification and measurement
of financial assets. Key features are as follows:
A A Al Moosa Enterprises LLC
4%
2 Summary of significant accounting policies
The significant accounting policies applied in the preparation of these
financial statements are set out below. These policies have been
consistently applied to all the periods presented, unless otherwise
stated.
IAS 1 (amendment), ‘Presentation of financial statements’
IAS 36 (amendment), ‘Impairment of assets’
-
Financial assets are required to be classified into two
measurement categories: those to be measured subsequently at
fair value, and those to be measured subsequently at amortised
cost. The decision is to be made
at initial recognition. The classification depends on the
entity’s business model for managing its financial instruments
and the contractual cash flow characteristics of the instrument.
-
An instrument is subsequently measured at amortised cost only
if it is a debt instrument and both the objective of the entity’s
business model is to hold the asset to collect the contractual
cash flows, and the asset’s contractual cash flows represent
only payments of principal and interest (that is, it has only
‘basic loan features’). All other debt instruments are to be
measured at fair value through profit or loss.
-
All equity instruments are to be measured subsequently at
fair value. Equity instruments that are held for trading will
be measured at fair value through profit or loss. For all other
equity investments, an irrevocable election can be made at
initial recognition, to recognise unrealised and realised fair
value gains and losses through other comprehensive income
rather than profit or loss. There is to be no recycling of fair
value gains and losses to profit or loss. This election may be
2.1 Basis of preparation
Net cash used in investing activities
Due to related parties
1 Legal status and principal activity
5
The company’s financial statements have been prepared in accordance
with and comply with International Financial Reporting Standards
(“IFRS”). The financial statements are prepared under the historical cost
convention.
The preparation of financial statements in conformity with IFRS
requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the
company’s accounting policies. Changes in assumptions may have a
significant impact on the financial statements in the period the
assumptions changed. Management believes that the underlying
assumptions are appropriate and that the company’s financial
statements therefore present the financial position and results fairly.
The areas involving a higher degree of judgement or complexity, or
areas where assumptions and estimates are significant to the financial
statements are disclosed in Note 4.
The notes on pages 126 to 146 form an integral part of these financial statements.
125
126
made on an instrument-by-instrument basis. Dividends are to be
presented in profit or loss, as long as they represent a return on
investment.
While adoption of IFRS 9 is mandatory from 1 January 2013, earlier
adoption is permitted. The company is considering the implications of
the standard, the impact on the company and the timing of its adoption
by the company.
• IAS 24 (revised), ‘Related party disclosures’, issued in November
2009. It supersedes IAS 24, ‘Related party disclosures’, issued in
2003. IAS 24 (revised) is mandatory for periods beginning on or
after 1 January 2011. Earlier application, in whole or in part, is
permitted.
The revised standard clarifies and simplifies the definition of a related
party and removes the requirement for government-related entities
to disclose details of all transactions with the government and other
government-related entities. Management has assessed the impact
of the above standard on the company’s financial statements and has
concluded that they are either not relevant to the company or the
effect on the company’s financial statements is not material.
2.2 Foreign currency translation
a. Functional and presentation currency
The financial statements are presented in United Arab Emirates
Dirhams (AED), which is the company’s functional and presentation
currency.
b. Translation and balances
Foreign currency transactions are translated into the functional
currency using exchange rates prevailing at the date of the
transactions. Foreign exchange gains and losses resulting from
the settlement of such transactions and from the translation
at year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the statement
of comprehensive income.
2.3 Intangible assets
Software acquired by the company is stated at cost less accumulated
amortisation and impairment. Expenditure on internally developed
software is recognised as an asset when the company is able to
demonstrate its intention and ability to complete the development
and use the software in the manner that will generate future economic
benefits and can reliably measure the costs to complete development.
The capitalised costs of internally developed software include all costs
directly attributable to developing the software and are amortised over
its useful life. Internally developed software is stated at capitalised
costs less accumulated amortisation and impairment. Subsequent
expenditure on software assets is capitalised only when such
expenditure increases the future economic benefits embodied in the
specific asset to which it relates. All other expenditure is expensed as
incurred.
Project management and consultancy expenditure incurred as a result
of deployment of external specialist service providers are capitalised
when the company is able to demonstrate significant economic benefit
127
from the first time set up and validation of systems as well as operating
processes.
Intangible assets are amortised on a straight line basis over their
estimated useful lives of three to five years.
Assets that are subject to amortisation are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised
for the amount by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an
asset’s fair value less costs to sell and value in use. For the purposes of
assessing impairment, assets are grouped at the lowest levels for which
there are separately identifiable cash flows (cash-generating units).
Assets that suffered impairment are reviewed for possible reversal of
the impairment at each reporting date. Asset is derecognised / written
off when no future economic benefits are expected from its use or
disposal and loss on derecognition of asset is recognised in the income
statement for the period in which derecognition occurs. 2.4 Property and equipment
Property and equipment are stated at historical cost less accumulated
depreciation. The cost of property and equipment includes expenditure
directly attributable to the acquisition or construction of the asset as
well as expenditure incurred on bringing the asset to the working
condition and location for its intended use. Subsequent costs are
included in the asset’s carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the company and the
cost of the item can be measured reliably. All other repairs and
maintenance are charged to the statement of comprehensive income
during the financial period in which these are incurred.
