Third Annual ReportFinancial Year 2010

Success through excellence

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

Contents

"We move forward together as one at dunia, in our ardor to fulfill above and beyond all that we set out to achieve."

"At dunia, the customer is the core of our focus. We go the extra mile to always deliver with excellence for our customers."

Salem Rashid Al NoaimiChairman

Rajeev KakarExecutive Director & CEO

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Chairman's message

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 NoaimiChairman

dunia’s edge since inception has been its relentless focus on customer centricity…

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CEO's messageDear 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

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.

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'…

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2010: The year of consolidationThis 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 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.

Strengthening our pillars and building on our assetsAs 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 quarterof 2010.

How we fortified our core strengths in 2010We 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.

We decided as a team to relentlessly continue in the upkeep of all our promises without compromise…

"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

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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.

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.

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.

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 2011We 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 KakarExecutive Director & CEO

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…

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.

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 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.

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 2010In 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.

How we fortified our core strengths in 2010

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Creating excellence…

C O R N E R S T O N E S

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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.

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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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 self-government 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

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 timesdunia’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 EastThe 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 EastSingapore’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 trinityIntently 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 Poddunia’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 IdeologyWe 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.

Founded on successful heritages

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Fullerton Financial Holdings (FFH) invests in financial institutions in emerging markets, bringing an operational perspective to all investment decisions. Where appropriate, FFH supervises andinfluences 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.

www.fullertonfinancial.com

Mubadala Development Company (Mubadala) is a catalyst for the economic diversification of Abu Dhabi. Established and owned by the Government of Abu Dhabi, thecompany’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 multi-billion 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.

www.mubadala.ae

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 areMubadala Development Company and AD Invest.

www.wahacapital.ae

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.aaagroup.com

The dunia ascent towards excellenceAmalgamation 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.

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Board of Directors

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Rajeev KakarExecutive Director and Chief Executive Officer

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.

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.

Salem Rashid Al NoaimiChairman

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.

Francis RozarioDirector

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 all-purpose 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.

Khaled Abdulla Juma Al QubaisiDirector

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.

Directors

Dr. Ahmed Khalil Al-MutawaDirector

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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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.

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 & AffiliationsRajeev 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 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.

Management

Rajeev KakarExecutive Director and Chief Executive Officer

“Since inception, we did not just ‘operate to survive’. We took the tougher route to ‘innovate and strategize’ to succeed...”

Venu ParameshwarChief Financial Officer

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.

Hend Al-AliHuman Resources Manager

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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).

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.

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.

Mariam ElsamnyMarketing, Product and Corporate Affairs Head

Raman KrishnanChief Risk Officer

Monindra GroverHuman Capital Head

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.

Barlas BalabanerOperations Head

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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.

Sanjay KaoConsumer Business Head

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.

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 HurbasStrategic Analytics 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.

Dhruv PanchalChief Information Officer

Anthony D’SouzaAudit & Compliance Head

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M I L E S T O N E S

Pearls of excellence

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Our franchise• Wehavecompletedthesecondfull-yearofsuccessfuloperations

and built on the franchise. Today dunia is a well-known financial services brand in the UAE.

• Asatestamenttoourcustomercentricwayofdoingbusiness, we were ranked 10th in Gulf News’ UAE A-List of “Customer Focused Organizations”.

• Weconstantlyinnovateandintroducefinancialsolutionsthatmatch the evolving needs of our customers.

• Wehavebuiltasaferandmorediversifiedmixofcustomerreceivables.

• Wehaveoneofthemostwidelydistributednetworkofbranchesand 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’sstate-of-the-art24-hourcontactcenteroffersfull 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’sworld-classinternetbankingplatformprovides24-houraccess with full flexibility and convenience.

• Wehavesuccessfullypositionedourselvesasadepositoryinstitution. We have focused on granular deposits with longer tenure to fund our asset side of business and raised over AED 74 million in deposits.

• Wehavebuiltseveralstrategicalliancesforproductinnovation,brand building and increased customer acquisition.

• duniahasastrongcommunityfocusthroughits“duniaCares”Corporate Social Responsibility program and is widely recognized for the same.

Our financials• Provenstrongperformanceintoplineandbottomlinefigures.• Wehaveahealthyandstronglygrowingrevenueline.Wehave

focused on building a higher, better quality and more sustainable revenue base, with a higher percentage of it coming from secured assets.

• Excludingone-timers,costtoincomeratiohassteadilyfallento131%. Expenses show a decreasing and predictable trend and are expected to decrease even further.

• Costofcredithasstabilizedatalowandpredictablelevelinthefinancial year 2010.

• Ourgrowthisincreasinglyself-fundedthroughgranulardepositgrowth.

• Efficiencyratios(excludingone-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.

Our processes• duniahasdemonstratedexcellenceonriskmanaged,analytics

driven credit setup which is bolstered by our technology enabled and process led customer centric approach.

• Remotechannelsatduniaallowustoprovidemultipletouchpoints 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…

• Ourhighlevelofautomationcapabilitiesreducesoperationalcosts, while our revenues have been on an upward trajectory.

• Weexerciseriskmanagementinallelementsofcreditcyclemanagement. We focus on managing risks predictably and pricing our risks adequately.

• OurhealthyLoanLossReserveof4.8%asat31December,2010creates adequate loss absorption capacity.

• Wehavecompliedwithallregulatoryrequirementsinproductandprocess design.

• duniahasputinplaceawell-definedandfunctioningcorporategovernance framework at both the Executive Management and the Board Levels.

Our people• duniaisdrivenbyahighlyseasoned,diverseandentrepreneurial

senior management team with multi-functional experience and expertise in multiple markets around the world.

• duniahasmorethan700employees.• 85%areofduniastaffareincustomerfacingrolesenablingusto

always be in sync with the evolving customer needs.• Diversityisamanagementthemeandnotjustaprincipleindunia.

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.

