Issue 6 | July 2017 | Arab Bank for Invesment & Foreign Trade

Al Masraf Annual General Assembly Meeting 2017

With Al Masraf e-Statement you will be able to:

Protect the Environment by reducing the use of paper.Keep your financial informaaon secure.Have access to your e-Statement anyame, anywhere via your e-mail.

Kindly ensure to register/update your e-mail address with us at the earliest by visiing one of our branches.

Please note that we will disconinue sending printed account statements by 31st August 2017.

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Dear Readers,

We are pleased to present you with the 6th issue of “Thimar” Magazine that is issued by Al Masraf on a regular basis. This issue includes lots of news and activities of the bank in addition to a number of other banking and economic issues.

On the level of financial results, we are happy about the results achieved by the Arab Bank for Investment and Foreign Trade (Al Masraf) during 2016 as a continuation of its successes over the past years. These past years witnessed our ability to implement an ambitious strategy that is aimed at fulfilling our customer needs and requirements and achieving the best revenues for our shareholders. Despite the great challenges faced during 2016 such as declining oil prices and other economic difficulties as well as keen competition, Al Masraf has made several achievements where we have made record profits of AED 433 million.

During the past three years, Al Masraf has succeeded in implementing the strategy that is based upon continuing growth, providing developed banking services, ensuring to offer excellent customer service, following a conservative approach in risk management and retaining the best qualified staff members as well. During the year, we have also launched our strategy for the next years (2017-2021) that is aimed at enhancing the financial performance of the bank by maintaining a strong and diversified balance sheet, continuing to achieve a stable and sustainable growth and achieving excellence in the various areas of our business activities. And the new strategy has gained full support from Al Masraf board of directors.

The plan includes a number of initiatives to develop products and services and benefit from the strengths of the bank to enhance the effectiveness and efficiency of its operations in local and international markets with the aim of achieving future growth. On the other hand, Al Masraf has continued to focus on enhancing emiratisation of jobs, where the UAE national employees started to constitute 32% of the total staff members working at the various departments of the bank. In addition we have managed to emiratise all the branch staff thus achieving 100% Emiratization in all Al Masraf branches.

Faisal GaladariChief Executive Officer

FROM THE DESK OF THE CEO

EDITORIAL TEAM

Bachar DibAhmed NagyRejoy Koithara

INDEX

7 Al Masraf opens its new branch inRas Al Khaimah

8 Al Masraf CEO honored with “Best CEO

for Emiratization Award 2016”

9 Award for widest implementation of happiness meter

6 Al Masraf Strategy 2017 - 2021 meeting

With Al Masraf e-Statement you will be able to:

Protect the Environment by reducing the use of paper.Keep your financial informaaon secure.Have access to your e-Statement anyame, anywhere via your e-mail.

Kindly ensure to register/update your e-mail address with us at the earliest by visiing one of our branches.

Please note that we will disconinue sending printed account statements by 31st August 2017.

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EVENTS

AL MASRAF PROFITS INCREASE BY 7 PER CENT TO AED 433 MILLION IN 2016

The Arab Bank for Investment and Foreign Trade (Al Masraf) recorded a net profit of AED 433 million in 2016—reflecting a growth of 7 per cent as compared to the AED 405 million profit it posted in 2015. The company’s operating profit also rose by 7 per cent to AED 694 million.

The remarkable growth of the profits is a result of Al Masraf’s move to expand its loan portfolio by 12 per cent to reach AED 10.54 billion in 2016. The bank also achieved positive results in consolidating its client base and boosting its ability to attract and utilize deposits in the national economy.

In 2016, clients’ deposits increased by 12 per cent to reach AED 10.72 billion, while the assets jumped to AED 17.8 billion with a growth of 18 per cent over the previous year.