Depreciation is recognised in the statement of comprehensive income
on a straight-line basis, at rates calculated to reduce the cost of assets
to their estimated residual value over their expected useful lives, as
follows:
Years
Office and other equipment
3-5
Leasehold improvements Up to 8
Motor vehicles
3-5
The assets’ residual values and useful lives are reviewed and adjusted, if
appropriate, at each date of statement of financial position.
Gains and losses on disposal of property and equipment are determined
by comparing the sales proceeds to the carrying value of the asset
disposed and are taken into account in determining operating income /
(loss).
2.5 Loans and advances
Loans and advances are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market.
Loans and advances are initially recognised at fair value, which is the
cash consideration to originate the loan and advance including any
transaction costs, and measured subsequently at amortised cost using
the effective interest rate method. Loans and advances are reported in
the statement of financial position as loans and advances to customers.
Interest on loans is included in the statement of comprehensive
income and is reported as interest income. In the case of impairment,
the impairment loss is reported as a deduction from the carrying
value of the loan and advances, and recognised in the statement of
comprehensive income as impairment charge, net.
The company assesses at the end of each reporting period whether
there is objective evidence that loans and advances are impaired.
Loans and advances are considered impaired and impairment losses are
incurred only if there is objective evidence of impairment as a result
of one or more events that occurred after the initial recognition of
the asset (a ‘loss event’) and that loss event (or events) has an impact
on the estimated future cash flows of the financial asset or group of
financial assets that can be reliably estimated.
The criteria that the company uses to determine that there is objective
evidence of an impairment loss include:
• Delinquency in contractual payments of principal or interest;
• Demise of the debtor.
The estimated period between occurrence of a loss and its
identification is determined by management for each identified
portfolio. In general, the periods used vary between one month and
four months.
The company first assesses whether objective evidence of impairment
exists individually for loans and advances that are individually
significant and collectively for loans and advances that are not
individually significant. If the company determines that no objective
evidence of impairment exists for an individually assessed loan or
advance, it includes it in a group of loans and advances with
similar credit risk characteristics and collectively assesses them for
impairment. Loans and advances that are individually assessed for
impairment and for which an impairment loss is or continues to be
recognised are not included in a collective assessment of impairment.
For the purposes of a collective evaluation of impairment, loans and
advances are grouped on the basis of similar credit risk characteristics
(i.e. on the basis of the company’s evaluation process that considers
category type, past-due status and other relevant factors).
The impairment charge on a group of loans and advances is collectively
evaluated for impairment and estimated on the basis of historical
trends of the probability of default, timing of recoveries and amount
of loss incurred. Default rates, loss rates and expected timing of future
recoveries are regularly benchmarked against actual outcomes to
ensure they remain appropriate. Where historical data is not sufficient
to assess trends, market loss experience is substituted using a lagged
approach whereby loss rates are based on movement of accounts from
one stage of delinquency to another.
The amount of the loss is measured as the difference between the
carrying amount of the loan or advance and the present value of
estimated future cash flows (excluding future credit losses that have
not been incurred) discounted at the original effective interest rate
of the loan or advance. The carrying amount of the loan or advance
is reduced through the use of an allowance account and the amount
of the loss is recognised in the statement of comprehensive income.
If a loan or advance has a variable interest rate, the discount rate for
measuring any impairment loss is the current effective interest rate
determined under the contract.
When a loan or advance is uncollectible, it is written off against the
related impairment allowance. If no related impairment allowance
exists, it is written off to the statement of comprehensive income.
Subsequent recoveries, if any, are credited to the statement of
comprehensive income. If the amount of impairment subsequently
decreases due to an event occurring after the write down, the release
of the allowance is credited to the statement of comprehensive
income.
Loans that are either subject to individual or collective impairment
assessment and whose terms have been renegotiated are no longer
considered to be past due but are treated as new loans. In subsequent
years, the asset is considered to be past due and disclosed if
contractually delinquent and renegotiated again.
2.6 Cash and cash equivalents
Cash and cash equivalent comprise balances with less than three
months’ maturity from the date of acquisition, including cash in hand,
deposits held with original maturities of three months or less.
2.7 Other employee benefits
The amount payable to employees in respect of equity based payment
scheme, which are settled in cash, is recognised as an expense with a
corresponding increase in liabilities, over the period that the employees
become eligible to payment. The liability is re-measured at each
reporting date and at settlement date. Any changes in the fair value
of the liability are recognised as staff costs in the statement of
comprehensive income.
All other employee benefits are accrued as and when services are
rendered by the employees.
2.8 Provisions
Provisions are recognised when the company has a present legal or
constructive obligation as a result of past events and it is probable that
an outflow of resources embodying economic benefits will be required
to settle the obligation, and a reliable estimate of the obligation
amount can be made.
2.9 Revenue recognition
a. Interest income and expense
Interest income and expense is recognised in the statement of
comprehensive income using the effective interest rate method.
The effective interest rate is the rate that exactly discounts
estimated future cash receipts and payments through its expected
life (or, where appropriate, a shorter period) to the net carrying
amount of the financial asset or liability.
128
While calculating effective interest rate, cash flows are estimated
considering all contractual terms of the financial instruments,
but not future credit losses. The calculation includes all discounts
or premiums that are an integral part of the effective interest
rate. Transaction costs are incremental costs that are directly
attributable to the acquisition, issue or disposal of a financial
asset or liability. Transaction costs include fees and commissions
paid to agents (including employees acting as selling agents),
advisers, brokers and dealers. Transaction costs do not include debt
premiums or discounts, financing costs or internal administrative or
holding costs.
b. Fees and commission income
Fees and commission income that are integral to the effective
interest rate on a financial asset or liability are included in the
calculation of the effective interest rate to arrive at the amortised
cost of financial asset and financial liability.