• Wearecommittedtogrowingthenationaltalenttool.Werunspecialized programs under ‘Kawader dunia’ to develop UAE talent – Al Tamouh for fresh graduates, Al Waaed for part-timers and Al-Nukhba for experienced individuals.

• TraininganddevelopmentisacontinuousactivityinduniaTrainingensures 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.• Wehaveensuredhighemployeemoraleandsuccessfulretention.

Achieving growth and sustainability through excellenceAt 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.

Execution excellence through a balanced scorecard approach

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'06-'07

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'09'10

Creating history... ...continuously striving to reach newer heights

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.

• Jan 1st employee joins dunia

• Mar - Jul dunia is conceptualized

• Sep '06 - Aug '08 Planning & blue printing phase to deliver a unique customer focused business model

• Jan 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

• Jul 700th 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

• May 100th 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 Silver Credit Card range

• Dec dunia launches dunia@work

• 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 opening

• Jun Al Quoz Service Center opening

• Jun Al Qusais Service Center opening

• Jun Oud Metha Service Centre opening

• Jul 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

Excellence through passion

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

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 The musical journey of a maestro who began with just one student and went on to create an entire orchestra

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.

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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.

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.

Understanding the market The compelling need to serve the consumer at the optimum, best steered dunia’s ideology of consumer segmentation.

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.

dunia’s unique value proposition

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-stop-shop 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.

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 .

Corporate

Commercial

SME

Self-Employed Mass Market Salaried Mass Market

Mass Affluent

Affluent

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Delivering excellence with a smile

Offering financial solutions to match customer needsdunia 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.

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.

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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.

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.

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.

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.

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.

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.

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.

Enabling superior service

Customer focused approach Our financial solutions are designed based on our clear understanding of customers' needs through extensive and periodic research.

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.

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.

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Delivering service excellence

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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.

Service excellence is the key… Holistic relationship management to help keep our customers always ahead

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.

19 financial centers spread across the UAEOur customer has access to one of the widest distribution networks in the UAE.

24-hour contact centerAnytime of the day, any day of the week, our customer can talk to dunia customer service representative and have their queries resolved.

Dedicated personal Relationship ManagerEvery dunia customer has a dedicated Relationship Manager who forms the first point of contact with the customer and is always available to help.

dunia onlineThrough 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.

Customer acquisitionProspective 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.

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.

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. 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

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 deepeningdunia’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.

Relationship managementOur 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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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

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.

Going the extra mile…

Creating capability for the future…

Our customer centric focus entails that we understand the customers’ needs end-to-end and deliver financial solutions with a service level that is nothing short of being benchmarked with the best.

The whole service aspect of dunia is carefully tracked against pre-set performance goals, so that the customer is ‘wow’ed in every interaction.

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

queries is measured every single day and the performance is tracked month on month.

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.

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.

Daily vital fews…

We have established a robust set of metrics to help us track performance on a daily basis…

• Opencustomercomplaints• Openlegal,regulatoryorCentralBank

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turnaround time to resolve customer complaints

– Total service requests escalated – Problem incidence – Problem resolution satisfaction – Timeliness of resolution

"It is my firm belief that I have a link with the past and a responsibility to the future."

King Hussein

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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.

UniversitiesWe 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 ManagementThe 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 UniversityNamed 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.

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 poolThe 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.

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 partnersdunia 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 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 thedunia Family Fun Day...

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

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.

Over 2.6 TONSof paper collected!

Giving back to the community

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dunia’s National Blood Donation Drive… over 1,000 lives saved!!dunia conducted its 7th 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.

dunia’s Art GalleryAt 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….

dunia’s Family Fun DayWhen 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.

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.

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.

Education, health, environmentand social improvement….

Artist name: Tejas S; Winner of 'Best Overall Painting' award

Children enjoying the day at the dunia Family Fun Day in Oud Metha Branch

Artist name: Richelle Almedia; Winner of 'Best UAE Landscape' painting award

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

...dunia plays a wholesome role in the community

Staff, customers and community members came to dunia branches to volunteer for blood donation

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Excellence through service

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Roger and ElleTwo 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.

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.

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...

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

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.

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.

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 peopleThe 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.

Unity in diversityDiversity 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 careersAt 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.

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Empowering women... ...enriching lives

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Excellence through perseverance

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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

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

Uma Ghosh DeshpandeThe woman who commenced an entire fashion line and television production company with just five hundred Dirhams in her pocket and a load of gumption!

her show is well into the sixth season and growing.

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’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

interior retail brand in UAE and other GCC markets.

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.

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Developing human capital...

dunia’s training & development and progressionAt 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

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.

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 areconstantly on a learning path and performance on an upward trajectory.

Building the UAE National talent poolPeople 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 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.

'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 part-time programThis 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

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:•Buildingafinancialservicesbrand•Marketingoffinancialservices•CampustoCorporate•Corporategovernance-AML, Internal controls•Creditandriskmanagementina dynamic environment•Workingindiverseteams

Al Tamouh - graduate leadership programAl 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

Management in Dubai. The program includes:•Coursesonmanagementsubjects•Lecturesbydunia’sbusiness leaders who will share their vision, experiences and achievements•First-handexperienceofworkingin banking functions•Teamchallenges•Businessplandesignand presentations

Al Nukhba - Qualified professional programThis 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 UAEnationals will be enrolled into leadership programs, and external business school diplomas and courses.

Our unique UAE National talent development program

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Excellence through creativity

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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.

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

Mohammed Saeed HaribAuteur, Maverick, Artist, Producer, Visualizer.... words that barely begin to describe what Mohammed Saeed Harib represents with his unlimited creativity and uncontained passion

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.

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dunia's Management Associate Programdunia 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 growthWe 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.

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...empowering people, enabling success

dunia’s Total Rewards ApproachAt dunia, we follow an overall rewards philosophy when developing specific strategies and programs

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.

"dunia is relentless in its passion and focus on empowering people, enabling success, and enriching lives."

Laurent DepollaExecutive Director, Mubadala

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Being true to our beliefs... ...delivering a rewarding experience

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.

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.

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.

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.