The financial results demonstrate the strong performance achieved by Al Masraf in 2016 and its high-level capabilities that contributed in expanding its lending portfolio, mainly targeted towards the corporate sector. The bank has high financial solvency that meet and exceed the requirements of both the Central Bank of the UAE and Basel Committee

Al Masraf achieved strong performance despite global market’s fluctuations”

-Ben Youssef

on Banking Supervision. The Capital Adequacy Ratio (CAR) of Al Masraf is 23.9 per cent, which is a high rate that reflects its ability to expand credits efficiently and competitively in the UAE market that witness sharp competition among banks.

“We are pleased with the strong financial performance of 2016. We succeeded to achieve positive results despite the strong competition within the local banking market and the regional and global markets” said Mohamed M Ben Yousef, Chairman, Al Masraf, commenting on the financial results of 2016. “We were able to face the emerging challenges and enhance our financial results, taking advantage of the strong global position of the UAE, which has a diverse economic base, modern infrastructure and business-friendly environment,” he added.

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“Our commitment to innovation and excellence in customer service were the cornerstone of Al Masraf’s strong performance in 2016,” Faisal Galadari CEO Al Masraf said. The bank launched a group of initiatives and products that had a significant impact on achieving growth in all our business segments, as we made use of the most of the available opportunities. We also enforced the IT infrastructure all over the year, developed the service channels to increase the level of customer satisfaction and enhance the quality of our products. We also expanded our presence in the Northern Emirates with the opening of a new branch in the emirate of Ras Al Khaimah. The bank had the honor of winning Sheikh Khalifah award for Excellence in recognition of our commitment to implementing the best international practices and our continuous efforts to achieve excellence in all areas of work.” He added.

Galadari expected the bank to continue its strong performance during 2017. He said that raising interest rates in the market would enhance competition between banks which result in introducing more attractive products for customers. He added that the bank will launch new products this year to attract more customers and deposits, and will continue implementing the Strategic three-year Plan, work on the development of digital services through harnessing the latest banking systems and transforming its branches into digital branches as well as upgrading ATMs. “The bank will open during 2017 two new branches one in Mussafah in Abu Dhabi and the other in Dubai’s Sheikh Zayed Road” he said. He also confirmed that the bank will continue to develop its human resources through training and investing in national human resources, expecting an Emiritization rate of more than 35% by the end of the year.

Our Commitment to Innovation and Excellence in customer service was the cornerstone in our strong

performance”-Galadari

EVENTS

PERFORMANCE IN Q1 OF 2017

In spite of the hard circumstances through the last period, the Arab Bank for Investment and Foreign Trade (Al Masraf) managed to accomplish a growth of 11% in net profits through Q1 of current year to reach AED 111 Million. Mr. Galadari said, “The banks faced the SME’s problem of financial stumble and fall and were obliged to increase the irregular-debt appropriations. The banks became more insightful and selective when financing that sector’s projects. The banks’ approach included financial compromises with the owners of the SME’s to support that vital sector of economy’’. He also said that the problem of SME’s did not negatively impact Al Masraf, which continued its good performance to accomplish a 12% return on capital during this year.

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ACHIEVEMENTS

AL MASRAF STRATEGY 2017 - 2021 MEETING

Al Masraf has launched its new strategy for the next five years (2017-2021) after few months of continuous work and perseverance as well as intensive studies with the help of a number of consultants. Such a new strategy has received the trust and full support of the members of the board of directors of the bank. This new strategy includes a number of initiatives for developing banks and products and utilizing the bank strengths to increase the efficiency of its business in the local and international markets with the aim of achieving future growth. Commenting on the strategy, Faisal Galadari, the CEO, has said, “The new strategy is going to enhance our competitive ability and enable us to grow our share of the targeted markets. Therefore, we have cooperated with managerial consultancy company to conduct extensive studies about the market and our customer needs with the aim of developing an action plan that could contribute to charting the future of the bank for the next five years.”

He has also added, “The strategic focus of the bank will revolve around four themes or aspects of growth that could contribute to increasing the market share of the bank in the local market. It will also enhance the bank business in the countries of the region and those of North Africa, especially in the field of trade finance. Moreover, such a new strategy shall focus on innovation factor in order to cope with international trends witnessed by banking sector towards digitalism in addition to using digital technologies for the purpose of maintaining our competitive capability, enhancing the actual added value and providing an excellent banking experience.