Other fees and commission income are generally recognised
on an accrual basis when the service has been provided.
2.10 Employees’ end of service benefits
Pension contributions are made in respect of UAE national employees
to the UAE General Pension and Social Security Authority in
accordance with the UAE Federal Law No (7), 1999 for Pension and
Social Security.
Provision is made for the end of service benefits due to expatriate
employees in accordance with UAE Labour Law for their periods of
service up to the date of these financial statements. The provision
for the end of service benefits is calculated annually by independent
actuaries using the projected unit credit method.
2.11 Leases
The leases entered into by the company are operating leases. Payments
made under operating leases are charged to other operating expenses
in the statement of comprehensive income on a straight-line basis over
the period of the lease. When an operating lease is terminated before
the lease period has expired, any payment required to be made to the
lessor by way of penalty is recognised as an expense in the period in
which termination takes place.
2.12 Borrowings
Borrowings are recognised initially at fair value, net of transaction
costs incurred. Borrowings are subsequently carried at amortised cost;
any difference between the proceeds (net of transaction costs) and
the redemption value is recognised in the income statement over the
period of the borrowings using the effective interest method.
Fees paid on the establishment of loan facilities are recognised as
transaction costs of the loan to the extent that it is probable that some
or all of the facility will be drawn down. In this case, the fee is deferred
until the draw-down occurs. To the extent there is no evidence that it
is probable that some or all of the facility will be drawn down, the fee
is capitalised as a pre-payment for liquidity services and amortised over
the period of the facility to which it relates.
129
3 Financial risk management
The company’s activities expose it to a variety of financial risks and
those activities involve the analysis, evaluation, acceptance and
management of some degree of risk or combination of risks. Taking risk
is core to the financial services business and these risks are an inevitable
consequence of being in business. The company’s aim is therefore to
achieve an appropriate balance between risk and return and minimise
potential adverse effects on the company’s financial performance.
The company’s risk management policies approved by the Board
of Directors are designed to identify and analyse these risks, to set
appropriate risk limits and controls, and to monitor the risks and
adherence to limits by means of reliable and up-to-date information
systems. The company regularly reviews its risk management policies
and systems. The Chief Risk Officer oversees risk management based on
policies approved by the Board of Directors. In addition, internal audit
is responsible for the independent review of risk management and the
control environment.
The main types of risk are credit risk, liquidity risk and market risk.
Market risk includes currency risk, interest rate and price risk.
(ii) Collectively assessed loans and advances
Impairment is assessed on a collective basis to:
• Cover losses which have been incurred but have not yet
been identified on loans and advances subject to individual
assessment.
-
-
-
3.1 Credit risk
The company takes on exposure to credit risk, which is the risk that a
customer or counterparty will cause a financial loss to the company
by failing to discharge an obligation. Credit risk is an important risk
for the company’s business and management, therefore, the company
carefully manages its exposure to credit risk. Credit exposures arise
principally in lending activities and placement of deposits and balances
with the banks. There is also credit risk in off balance sheet financial
commitments such as unused credit card limits and guarantees given.
The credit risk management and control function is overseen by the
Chief Risk Officer. The business risk and compliance committee
periodically reviews and monitors all applicable risk including credit
risk limits.
Exposure to credit risk is also managed through regular analysis of the
ability of counterparties to meet interest and repayment obligations
and by changing these limits where appropriate.
3.1.1 Credit risk measurement
In measuring credit risk of loans and advances to customers, the
company adopts the following approaches:
(i) Individually assessed loan and advance
At each date of the statement of financial position, a case by case
assessment is carried out to identify whether there is objective
evidence that a loan and advance is impaired. This approach is
applied to loans and advances that are considered individually
significant. The loss includes the aggregate exposure to the
customer, and amount of expected receipts. The realisable
value of security and collaterals and the likelihood of successful
repossession will have to be considered as well as the likely costs
involved in recovery of outstanding amounts.
Individually assessed loans for which no evidence of loss has
been specifically identified on an individual basis are grouped
together according to the credit risk characteristics for the
purpose of calculating an estimated collective loss. This reflects
losses incurred at the date of financial position which will only
be individually identified in future. The measurement of the loss
will factor in the:
historical loss experience in portfolios with similar risk
characteristics;
emergence period which is the time period between
when the impairment actually occurs till there is objective
evidence that impairment exists; and
management’s judgment as to whether the prevailing
economic and credit conditions could result in the actual
loss being higher or lower than that suggested by historical
experience.
• Cover losses for homogeneous groups of loans and advances
that are not considered individually significant.
Where adequate historical information is available, statistical
methods are used to calculate losses inherent in the portfolio.
Loss rates are calculated based on historical trends of
delinquency and default to estimate the likelihood of loans and
advances going through the various stages of delinquency and
ultimately proving to be not recoverable.
Where historical loss experience is insufficient to assess
trends, the company has adopted market loss experience for
impairment, whereby loss rates are based on movement of
accounts of the peer group from one stage of delinquency to
another.
lending to selected customer segments. Further monitoring of
delinquencies across the customer loan portfolio is aimed at identifying
trends and ensuring that the credit risk related to the portfolio is proactively managed. The company has pre-defined delinquency ratio
ranges which will warrant appropriate remedial action if the ranges are
breached. Credit risk to professional counterparties is monitored by
reference to external credit ratings.