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.

Enabling success... ...through diversity

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Raising the BarAt 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:• aclearsetofgoalsandexpectationsfrom

each individual and their roles• aregularfeedbackmechanismwhere

their supervisors and the management team work together to develop them as a professional all round the year

• acontinuousimprovementprocessthatshows each employee their areas for improvement and means to improve themselves in the form of support and constant mentoring

• atoolthatdrivesexcellenceandappraisesemployees 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.

It’s a Win-Win Situationdunia 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 commitmentWe 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 peopleWe 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 communityWe 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 excellenceWe 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 ethicsIntegrity 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.

Employee

Performance Goals

Career Development

Learning & Development

Reward & Recognition

Continuous Performance Improvement

Continued Monitoring

Mentoringand Coaching

to developskills

Performance Management System

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Retailing success

Excellence through focus

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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.

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

Nitish JainFrom 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

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.

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The dunia winning spirit

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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 GovernanceA 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).

Our processesdunia 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.

dunia constantly strives to enhance its revenue lines with an expanding array of financial options, supported by extraordinary service. A state-of-the- art 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 straight-through 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 GovernanceCorporate 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 best-in-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.

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.

Corporate Governance structure in dunia

Tier One CommitteesThe 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: • AssetandLiabilityCommittee • ProductCommittee • BusinessRiskandComplianceCommittee • CreditRiskCommittee • ExecutiveOperatingCommittee • ITSteeringCommittee • HumanResourcesCommittee • VendorManagementCommittee

Tier Two CommitteesThe 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: • AuditCommittee • RiskManagementCommittee • EmployeeRemunerationandNomination Committee

Q1-09

535

Cost/Income(%)

Steady path to profitability

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100

200

300

400

500

600

Q2-09

331

Q3-09

255

Q4-09

230

Q1-10

197

Q2-10

124

Q3-10

124

Q4-10

103

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Internal Audit and ControlsInternal 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.

As independent assurances need to be provided to the Board and the senior management, regular examinations

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.

Audit, control and compliance in dunia

Internal Audit & ControlIndependent review of all departments to ensure that appropriate controls are firmly in place to mitigate potential risks identified

External Audit ControlsOn-going review of policies and processes with external auditors.

Compliance and Regulatory ControlsComprehensive review to ensure organization is in full compliance with dunia’s policies and regulatory requirements.

External Audit controls and Compliance & Regulatory controlsdunia’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.

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 leverageThe 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.

Risk Governance in dunia

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.

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 cross-functionally 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.

Governance, Process Control,Risk Management...

...intrinsic to dunia's strive for excellence

Source: Government of Australia Corporate Governance Handbook (adaptation)

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Our approach towards ensuring Risk-Reward balanceAt 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.

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 scale-up 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.

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5

10

15

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25

2009 2010

22.224.5

Risk Adjusted Yield (RAY)(%)

Healthy and increasing

risk adjusted yield

"Don't strive to be perfect. Strive for excellence."Victoria Principal

95 9695 96

Excellence through innovation

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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

Nilesh VedFrom 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

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 is inspired and takes up after both the father figures in his life, his father and his father-in-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.

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!

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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.

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.

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.

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 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.

Strong top-line performance

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.

Our financials

2010 summary financials

Customers (‘000s) 28.9 57.7 28.8 100%

Customer Receivables 173.1 356.7 183.6 106%

Revenue 45.6 106.0 60.4 132%

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%

Return on Equity (43.4%) (28.2%) 15.2% 35%

Amounts(in AED Mln)

2009 2010Absolute

Improvement(2010 vs. 2009)

%Improvement

(2010 vs. 2009)

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.

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400

Customer base has doubled from 29,000 in2009 to 58,000 in 2010 (100% y-o-y growth)

Loans and advances to customers have more than doubled from AED 173 Mln in 2009 toAED 357 Mln in 2010 (106% y-o-y growth)

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20

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30

35

Qtr4 2009 Qtr4 2010

15.9

33.7

112% revenue growthQtr4 2010 vs. Qtr4 2009

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)

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4

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8

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12

Dec 2009 Dec 2010

4.9

12.0

142% revenue growth Dec 2010 vs. Dec 2009

Revenue growth in recent months is even higher, with December 2010 revenue ofAED 12 Mln being 142% higher compared to December 2009

Revenue(AED Mln)

Revenue(AED Mln)

Revenue(AED Mln)

0

20

40

60

80

100

120

2008 2009 2010

6.2

45.6

106.0

132% revenue growth2010 vs. 2009

Full year revenue has more than doubled from AED 46 Mln in 2009 to AED 106 Mln in 2010 (132% y-o-y growth)

Customers and customer receivables

Revenue

101 102

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.

dunia’s strong revenue trajectory in 2010 is a direct consequence of the realignment strategy, and is driven by 3 main factors:•Healthyyieldsoncustomerloansandadvances•Risk-tieredpricingstrategy•Increasingcontributionfromfee-basedincome

This has resulted in a richer, more diversified revenue mix that is less susceptible to compression risk, while simultaneously ensuring strong operating leverage.

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.

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.

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35

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0

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0

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40

60

80

100

120

Fee/Total revenue

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

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)

Fee

Interest

Core Expenses(AED Mln)

Core Expenses(AED Mln)

Core Expenses(AED Mln)

0

30

60

90

120

150

2008 2009 2010

120.1136.6 138.9

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10

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20

25

30

35

40

Qtr4 2009 Qtr4 2010

36.5 35.1

0

2

4

6

8

10

12

Dec 2009 Dec 2010

12.0 11.7

2% expense growth2010 vs. 2009

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

4% lower expensesQtr4 2010 vs. Qtr4 2009

Moreover, recent trends show that expenses have actually reduced in absolute terms, with Qtr4 2010 expenses 4% lower compared to Qtr4 2009

3% lower expensesDec 2010 vs. Dec 2009

Similarly, December 2010 expenses are 3% lower in absolute terms compared to December 2009

2010 Core Expenses exclude AED 12.8 Min of one-time impairment of Intangible Assets

Revenue quality

Expenses

Growth in business drivers outpace growth in expenses

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. •Allhiringisfocusedonthefront-line,particularlyincustomer-facingandrevenuegeneratingroles•Realignmentofcoststowardsthefront-end,withback/middleofficeheadcountfrozenat2009levels•Costrenegotiationwithvendorsandserviceproviders•Tightcontrolsonalldiscretionaryexpenselines

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.