At the end, he has pointed out that such a new strategy will serve as a main platform for the bank to achieve our goals of well-thought-out growth and expansion in some selected sectors. We will also strive to boost cooperation among main business groups, create new opportunities and utilize them and focus on meeting our customer needs and achieving the aspirations of our shareholders.

Furthermore, Al Masraf will develop a series of procedures that

are aimed at implementing a new strategy, including creation of a special department to carry out the control of such a new strategy and manage the major programs of its activity.

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ACHIEVEMENTS

Under the patronage of HH Sheikh Saud bin Saqr Al Qasimi, Member of the Supreme Council and Ruler of Ras Al Khaimah, Sheikh Khalid bin Saud Al Qasimi inaugurated Arab Bank for Investment and Foreign Trade, Al Masraf, branch in Ras Al Khaimah.

The inauguration ceremony was attended by Sheikh Mohamed bin Kayed Al Qasimi, Chairman of Department of Economic Development and HE Mohamed bin Yousif, Chairman of the Board of Directors Arab Bank for Investment and Foreign trade, some of the board Directors, Mr. Faisal Galadari, Al Masraf CEO, and a number of distinguished clients and bank CEOs.

“It is a great honor for us to open a new branch in the Emirate of RAK.” HE Mohammed bin Yousif, Chairman of the Board of Directors said. “It is under His Highness Sheikh Saud bin Saqr Al Qasimi’s patronage, support and follow-up Ras Al Khaimah has achieved remarkable growth in all areas of business. The Emirate also emerged as one of the most important economic and tourist destinations in the United Arab Emirates as well as an investment attracting hub for distinct investors and companies. We look forward to participating in the efforts of supporting the development in the emirate of Ras Al Khaimah through our new branch and reaffirm our commitment to providing the best banking services and solutions to our customers.”

Faisal Galadari, CEO of Al Masraf said: “The opening of our branch in Ras Al Khaimah comes in line with our efforts to strengthen our presence in the Northern Emirates and in accordance with our strategy to expand the activities of the bank all over the country. Al Masraf is keen on expanding its relations with the customers in RAK being retail, corporate or institutions, so as they make the best benefits of our banking products and services.”

“The new branch is equipped with the latest banking technologies and innovative programs that enhance best quality standards of services which ensure the convenience of our customers. The branch will be committed to providing an integrated package of services for retail and business customers.” - He added.

AL MASRAF OPENS ITS NEW BRANCH IN RAS AL KHAIMAH

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AWARDS & PARTNERSHIPS

In recognition of his continuous commitment to the policy of Emiratization, Faisal Galadari, Chief Executive Officer of the Arab Bank for Investment and Foreign Trade (Al Masraf), was honored with the award for the best chief executive in the field of Emiritization for 2016 organized by Human Resources committee at Emirates Institute for Banking and Financial Studies. The award aims to encourage CEOs’ in the banking sector to develop effective and ambitious strategies of Emiritization.

His Highness Sheikh Sultan bin Mohammed bin Sultan Al Qasimi, Crown Prince and Deputy Ruler of Sharjah, Chairman of the Executive Council of the Emirate of Sharjah, presented the award to Faisal Galadari on the sidelines of 19th round of the National Career Exhibition, which was held at Sharjah Expo Center, in recognition of Galadari’s distinctive vision and achievements in the area of Emiratization and social responsibility.

“Our wise leadership in the United Arab Emirates has set a clear vision in the field of recruitment and training of the UAE citizens,” Mr. Galadari said expressing his happiness with winning this prestigious award. “Being among the fastest growing and developed institutions in UAE, we are committed to innovating policies and mechanisms to attract distinctive national talents and upgrade their skills in a systematic and thoughtful manner through sophisticated training programs, which provide them with the prudent professional expertise that qualify them for top positions in the banking sector,” he added.