Collaterals are used as mitigating tools by the company. The principal
acceptable collaterals are:
(i) Mortgages over the vehicles for the auto loans and advances
(ii) Cash deposits for personal loans and advances to customers and
guarantees issued on behalf of customers
The maximum value of the loan and advance and the guarantees, as
well as the valuation frequencies are clearly documented in the credit
policy.
3.1.3 Impairment and provisioning
The company establishes an allowance for impairment losses that
represents its estimate of incurred losses in its loan portfolio. The
main components of this allowance are a specific loss component
that relates to individual exposures, and a collective impairment
loss allowance for losses that have been incurred but not identified,
established for groups of homogeneous loans with similar risk
characteristics. Future cash flows from a group of loans and advances
that are collectively evaluated for impairment are estimated on
the basis of historical loss experience for assets with credit risk
characteristics similar to those in the group. Where historical loss
experience is insufficient to assess trends, the company has adopted
market loss experience for impairment, whereby loss rates are based
on movement of accounts of the peer group from one stage of
delinquency to another.
When there have been changes in economic, regulatory or behavioural
conditions, historical loss experience provides less relevant information
when the most recent trends in the portfolio risk factors are not fully
reflected in statistical models. In such circumstances such risk factors
are taken into account when calculating the appropriate level of losses.
3.1.2 Risk limit control and mitigation policies
The company manages limits and controls concentration of credit risk
to individuals, employees of different industry sectors and tenors. Such
risks are monitored regularly and subject to an annual formal review.
Limits to banks are approved by the board of directors and exposures
within the limits tracked daily.
The company extensively uses analytics to monitor changes in the
credit profiles of its segmented portfolio. Analytical tools are used to
weigh the risk reward equation to aid decision making in terms of
130
3.1.4 Maximum exposure to credit risk before collateral held or other credit enhancements
The segmentation of loans and advances is used as a basis to assess the quality of the loans and effectively manage the credit risk.
The following table analyses the company’s maximum exposures to credit risk at their carrying amounts, as categorised by the market segments and
product types, all of which are in the United Arab Emirates.
The total outstanding contractual amount of commitment towards unused credit card limits does not necessarily represent future cash requirements,
since these credit card limits may not be fully utilised.
Financial guarantees represent guarantees issued by the company on behalf of customers in favour of UAE Ministry of Labour and are fully secured
by cash collateral (Note 10).
Salaried mass
market
Self
employed
mass
market
Salaried mass
affluent
Others
Total
AED’000
AED’000
AED’000
AED’000
AED’000
3.1.5 Loans and advances
The gross amount of loans and advances, net of write off, which are current and past due and the corresponding impairment allowances are as
follows:
At 31 December 2010
As at 31 December
On balance sheet assets:
Loans and advances
- Credit cards
35,991
14,354
56,772
-
107,117
- Personal loans
78,150
12,113
123,847
-
214,110
- Auto loans
16,097
16,711
19,748
-
52,556
- Loans secured by deposits
-
-
874
-
874
Deposits with banks
-
-
-
62,733
62,733
Other assets
-
-
-
3,524
3,524
130,238
43,178
201,241
66,257
440,914
Total
Financial guarantees
Total
32,596
13,719
60,297
-
106,612
-
-
11,917
-
11,917
32,596
13,719
72,214
-
118,529
At 31 December 2009
On balance sheet assets:
Loans and advances
- Credit cards
- Personal loans
- Auto loans
- Loans secured by deposits
9,248
9,716
27,061
-
46,025
39,722
17,339
71,103
-
128,164
4,431
3,378
4,810
-
12,619
-
-
524
-
524
Deposits with banks
-
-
-
210,990
210,990
Other assets
-
-
-
6,906
6,906
53,401
30,433
103,498
217,896
405,228
3,983
8,422
23,389
-
35,794
-
-
477
-
477
3,983
8,422
23,866
-
36,271
Total
2009
AED'000
340,955
167,734
Past due up to 30 days
14,452
8,775
Past due 31-90 days
13,878
6,769
Past due 91-150 days
5,372
3,514
-
540
374,657
187,332
Current
(4,780)
(3,451)
Past due up to 30 days
(3,506)
(3,434)
Past due 31-90 days
(6,361)
(4,338)
Past due 91-150 days
(3,359)
(2,576)
-
(423)
Total
(18,006)
(14,222)
Net loan amount
356,651
173,110
Past due above 150 days
Total
Impairment
Off balance sheet items:
Unused credit card limits
Current
2010
AED'000
Past due above 150 days
Loans and advances of AED 16,268,602 (2009: AED 3,184,965) has been written off to the statement of comprehensive income. Loans and advances
of AED 23,123,424 (2009: AED 8,432,046) has been written off against the impairment allowance.
Off balance sheet items:
Unused credit card limits
Financial guarantees
Total
131
132
3.2 Liquidity risk
3.2.2 Off balance sheet items
Liquidity risk is the risk that the company is unable to meet its payment obligations associated with its financial liabilities when they fall due and to
replace funds when they are withdrawn. The consequence may be the failure to meet obligations to repay depositors and fulfil commitments to lend.
(a) Unused credit card limits
The company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when
due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company’s reputation.
The company’s liquidity management process includes:
• Managing day to day funding, through anticipating and monitoring future cash flow requirements.
• The primary tool employed by the company is the maturity mismatch analysis, which includes behavioural assumptions on debts and
loans repayments.
• Monitoring balance sheet liquidity ratios, market movements and interest rate forecasts.
• Setting and monitoring limits for the above mentioned process.