Expense efficienciesResulting 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.

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0

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lower cost/income ratio lower cost/income ratio lower cost/income ratio

243.5

Cost/Income andExpense/Customer receivables(%)

Cost/Income andExpense/Customer receivables(%)

Cost/Income andExpense/Customer receivables(%)

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 toQtr4 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)

Qtr4 2009 Qtr4 2010 Dec 2009 Dec 20102009 2010

Expense %

Cost/Income

Expense %

Cost/Income

Expense %

Cost/Income

38.0

104.0

expense/customer receivablesexpense/customer receivables

Strategic cost management

103 104

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.

Consistent improvement in portfolio credit qualityCost of CreditCredit 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.

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.

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.

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. 0

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Strong operating leverage of 116% in Qtr4 2010 compared to Qtr4 2009 (112% revenue growth and 4% lower expenses)

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8

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12

Stronger operating leverage of 145% in December 2010 compared to December 2009 (142% revenue growth and 3% lower expenses)

Qtr4 2009 Qtr4 2010

15.9

36.533.7 35.1

Dec 2009 Dec 2010

4.9

12.0 12.0 11.7

Operating leverage (AED Mln) 112% higher revenue

4% lower expenses

=116% positive JAWS

Qtr4 2010 vs. Qtr4 2009

142% higher revenue

3% lower expenses

=145% positive JAWS

Dec 2010 vs. Dec 2009

Operating leverage (AED Mln)

Expense %

Revenue

Expense %

Revenue

2010 Core Expenses exclude AED 12.8 Mln of one-time impairment of Intangible Assets

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30

Qtr4 2009 Qtr4 2010

28.0

14.6

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)

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Dec 2009 Dec 2010

25.0

14.7

Similar improvement in cost of credit in December 2010 dropping to 14.7% from 25.0% in December 2009 (41% improvement)

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30

41% lower cost of credit %2010 vs. 2009

48% lower cost of credit %Qtr4 2010 vs. Qtr4 2009

41% lower cost of credit %Dec 2010 vs. Dec 2009

Total cost of credit in 2010 dropped to 15.2% from 25.6% in 2009 (41% improvement)

2009 2010

25.6

15.2

Cost of credit(%)

Cost of credit(%)

Cost of credit(%)

Secured assetsA 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(%)

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25

2009 2010

8.9

24.4

174% growth2010 vs. 2009

Secured assets represent 24% of total loan value sourced in 2010, compared to only 9% in 2009 (174% growth)

Secured/Total loans & advances(%)

0

3

6

9

12

15

Dec 2009 Dec 2010

7. 4

14.5

97% growthDec 2010 vs. Dec 2009

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)

105 106

NPL coverage and impairment reservesAs 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%.

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).

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.

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.

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2009 2010

22.224.5

10% higher RAY2010 vs. 2009

Risk adjusted yields have improved to 24.5% in 2010, compared to 22.2% in 2009(10% improvement over prior year)

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25

Qtr4 2009 Qtr4 2010

19.1

24.8

30% higher RAYQtr4 2010 vs. Qtr4 2009

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)

Risk adjusted yield(%)

Risk adjusted yield(%)

NPL Cover

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Dec 2009 Dec 2010

3.51 3.35

3.35x NPL coveras of Dec 2010

Continued healthy NPL cover of 335% in 2010, remaining stable compared to 2009

Impairment reserves/Loans & advances(%)

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8

Dec 2009 Dec 2010

7.6

4.8

4.8 % impairment reserveas of 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

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.

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.

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 long-term, stable funding to supplement its strong paid-up capital base of AED 586 million.

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).

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Deposits(AED Mln)

Qtr2 ’09 Qtr4 ‘09 Qtr2 ’10 Qtr4 ’10 Qtr1 ‘10 Qtr2 ‘10 Qtr3 ‘10 Qtr4 ‘10 Qtr1 ‘10 Qtr2 ’10 Qtr3 ’10 Qtr4 ‘10 Qtr1 ‘10 Qtr2 ‘10 Qtr3 ’10 Qtr4 ‘10

21.4

32.2

58.2

74.1

130% deposits growthQtr4 2010 vs. Qtr4 2009

Customer deposits have grownto AED 74 Mln by December 2010 (130% increase over December 2009)

0.0

0.5

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Average ticket size(AED Mln)

1.7

1.01.2

0.5

increasing granularitythrough lower deposit ticket size

In-line with the strategy to raise granular deposits, average ticket size of customer deposits has dropped to a healthy level ofAED 0.5 Mln by December 2010

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Average tenor(Months)

tenured deposits

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

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Average interest rate (% p.a.)

stable cost of funds

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

15 15 1618

5.1 5.1 5.1 5.2

Proactive liquidity risk management

107 108

Net IncomeAs 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.

dunia has successfully achieved operating income break-even in December 2010Operating Margindunia’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.

dunia has successfully achieved operating income break-even in December 2010, and is well on its way to achieving full monthly net income break-even. The operating profit in December 2010 was AED 0.3 million in its maiden month of achieving this milestone.

Return on Equity (ROE)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.

-100

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0

Full year operating loss in 2010 has reduced to AED 45.7 Mln (50% improvement compared to 2009)

2009 2010(91.0)

(45.7)

-25

-20

-15

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-5

0

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)

(20.6)(19.2) (18.1)

(7.0)

(1.4)

Qtr4 ‘09 Qtr1 ‘10 Qtr2 ‘10 Qtr3 ‘10 Qtr4 ‘10-8-7-6-5-4-3-2-101

50% higher margin2010 vs. 2009

93% higher marginQtr4 2010 vs. Qtr4 2009

104% higher marginDec 2010 vs. Dec 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)

Dec 2009 Dec 2010(7.1)

0.3

Operating Margin(AED Mln)

Operating Margin(AED Mln)

Operating Margin(AED Mln)

-120

-100

-80

-60

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-20

0

Full year net loss in 2010 has reduced toAED 87.8 Mln (25% improvement compared to 2009)

2009 2010

(116.5)

(87.8)

-35

-30

-25

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-15

-10

-5

0

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)

(32.0)

(25.0)(27.5)

(21.1)

(14.2)

Qtr4 ‘09 Qtr1 ‘10 Qtr2 ‘10 Qtr3 ‘10 Qtr4 ‘10-12

-10

-8

-6

-4

-2

0

55% NI improvementQtr4 2010 vs. Qtr4 2009

61% NI improvementDec 2010 vs. Dec 2009

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)

Dec 2009 Dec 2010(10.8)

(4.2)

25% NI improvement2010 vs. 2009

Net Income(AED Mln)

Net Income(AED Mln)

Net Income(AED Mln)

-50

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0

Full year 2010 Return on Equity is 35% better compared to 2009

2009 2010

(43.4)

(28.2)

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0

However, recent months indicate an even stronger improvement with Qtr4 2010 Return on Equity 54% better compared to Qtr 4 2009

(44.3)

(28.9)(34.3)

(28.2)

(20.3)

Qtr4 ‘09 Qtr1 ‘10 Qtr2 ‘10 Qtr3 ‘10 Qtr4 ‘10-50

-40

-30

-20

-10

0

Similarly, the trend in December 2010 has improved even further, with Return on Equity 53% better compared to December 2009

Dec 2009 Dec 2010

(39.5)

(18.4)

35% ROE improvement2010 vs. 2009

Return on Equity(% p.a.) 54% ROE improvement

Qtr4 2010 vs. Qtr4 2009 53% ROE improvement

Dec 2010 vs. Dec 2009

Return on Equity(% p.a.)

Return on Equity(% p.a.)

109 110

Excellence through drive

110

111 112

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.

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!

Khaled Abdulla Juma Al QubaisiKhaled 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

112111

113 114

T H E S T O R Y A H E A D

Driving excellence

115 116

"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

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.

117 118

A U D I T E D F I N A N C I A L S

Trends of success

119 120

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.

BackgroundThe 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 Businessdunia 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 high-technology card product that allows for global access to funds through ATMs worldwide, and at retail point-of-sale outlets.

DirectorsThe directors of the company in office at the date of this report are as follows:1. Mr. Salem Rashid Al Noaimi, Chairman2. Mr. Rajeev Kakar, Executive Director and Chief Executive Officer 3. Mr. Francis Rozario, Director4. Mr. Khaled Abdulla Juma Al Qubaisi, Director5. Dr. Ahmed Khalil Al Mutawa, Independent Director

Share Capital and Share PremiumThe 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.

Business EvolutionIn 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: • Equalopportunitytoall • Acceptanceofeveryonedespitetheirdifferences • Inclusivebehaviourandhelpspeopleovercome

exclusive behaviour • Strongresultsorientation

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

Product Range

• UnsecuredLoans-Cashloans,Educationloans,Marriageloansetc…

• SecuredLoans-Newcarloans,Usedcarloans,Loansagainstexistingcar,Commercialvehicleloans

• CreditCards• WPSpayrollprocessing• Guarantees-LabourGuaranteestoMinistryofLabour,

Guaranteesforbusinessneeds• CorporateDeposits–FixedRates,FloatingRates

women into senior management roles.

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.

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 • 4branchesand15servicecentersatwell-locatedandconvenient

locations in Abu Dhabi, Al Ain, Dubai and Sharjah• afullyautomatedmannedandIVRassisted24x7CallCenter• round-the-clockaccessthroughourcustomeronlineaccess

capability on www.dunia.ae• AteamofRelationManagerswhoprovidegreaterconvenienceto

customers through personalized service at their homes and offices

Dunia has also built a STRONG & WELL RECOGNISED UAE BRAND• duniaranked10thinServiceAlistofcustomer–focused

organizations across the UAE by Gulf News• WeremaincommittedtoCorporateSocialresponsibilitythrough

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

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 well- defined 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.

Overalldunia 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.

AuditorsThe financial statements have been audited by PricewaterhouseCoopers who retire and, being eligible, offer themselves for reappointment.

AcknowledgementThe 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 KakarExecutive Director and Chief Executive Officer

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.

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Independent auditor’s report to the shareholders of Dunia Finance LLCReport on the financial statementsWe 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 statementsManagement 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 responsibilityOur 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.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn 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.

Report on other legal and regulatory requirementsAs required by the UAE Federal Law No (8) of 1984, as amended, we report that:

(i) we have obtained all the information we considered necessary for the purpose of our audit;

(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;

(iii) the company has maintained proper books of account and the financial statements are in agreement therewith;

(iv) the financial information included in the Director’s report is consistent with the books of accounts of the company; and

(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.

PricewaterhouseCoopers7th March 2011

Paul SuddabyRegistered Auditor Number 309Dubai, United Arab Emirates

W Hunt, AH Nasser, P Suddaby and JE Fakhoury are registered as practicing auditors with the UAE Ministry of Economy

Statement of financial position

As at 31 December 2010 2009

Note AED’000 AED’000Assets

Cash and deposits with banks 5 63,144 211,325Loans and advances 6 356,651 173,110Property and equipment 7 15,876 21,609Intangible assets 8 10,987 28,402Other assets 9 9,288 13,890Total assets 455,946 448,336

Liabilities And Equity

Customer deposits 10 74,073 32,239Due to related parties 11(b) 1,184 1,368Borrowings 12 54,968 -Provision for employees’ end of service benefits 13 3,955 2,847Other liabilities 14 54,789 60,753Total liabilities 188,969 97,207

Equity

Share capital 15 550,000 550,000Share premium 15 35,544 31,872Accumulated losses (318,567) (230,743)Total equity 266,977 351,129Total 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 Rajeev KakarChairman Executive Director and Chief Executive Officer

The notes on pages 126 to 146 form an integral part of these financial statements.