The date of the contractual amount of the company’s commitment towards unused credit card limits (Note 22(b)) is summarised in the
following table.
(b) Financial guarantees
Financial guarantees represent guarantees issued by the company on behalf of customers in favour of UAE Ministry of Labour (Note 22(b)) and
are also included in the following table based on the earliest contractual maturity date.
(c) Operating lease commitments
Sources of liquidity are regularly reviewed and the company seeks to diversify funding sources and increase investor base to ensure continuous
access to debt markets. All liquidity policies and procedures are subject to review and approval by the Asset and Liability Committee (“ALCO”).
The future minimum lease payments under non-cancellable operating leases for properties as disclosed in Note 22(a) are summarised in the
following table.
(d) Capital commitments
3.2.1 Non-derivative financial liabilities and liquidity risk
Capital commitments in respect of branch refurbishments and equipment and software purchases (Note 22(c)) are summarised in the
following table.
The table below presents the maturity profile of the cash flow payable by the company in respect of its non-derivative financial liabilities, by
remaining contractual maturities at the statement of financial position date. The amounts disclosed in the table are the contractual undiscounted
cash flows.
Less than 1
year
1-5 years
More than
5 years
Total
AED'000
AED'000
AED'000
AED'000
Customer deposits
Unused credit card limits
Operating lease commitments
49,470
28,220
-
77,690
Due to related parties
1,184
-
-
1,184
Borrowings
8,944
51,361
-
60,305
43,267
1,652
7,982
52,901
Other liabilities
1-5 years
More than
5 years
Total
AED’000
AED’000
AED’000
AED’000
106,612
-
-
106,612
11,917
-
-
11,917
3,333
7,275
-
10,608
350
-
-
350
122,212
7,275
-
129,487
35,794
-
-
35,794
At 31 December 2010
Financial guarantees
At 31 December 2010
Less than 1
year
Capital commitments
Total
At 31 December 2009
Total
102,865
81,233
7,982
192,080
Unused credit card limits
Financial guarantees
At 31 December 2009
Customer deposits
Operating lease commitments
27,092
6,386
-
33,478
1,368
-
-
1,368
Other liabilities
52,505
954
3,120
56,579
Total
80,965
7,340
3,120
91,425
Due to related parties
133
Capital commitments
Total
477
-
-
477
5,190
10,003
-
15,193
321
-
-
321
41,782
10,003
-
51,785
134
3.3 Market risk
Up to 3
months
3 months to
1 year
1 year to 5
years
Over 5 years
Non-interest
bearing
Total
AED’000
AED’000
AED’000
AED’000
AED’000
AED’000
117,689
92,072
-
-
1,564
211,325
4.48%
58,429
36,792
77,886
3
-
173,110
26.79%
Property and equipment
-
-
-
-
21,609
21,609
-
Intangible assets
-
-
-
-
28,402
28,402
-
Other assets
-
-
-
-
13,890
13,890
-
176,118
128,864
77,886
3
65,465
448,336
13,453
13,037
5,749
-
-
32,239
5.47%
-
-
-
-
1,368
1,368
-
of service benefits
-
-
-
-
2,847
2,847
-
Other liabilities
-
-
-
-
60,753
60,753
-
Shareholders’ equity
-
-
-
-
351,129
351,129
-
Total liabilities
and equity
13,453
13,037
5,749
-
416,097
448,336
Interest rate
sensitivity gap
162,665
115,827
72,137
3
(350,632)
The company takes on exposure to market risk, which is the risk that fair value or future cash flows will fluctuate as a result of changes in market
prices. Market risk arises from exposure to currency and interest rate fluctuations. The ALCO meets regularly to review and provide direction related
to interest rate risk, currency risk and price risk in the company. It ensures that the exposures of the company are within prudent levels.
Effective
interest rate
At 31 December 2009
The main measurement techniques used to measure and control market risks are outlined below:
Assets
Cash and deposits with banks
3.3.1 Interest rate risk
Loans and advances
Interest rate risk arises from mismatches in the interest rate profile of the company’s assets and liabilities. Cash flow interest rate risk is the risk that
the future cash flows of a financial instrument will fluctuate due to changes in the market interest rates. The company takes on exposure to the
effects of fluctuations in the prevailing levels of market interest rates on both its fair value and cash flow risks. The company strives to maintain an
interest rate profile that will lead to financial performance consistent with its long term objectives.
The ALCO sets limits on the level of mismatch of interest rate re-pricing that may be undertaken, which are monitored by the market risk manager.
Regular stress testing is performed using hypothetical scenarios to monitor the company’s vulnerability to simultaneous shocks on market risks. It
gives an indication of the potential loss that arises in extreme conditions, facilitating the proactive management of market risks in an environment of
rapid market changes.
3 months to
1 year
1 year to 5
years
Over 5 years
Non-interest
bearing
Total
AED’000
AED’000
AED’000
AED’000
AED’000
AED’000
22,143
35,928
-
-
5,073
63,144
Liabilities and equity
Customer deposits
The table below summarises the company’s exposure to interest rate risk. It includes the company’s assets and liabilities at carrying amounts,
categorised by the earlier of contractual re-pricing or maturity dates.
Up to 3
months
Total assets
Due to related parties
Effective
interest rate
Employees’ end
At 31 December 2010
Assets
Cash and deposits with banks
Loans and advances
2.54%
140,265
61,254
155,128
4
-
356,651
30.08%
Property and equipment
-
-
-
-
15,876
15,876
-
Intangible assets
-
-
-
-
10,987
10,987
-
Other assets
-
-
-
-
9,288
9,288
-
162,408
97,182
155,128
4
41,224
455,946
Total assets
Interest rate risk is assessed by measuring the impact of reasonable possible change in interest rate movements. The company assumes a fluctuation
in interest rates of 10 basis points (bps) in interest rate and estimates the following impact on the net result for the year and equity at that date:
31,455
16,346
26,272
-
-
74,073
4.86%
-
-
-
-
1,184
1,184
-
54,968
-
-
-
-
54,968
7.34%
of service benefits
-
-
-
-
3,955
3,955
-
Other liabilities
-
-
-
-
54,789
54,789
-
Shareholders’ equity
-
-
-
-
266,977
266,977
-
Total liabilities
and equity
86,423
16,346
26,272
-
326,905
455,946
Interest rate
sensitivity gap
75,985
80,836
128,856
4
(285,681)
Due to related parties
Borrowings
Employees’ end
135
Interest rate sensitivity
The company is exposed to the effects of fluctuations in the prevailing levels of rates of interest on its cash flows.
Liabilities and equity
Customer deposits
-
Fluctuation in interest rates by 10 bps
2009
2010
AED’000
AED’000
29
35
The interest rate sensitivities set out above are illustrative only and employ simplified scenarios. The sensitivity does not incorporate actions that
could be taken by management to mitigate the effect of interest rate movements.
-
136
3.3.2 Currency risk
As at 31 December
The company does not have any significant foreign currency exposures, since its transactions are in UAE Dirhams or US Dollar and the UAE Dirham
is currently pegged against the US Dollar.
3.3.3 Price risk
Price risk is the risk that the value of the company’s financial instruments will fluctuate as a result of changes in market prices caused by factors
other than interest rates or foreign currency movements. The price risk arises primarily from uncertainty about the future price of financial
instruments that the company holds. The company does not hold financial instruments whose value is affected by changes in market prices and
therefore it is not exposed to any price risk.
3.4 Fair value of financial assets and liabilities
The fair values of the company’s financial assets and liabilities approximate their carrying values as reflected in these financial statements.
3.5 Capital management
The company’s objectives when managing capital, which is a broader concept than the ‘equity’ on the face of balance sheets, is:
• to comply with the capital requirements set by its regulator;
• to safeguard the company’s ability to continue as a going concern so that it can continue to provide returns for shareholders; and
• to maintain a strong capital base to support the development of its business.
Capital adequacy is monitored regularly by the company, based on the guidelines stipulated by the Central Bank of the UAE. The minimum capital
requirement stipulated by the Central Bank of the UAE is 15%. The company calculates its capital adequacy ratio in accordance with guidelines
established by the Central Bank of the UAE prescribed as the ratio of total capital to total assets and is analysed as follows:
2010
2009
AED’000
AED’000
550,000
550,000
35,544
31,872
Tier 1 capital
Share capital
Share premium
Accumulated losses
(230,743)
(114,261)
Current year loss
(87,824)
(116,482)
Intangible assets
(10,987)
(28,402)
Total tier 1 capital
255,990
322,727
Tier 2 capital
-
-
Total tier 2 capital
-
-
255,990
322,727
On balance sheet
443,674
419,074
Off balance sheet
-
-
443,674
419,074
Risk asset ratio on total capital base
57.7%
77.0%
Risk asset ratio on tier 1 capital base
57.7%
77.0%
15%
15%
Total regulatory capital
Risk weighted assets
Total risk weighted assets
Minimum risk asset ratio required by the UAE Central Bank
4 Critical accounting estimates and judgements
The company makes estimates and assumptions that affect the reported amounts of assets and liabilities within the next financial year. Estimates
and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances.
Impairment losses on loans and advances
The company establishes an allowance for impairment losses that represents its estimate of incurred losses in its loan portfolio. The main
components of this allowance are a specific loss component that relates to individual exposures, and a collective impairment loss allowance for
losses that have been incurred but not identified, established for groups of homogeneous loans with similar risk characteristics. Future cash flows
from a group of loans and advances that are collectively evaluated for impairment are estimated on the basis of historical loss experience for
assets with credit risk characteristics similar to those in the group. Where historical loss experience is insufficient to assess trends, the company
has adopted market loss experience for impairment, whereby loss rates are based on movement of accounts of the peer group from one stage of
delinquency to another.
137
138
5 Cash and deposits with banks
7 Property and equipment
For the purpose of the cash flow statements cash and cash equivalents have been calculated as follows:
As at 31 December
2010
2009
AED’000
AED’000
Cash and deposits with banks
63,144
211,325
Less: deposits with maturities over 3 months
(35,928)
(92,072)
27,216
119,253
Deposits with banks are placed with financial institutions in the UAE, and carry interest ranging from 1.1% to 3.5% (2009: 2.2% to 6.0%) per
annum.
As at 31 December
Personal loans
Auto loans
Credit cards
Less: impairment allowance
Motor
vehicles
Work in
progress
Total
AED’000
AED’000
AED’000
AED’000
AED’000
At 1 January 2009
371
26,512
467
3,990
14,141
11,507
493
Additions
780
2,663
80
Transfers
-
371
-
At 31 December 2009
(371)
-
14,921
14,541
573
467
30,502
Additions
331
920
47
40
1,338
Transfers
31
436
-
(138)
(1,307)
(467)
-
-
-
15,145
14,590
620
40
At 1 January 2009
(1,600)
(1,495)
(120)
-
(3,215)
Charge for the year
(3,229)
(2,342)
(107)
-
(5,678)
At 31 December 2009
(4,829)
(3,837)
(227)
-
(8,893)
Charge for the year
(3,239)
(3,185)
(122)
-
(6,546)
At 31 December 2010
6 Loans and advances
Leasehold
improvements
Cost
Disposals/write off
Deposits of AED 35,125,000 (2009: AED 35,150,000) have been pledged against guarantees issued by banks on behalf of the company.