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Statement of comprehensive income Statement of changes in equity

Year ended 31 December 2010 2009

Note AED’000 AED’000

Interest income 18 86,282 39,131Interest expense 18 (3,386) (1,227)

Net interest income 82,896 37,904

Fees and commission income, net 23,134 7,176Other operating income 18 554

Operating income 106,048 45,634

Impairment charge, net 19 (42,174) (25,482)General and administrative expenses 20 (140,057) (123,040)Amortisation and depreciation 7,8 (11,641) (13,594)

Net loss for the year (87,824) (116,482)

Other comprehensive income - -

Total comprehensive result for the year (87,824) (116,482)

Issued share capital

Share premium

Accumulatedlosses Total

Note AED’000 AED’000 AED’000 AED’000

At 1 January 2009 275,000 13,722 (114,261) 174,461Issue of share capital 275,000 18,150 - 293,150Total comprehensive

result for the year - - (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) 351,129Provision for share issue

expenses written back 15 - 3,672 - 3,672Total comprehensive result

for the year - - (87,824) (87,824)

At 31 December 2010 550,000 35,544 (318,567) 266,977

The notes on pages 126 to 146 form an integral part of these financial statements. The notes on pages 126 to 146 form an integral part of these financial statements.

125 126

Statement of cash flows

Year ended 31 December 2010 2009

Note AED'000 AED’000

Operating activities

Net loss for the year (87,824) (116,482)Adjustments:

Depreciation 7 6,546 5,678Amortisation of intangible assets 8 5,095 7,916Employees’ end of service benefits 13 1,569 1,732Impairment charge 19 43,201 25,503Write off of intangible assets, property and

equipment 7,8 12,856 -

Operating cash flow (18,557) (75,653)Changes in operating assets and liabilities:

Employees’ end of service benefits paid 13 (461) (248)Deposits with maturities over 3 months 5 56,144 (31,922)Loans and advances 6 (226,717) (178,121)Other assets 9 4,577 (525)Customer deposits 10 41,834 23,568Other liabilities 14 (2,292) 15,775

Net cash used in operating activities (145,472) (247,126)

Investing activities

Purchase of property and equipment 7 (1,338) (3,990)Purchase of intangible assets 8 (11) (2,868)

Net cash used in investing activities (1,349) (6,858)

Financing activities

Due to related parties 11(b) (184) (114,900)Borrowings 12 54,968 -Issue of share capital 15 - 293,150

Net cash generated from financing activities 54,784 178,250

Net decrease in cash and cash equivalents (92,037) (75,734)Cash and cash equivalents, beginning of the year 119,253 194,987

Cash and cash equivalents, end of the year 5 27,216 119,253

The notes on pages 126 to 146 form an integral part of these financial statements.

Notes to the financial statements for the year ended 31 December 2010 1 Legal status and principal activityDunia 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.

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:

Bugis Investments Mauritius Pte Ltd 40%(a wholly owned subsidiary of FullertonFinancial Holdings Pte Ltd)

Alpha Investment Company LLC 31%(a subsidiary of Mubadala Development Company PJSC)

Al Waha Capital - PJSC 25%

A A Al Moosa Enterprises LLC 4%

2 Summary of significant accounting policiesThe 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.

2.1 Basis of preparationThe 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.

(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:

- IAS 1 (amendment), ‘Presentation of financial statements’ - IAS 36 (amendment), ‘Impairment of assets’

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.

(b) Standards, amendments and interpretations to published standards which are not yet mandatorily effective and have not been early adopted by the company

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:

• IFRS9,‘Financialinstrumentspart1:Classificationandmeasurement’ 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:

- 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

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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:

• Delinquencyincontractualpaymentsofprincipalorinterest; • Demiseofthedebtor.

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 equivalentsCash 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 benefitsThe 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 ProvisionsProvisions 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 recognitiona. 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.

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.

• IAS24(revised),‘Relatedpartydisclosures’,issuedinNovember2009. 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 translationa. 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 assetsSoftware 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

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 equipmentProperty 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: YearsOffice and other equipment 3-5Leasehold improvements Up to 8Motor 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 advancesLoans 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

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(ii) Collectively assessed loans and advances Impairment is assessed on a collective basis to:

• Coverlosseswhichhavebeenincurredbuthavenotyetbeen identified on loans and advances subject to individual assessment.

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.

• Coverlossesforhomogeneousgroupsofloansandadvancesthat 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.

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 policiesThe 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

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 pro-actively 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 provisioningThe 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.

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 benefitsPension 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 BorrowingsBorrowings 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.

3 Financial risk managementThe 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.

3.1 Credit riskThe 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 measurementIn 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.

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3.1.4 Maximum exposure to credit risk before collateral held or other credit enhancementsThe 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 segmentation of loans and advances is used as a basis to assess the quality of the loans and effectively manage the credit risk.

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).

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:

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.