Office
equipment
(1,445)
30,395
Depreciation
2010
2009
AED’000
AED’000
214,984
128,688
52,556
12,619
107,117
46,025
374,657
187,332
(18,006)
(14,222)
356,651
173,110
Movement in provision for impairment:
At 1 January
14,222
336
22,318
Impairment charge for the year (Note 19)
26,907
Written off during the year
(23,123)
(8,432)
At 31 December
18,006
14,222
Disposals/write off
At 31 December 2010
84
836
-
-
920
(7,984)
(6,186)
(349)
(14,519)
At 31 December 2009
10,092
10,704
346
467
21,609
At 31 December 2010
7,161
8,404
271
40
15,876
Net book value
Collateral held by company against loans and advances are as follows:
Customer deposits of AED 874,467 (2009: AED 524,467) are held as collateral for loans and advances to customers. The fair values of these deposits
approximate their carrying amounts (Note 10).
139
140
10 Customer deposits
8 Intangible assets
As at 31 December
Consultancy
services
Consultancy
project
Computer
software
Work in
progress
Total
AED’000
AED’000
AED’000
AED’000
AED’000
13,366
426
19,658
-
33,450
51
2,216
601
(477)
(4,625)
Corporate term deposits
At 31 December 2008
Additions
-
2,868
Amortisation charge
(2,814)
At 31 December 2009
10,552
-
17,249
601
28,402
-
-
11
-
11
Additions
Transfers
Amortisation charge
Write off
At 31 December 2010
-
-
283
(926)
-
(9,626)
-
(2,450)
-
10,924
-
-
(283)
(4,169)
-
2010
2009
AED’000
AED’000
74,073
32,239
Customer deposits carry an effective interest rate of 4.9% (2009: 5.5%) per annum.
(7,916)
(5,095)
(255)
(12,331)
63
10,987
Customer deposits of AED 874,467 (2009: AED 524,467) and AED 11,917,000 (2009: AED 477,000) are held as collateral for loans and advances to
customers and guarantees issued on behalf of customers, respectively (Note 6 and Note 22).
11 Related party transactions and balances
Related parties comprise of shareholders and directors of the company, entities controlled by them and the key management personnel of the
company. During the year the company entered into the following significant transactions with related parties in the ordinary course of business:
(a)Transactions with key managerial personnel
Intangible assets amounting to AED 12.3 million (2009: Nil) have been written off during the year on the basis that management has assessed that no
further economic benefits is expected from their future use. The loss on derecognition of the intangible assets is recognised in the statement of the
comprehensive income for the year ended 31 December 2010.
9 Other assets
As at 31 December
Key managerial remuneration comprise:
Year ended 31 December
Salaries and other short-term employee benefits
2010
2009
AED’000
AED’000
Prepaid expenses
4,114
4,536
Advances to employees
1,667
2,320
849
773
Other employee benefits
2010
2009
AED’000
AED’000
15,714
16,137
1,547
609
2010
2009
AED’000
AED’000
1,184
1,368
(b)Other related party transactions and balances
Deposits
Accrued interest receivable
Others
Less: impairment allowance (Note 19)
173
3,378
2,510
2,883
9,313
13,890
(25)
9,288
13,890
As at 31 December
Due to related parties
The company has the following balances due to related parties representing amounts initially paid by the shareholders for the purpose of financing
operating expenses incurred by the company.
The balances due to related parties are payable on demand and bear no interest.
141
142
12 Borrowings
As at 31 December
Bank overdraft
Term loan
Transaction costs
Amortisation of transaction costs
At 31 December
14 Other liabilities
2010
2009
AED’000
AED’000
27,930
-
30,000
57,930
(3,800)
2010
2009
AED’000
AED’000
Accrued expenses
30,910
44,792
-
Sundry creditors
12,491
7,908
-
Other employee benefits (Note 16)
7,982
3,120
-
Deferred fee and commission income
1,815
3,787
838
-
Others
1,591
1,146
54,968
-
54,789
60,753
During the year, the company has obtained a bank facility of AED 190 million (2009: Nil) of which AED 57.9 million has been drawn down as at
31 December 2010. The bank facilities are unsecured, and have a final maturity in August 2013 and carries an effective interest rate of 7.3%
(2009: Nil) per annum.
15 Share capital and share premium
Share capital
The bank overdraft is treated as non-current as the company has the discretion to refinance or rollover the obligation for at least twelve months
after the year ended 31 December 2010.
As at 31 December
The maturity profile of the drawn down facility is disclosed in Note 3.2.1 and the undrawn facility at 31 December 2010 is as follows:
As at 31 December
As at 31 December
2010
2009
AED’000
AED’000
550,000
550,000
Authorised, issued and paid up share capital:
2010
2009
AED’000
AED’000
550,000 shares (2009: 550,000 shares) of AED 1,000 each (2009: AED 1,000 each)
Share premium
Floating rate
Expiring within one year
120,000
-
Expiring beyond one year
12,070
-
132,070
-
At 1 January
165,000 shares issued at a premium of AED 110 each
Provision for share issue expenses written back
The bank facility has been arranged to help finance the proposed expansion of the company’s activities.
At 31 December
13 Provision for employees’ end of service benefits
2010
2009
AED’000
AED’000
2010
2009
AED’000
AED’000
31,872
13,722
-
18,150
3,672
-
35,544
31,872
Share issue expenses of AED 3.7 million were provided for in 2008 on the basis that this amount may become payable in connection with shares
issued by the company in that year. These expenses have been written back in the current year since they are no longer considered to be payable by
the company.
At 1 January
2,847
1,363
16 Other employee benefits
Charge for the year (Note 21)
1,569
1,732
On 1 January 2009, the company implemented an equity based payment scheme (“the scheme”) which entitles certain employees to cash payments,
determined on the basis of the book value of the shares of the company at the end of each of its financial years commencing 2011 to 2015 and
subject to the condition that the company achieves its budgeted results during the expected seven year period covered by the scheme.
Payments during the year
At 31 December
(461)
3,955
(248)
2,847
The provision for end of service benefits due to expatriate employees is made in accordance with the UAE Labour Law for their periods of service
up to the balance sheet date. In accordance with the provisions of IAS 19, actuary has carried out an exercise to assess the present value of its
obligations as at 31 December 2010, using the projected unit credit method, in respect of employees’ end of service benefits payable under the UAE
Labour Law. The expected liability at the date of leaving the service has been discounted to net present value using a discount rate of 7.5%
(2009: 4.8%). Under this method an assessment has been made of an employee’s expected service life with the company and the expected basic
salary at the date of leaving the service. Actuary has assumed average annual increment/promotion costs of 7.0% (2009: 1.5%).
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The cost of the scheme for 2010 is AED 7,982,254 (2009: AED 3,120,271) (Note 14) and is determined on the basis of the assumption that most of the
eligible employees will remain with the company during the period covered by the scheme and the company will achieve its budgeted results during
each of the years covered by the scheme.
17 Statutory reserve
In accordance with the UAE Federal Law No. 8 of 1984, as amended, 10% of the net profit of the company has to be transferred to a nondistributable legal reserve until such reserve equals 50% of the paid up share capital of the company. No such transfers were made by the company
since the company has incurred a loss during the year ended 31 December 2010.
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21 Staff costs
18 Interest income and expense
Year ended 31 December
2010
2009
AED’000
AED’000
Interest income
Year ended 31 December
Salaries and other short term benefits
2010
2009
AED’000
AED’000
67,945
71,177
- on loans and advances
83,215
26,541
Employees’ end of service benefits
1,569
1,732
- on deposits with banks
3,067
12,590
Other employee benefits
4,862
3,120
86,282
39,131
74,376
76,029
3,036
1,216
350
11
3,386
1,227
2010
2009
AED’000
AED’000
3,333
5,190
7,275
10,003
10,608
15,193
Interest expense
- on customer deposits
-
on borrowings
22 Contingent liabilities and commitments
(a)Operating lease commitments
The future minimum lease payments under non-cancellable operating leases for properties are as follows:
As at 31 December
19 Impairment charge, net
Year ended 31 December
2010
2009
AED’000
AED’000
Impairment charge on loans and advances (Note 6)
26,907
22,318
Loans and advances written off
16,269
3,185
25
-
43,201
25,503
No later than 1 year
Later than 1 year and no later than 5 years
Impairment charge on other assets (Note 9)
Recovery of loans and advances
(1,027)
42,174
(21)
(b)Commitment to extend credit and guarantees
As at 31 December
25,482
Unused credit card limits
Financial guarantees
20 General and administrative expenses
Year ended 31 December
Staff costs (Note 21)
2010
2009
AED’000
AED’000
74,376
76,029
Occupancy costs
11,817
10,918
Outsourced services
17,644
15,956
Write off of intangible assets, property and equipment
12,856
-
Information technology expenses
6,413
7,263
Advertising, publicity and promotional expenses
3,712
3,029
Legal and professional fees
Other expenses
145
278
1,280
12,961
8,565
140,057
123,040
2010
2009
AED’000
AED’000
106,612
35,794
11,917
477
118,529
36,271
The total outstanding contractual amount of commitment towards unused credit card limits does not necessarily represent future cash requirements,
since these credit card limits may not be fully utilised.
Financial guarantees represent guarantees issued by the company on behalf of customers in favour of UAE Ministry of Labour and are fully secured
by cash collateral (Note 10).
(c)Capital commitments
At 31 December 2010, the company has capital commitments of AED 349,750 (2009: AED 321,397) in respect of branch refurbishments and
equipment and software purchases. The company’s management is confident that future net revenues and funding will be sufficient to cover
this commitment.
146
Bibliography
1
2
3
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5
6
7
CIA The World Factbook
1975 to 2005 Censuses, Ministry of Economy, Government of UAE
Department of Statistics, Government of Singapore
‘Analytical Report on Economic and Social Dimensions in the United Arab Emirates, 2009’. National Bureau of Statistics, Government of UAE.
Oil & Gas Journal, Vol.106.48 (December 22, 2008)
The Global Financial Centres Index 9, March 2011, Qatar Financial Centre Authority
Monetary Authority of Singapore, Government of Singapore
Corporate Head Office
Dunia Finance LLC
P.O. Box 44005
Abu Dhabi, UAE
24-hour contact center
+9714-42-dunia (38642)
www.dunia.ae
149