Salaried mass market

Selfemployed

mass market

Salaried mass affluent Others Total

AED’000 AED’000 AED’000 AED’000 AED’000

At 31 December 2010

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

Total 130,238 43,178 201,241 66,257 440,914

Off balance sheet items:

Unused credit card limits 32,596 13,719 60,297 - 106,612

Financial guarantees - - 11,917 - 11,917

Total 32,596 13,719 72,214 - 118,529

At 31 December 2009

On balance sheet assets:

Loans and advances

- Credit cards 9,248 9,716 27,061 - 46,025

- Personal loans 39,722 17,339 71,103 - 128,164

- Auto loans 4,431 3,378 4,810 - 12,619

- Loans secured by deposits - - 524 - 524

Deposits with banks - - - 210,990 210,990

Other assets - - - 6,906 6,906

Total 53,401 30,433 103,498 217,896 405,228

Off balance sheet items:

Unused credit card limits 3,983 8,422 23,389 - 35,794

Financial guarantees - - 477 - 477

Total 3,983 8,422 23,866 - 36,271

As at 31 December 2010 2009

AED'000 AED'000

Current 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

Past due above 150 days - 540

Total 374,657 187,332

Impairment

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)

Past due above 150 days - (423)

Total (18,006) (14,222)

Net loan amount 356,651 173,110

133 134

3.2 Liquidity risk 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.

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:• Managingdaytodayfunding,throughanticipatingandmonitoringfuturecashflowrequirements.• Theprimarytoolemployedbythecompanyisthematuritymismatchanalysis,whichincludesbehaviouralassumptionsondebtsand

loans repayments.• Monitoringbalancesheetliquidityratios,marketmovementsandinterestrateforecasts.• Settingandmonitoringlimitsfortheabovementionedprocess.

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”).

3.2.1 Non-derivative financial liabilities and liquidity risk

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.

3.2.2 Off balance sheet items(a) Unused credit card limits

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

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

Capital commitments in respect of branch refurbishments and equipment and software purchases (Note 22(c)) are summarised in the following table.

Less than 1 year 1-5 years

More than5 years Total

AED'000 AED'000 AED'000 AED'000

At 31 December 2010

Customer deposits 49,470 28,220 - 77,690Due to related parties 1,184 - - 1,184Borrowings 8,944 51,361 - 60,305Other liabilities 43,267 1,652 7,982 52,901

Total 102,865 81,233 7,982 192,080

At 31 December 2009

Customer deposits 27,092 6,386 - 33,478Due to related parties 1,368 - - 1,368Other liabilities 52,505 954 3,120 56,579

Total 80,965 7,340 3,120 91,425

Less than 1 year 1-5 years

More than5 years Total

AED’000 AED’000 AED’000 AED’000

At 31 December 2010

Unused credit card limits 106,612 - - 106,612Financial guarantees 11,917 - - 11,917Operating lease commitments 3,333 7,275 - 10,608Capital commitments 350 - - 350

Total 122,212 7,275 - 129,487

At 31 December 2009

Unused credit card limits 35,794 - - 35,794Financial guarantees 477 - - 477Operating lease commitments 5,190 10,003 - 15,193Capital commitments 321 - - 321

Total 41,782 10,003 - 51,785

135 136

3.3 Market riskThe 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.

The main measurement techniques used to measure and control market risks are outlined below:

3.3.1 Interest rate riskInterest 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.

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.

Interest rate sensitivity

The company is exposed to the effects of fluctuations in the prevailing levels of rates of interest on its cash flows.

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:

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.

Up to 3 months

3 months to 1 year

1 year to 5 years Over 5 years

Non-interest bearing Total

Effective interest rate

AED’000 AED’000 AED’000 AED’000 AED’000 AED’000

At 31 December 2010

Assets

Cash and deposits with banks 22,143 35,928 - - 5,073 63,144 2.54%

Loans and advances 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 -

Total assets 162,408 97,182 155,128 4 41,224 455,946

Liabilities and equity

Customer deposits 31,455 16,346 26,272 - - 74,073 4.86%

Due to related parties - - - - 1,184 1,184 -

Borrowings 54,968 - - - - 54,968 7.34%

Employees’ end

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) -

Up to 3 months

3 months to 1 year

1 year to 5 years Over 5 years

Non-interest bearing Total

Effective interest rate

AED’000 AED’000 AED’000 AED’000 AED’000 AED’000

At 31 December 2009

Assets

Cash and deposits with banks 117,689 92,072 - - 1,564 211,325 4.48%

Loans and advances 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 -

Total assets 176,118 128,864 77,886 3 65,465 448,336

Liabilities and equity

Customer deposits 13,453 13,037 5,749 - - 32,239 5.47%

Due to related parties - - - - 1,368 1,368 -

Employees’ end

of service benefits - - - - 2,847 2,847 -

Other liabilities - - - - 60,753 60,753 -

Shareholders’ equity - - - - 351,129 351,129 -

Total liabilitiesand equity 13,453 13,037 5,749 - 416,097 448,336

Interest rate sensitivity gap 162,665 115,827 72,137 3 (350,632) -

2009 2010

AED’000 AED’000

Fluctuation in interest rates by 10 bps 29 35

137 138

3.3.2 Currency risk

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 liabilitiesThe fair values of the company’s financial assets and liabilities approximate their carrying values as reflected in these financial statements.

3.5 Capital managementThe company’s objectives when managing capital, which is a broader concept than the ‘equity’ on the face of balance sheets, is:• tocomplywiththecapitalrequirementssetbyitsregulator;• tosafeguardthecompany’sabilitytocontinueasagoingconcernsothatitcancontinuetoprovidereturnsforshareholders;and• tomaintainastrongcapitalbasetosupportthedevelopmentofitsbusiness.

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:

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.

As at 31 December 2010 2009

AED’000 AED’000

Tier 1 capital

Share capital 550,000 550,000

Share premium 35,544 31,872

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 - -

Total regulatory capital 255,990 322,727

Risk weighted assets

On balance sheet 443,674 419,074

Off balance sheet - -

Total risk weighted assets 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%

Minimum risk asset ratio required by the UAE Central Bank 15% 15%

139 140

5 Cash and deposits with banks For the purpose of the cash flow statements cash and cash equivalents have been calculated as follows:

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.

Deposits of AED 35,125,000 (2009: AED 35,150,000) have been pledged against guarantees issued by banks on behalf of the company.

6 Loans and advances

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).

7 Property and equipment

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

As at 31 December 2010 2009

AED’000 AED’000

Personal loans 214,984 128,688

Auto loans 52,556 12,619

Credit cards 107,117 46,025

374,657 187,332

Less: impairment allowance (18,006) (14,222)

356,651 173,110

Movement in provision for impairment:

At 1 January 14,222 336

Impairment charge for the year (Note 19) 26,907 22,318

Written off during the year (23,123) (8,432)

At 31 December 18,006 14,222

Office equipment

Leasehold improvements

Motor vehicles

Work in progress Total

AED’000 AED’000 AED’000 AED’000 AED’000

Cost

At 1 January 2009 14,141 11,507 493 371 26,512Additions 780 2,663 80 467 3,990Transfers - 371 - (371) -At 31 December 2009 14,921 14,541 573 467 30,502Additions 331 920 47 40 1,338Transfers 31 436 - (467) -Disposals/write off (138) (1,307) - - (1,445)At 31 December 2010 15,145 14,590 620 40 30,395

Depreciation

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)Disposals/write off 84 836 - - 920At 31 December 2010 (7,984) (6,186) (349) - (14,519)

Net book value

At 31 December 2009 10,092 10,704 346 467 21,609

At 31 December 2010 7,161 8,404 271 40 15,876

141 142

8 Intangible assets

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

10 Customer deposits

Customer deposits carry an effective interest rate of 4.9% (2009: 5.5%) per annum.

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

Key managerial remuneration comprise:

(b) Other related party transactions and balances

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.

Consultancy services

Consultancy project

Computer software

Work in progress Total

AED’000 AED’000 AED’000 AED’000 AED’000

At 31 December 2008 13,366 426 19,658 - 33,450Additions - 51 2,216 601 2,868Amortisation charge (2,814) (477) (4,625) - (7,916)At 31 December 2009 10,552 - 17,249 601 28,402Additions - - 11 - 11Transfers - - 283 (283) -Amortisation charge (926) - (4,169) - (5,095)Write off (9,626) - (2,450) (255) (12,331)At 31 December 2010 - - 10,924 63 10,987

As at 31 December 2010 2009

AED’000 AED’000

Prepaid expenses 4,114 4,536

Advances to employees 1,667 2,320

Deposits 849 773

Accrued interest receivable 173 3,378

Others 2,510 2,883

9,313 13,890

Less: impairment allowance (Note 19) (25) -

9,288 13,890

As at 31 December 2010 2009

AED’000 AED’000

Corporate term deposits 74,073 32,239

Year ended 31 December 2010 2009

AED’000 AED’000

Salaries and other short-term employee benefits 15,714 16,137Other employee benefits 1,547 609

As at 31 December 2010 2009

AED’000 AED’000

Due to related parties 1,184 1,368

143 144

12 Borrowings

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.

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.

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:

The bank facility has been arranged to help finance the proposed expansion of the company’s activities.

13 Provision for employees’ end of service benefits

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%).

14 Other liabilities

15 Share capital and share premium

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.

16 Other employee benefitsOn 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.

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 reserveIn 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 non-distributable 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.

2010 2009

AED’000 AED’000

At 1 January 2,847 1,363

Charge for the year (Note 21) 1,569 1,732

Payments during the year (461) (248)

At 31 December 3,955 2,847

Share capital

As at 31 December 2010 2009

AED’000 AED’000

Authorised, issued and paid up share capital:

550,000 shares (2009: 550,000 shares) of AED 1,000 each (2009: AED 1,000 each) 550,000 550,000

Share premium

2010 2009

AED’000 AED’000

At 1 January 31,872 13,722

165,000 shares issued at a premium of AED 110 each - 18,150

Provision for share issue expenses written back 3,672 -

At 31 December 35,544 31,872

As at 31 December 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

Others 1,591 1,146

54,789 60,753

As at 31 December 2010 2009

AED’000 AED’000

Bank overdraft 27,930 -

Term loan 30,000 -

57,930 -

Transaction costs (3,800) -

Amortisation of transaction costs 838 -

At 31 December 54,968 -

As at 31 December 2010 2009

AED’000 AED’000

Floating rate

Expiring within one year 120,000 -

Expiring beyond one year 12,070 -

132,070 -

145 146

18 Interest income and expense

19 Impairment charge, net

20 General and administrative expenses

21 Staff costs

22 Contingent liabilities and commitments

(a) Operating lease commitments

The future minimum lease payments under non-cancellable operating leases for properties are as follows:

(b) Commitment to extend credit and guarantees

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.

Year ended 31 December 2010 2009

AED’000 AED’000

Interest income

- on loans and advances 83,215 26,541

- on deposits with banks 3,067 12,590

86,282 39,131

Interest expense

- on customer deposits 3,036 1,216

- on borrowings 350 11

3,386 1,227

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

Impairment charge on other assets (Note 9) 25 -

43,201 25,503

Recovery of loans and advances (1,027) (21)

42,174 25,482

Year ended 31 December 2010 2009

AED’000 AED’000

Staff costs (Note 21) 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 278 1,280

Other expenses 12,961 8,565

140,057 123,040

Year ended 31 December 2010 2009

AED’000 AED’000

Salaries and other short term benefits 67,945 71,177

Employees’ end of service benefits 1,569 1,732

Other employee benefits 4,862 3,120

74,376 76,029

As at 31 December 2010 2009

AED’000 AED’000

No later than 1 year 3,333 5,190

Later than 1 year and no later than 5 years 7,275 10,003

10,608 15,193

As at 31 December 2010 2009

AED’000 AED’000

Unused credit card limits 106,612 35,794

Financial guarantees 11,917 477

118,529 36,271

Bibliography

1 CIA The World Factbook2 1975 to 2005 Censuses, Ministry of Economy, Government of UAE3 Department of Statistics, Government of Singapore4 ‘Analytical Report on Economic and Social Dimensions in the United Arab Emirates, 2009’. National Bureau of Statistics, Government of UAE.5 Oil & Gas Journal, Vol.106.48 (December 22, 2008)6 The Global Financial Centres Index 9, March 2011, Qatar Financial Centre Authority7 Monetary Authority of Singapore, Government of Singapore

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Corporate Head Office

Dunia Finance LLC

P.O. Box 44005

Abu Dhabi, UAE

24-hour contact center

+9714-42-dunia (38642)

www.dunia.ae