AL MASRAF CEO HONORED WITH “BEST CEO FOR EMIRATIZATION AWARD 2016”

The “Best CEO for Emiritization Award” was launched in 2007 as part of the awards program of developing human resources in the banking and financial sector. The Award criteria includes vision, leadership, achievements in Emiratization, as well as social responsibility.

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AWARDS & PARTNERSHIPS

Arab Bank for Investment and Foreign Trade (Al Masraf) won the award. “The Widest Implementation of Happiness Meter across Emirates” in recognition of his efforts to delight his customers. HH Sheikh Mansour bin Mohammed bin Rashid Al Maktoum, Chairman of Dubai International Marine Sports Club, handed over the award to Mr. Adel Al-Bagh, Head of Branches at Al Masraf, during the 23rd Dubai Business Awards event held at Dubai World Trade Center.

“We are proud to receive this recognition for our continued efforts to make our customers happy,” said Mr. Abderrezak Trabelsi, Assistant General Manager, “The Happiness Index,” which has been adopted at all branches of the Bank, is an important step in our efforts to measure customer satisfaction with our products and services. This will allow us to get a clear picture of the needs and aspirations of our clients,

AL MASRAF WINS AWARD FOR THE WIDEST IMPLEMENTATION OF HAPPINESS METER ACROSS UAE

which will help us to improve the quality of our services and develop our products. He added that the Bank’s receipt of this award is in recognition of its efforts to achieve excellence and broaden our customers by providing the best services and the best products and providing an enjoyable banking experience. Last year, Al Masraf won the Sheikh Khalifa Award for Excellence in 2016.

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The Abu Dhabi City Municipality and Arab Bank for Investment and Foreign Trade (Al Masraf) signed a Mortgage Escrow Account Manager Agreement, under which Al Masraf is officially authorized to open escrow accounts in the Emirate of Abu Dhabi.

The Agreement was signed on behalf of Abu Dhabi City Municipality by engineer Abdul Wahab Aida Al Jabri, acting Executive Director of Municipal Services; and by Faisal Galadari, Chief Executive Officer on behalf of Al Masraf. Present at the signing ceremony were Hussein Al Junaibi, Director of Real Estate Registration, Abu Dhabi City Municipality; Ahmed Alrefaei, Chief Operations Officer at Al Masraf and a number of executives from both parties.

Commenting on the Agreement, engineer Abdul Wahab Aida Al Jabri, acting Executive Director of Municipal Services, said: “The implementation of resolution governing the real estate market epitomizes the keenness of the Department of Municipal Affairs and Transport to streamline the real estate sector. It reflects the efforts to nurture a disciplined investment climate governed by clearly defined rules and standards responsive to the needs of the real estate market and professionals. It also reflects the keen interest of Abu Dhabi City Municipality to safeguard the rights of all parties involved in the estate sector and will have a positive bearing on all parties besides guaranteeing the rights of all parties of the real estate sector.”

“The Municipality has made great strides in issuing developer licenses to practice real estate activity and registering account trustees at banks to implement project escrow accounts under the new rules and regulations. The civic body has designated working teams to enforce the law in accordance with Resolution No.39 issued by HE Musabbah Mubarak Al Murar, Acting General Manager of Abu Dhabi City Municipality, to enforce the Real Estate Law No.3 of 2015,” he continued.

“Out of its keenness on establish closer ties with the UAE’s flagship banks, the Municipality signed this agreement with Al Masraf to foster partnerships ties with national institutions, supervise all activities relating to land and real estate sector. The agreement supports sustainable growth, attracts investments to

ABU DHABI MUNICIPALITY & AL MASRAF SIGN MORTGAGEESCROW ACCOUNT MANAGER AGREEMENT

the real estate sector, enhances the local economic development and raises the competitive edge of the emirate’s economy. Therefore, it is a pleasure to register Al Masraf as a real estate escrow accounts manager in Abu Dhabi emirate, given its long experience in laws and in-depth knowledge of the real estate market & its needs in addition to its capability to offer the banking services required for developing this vital sector,” added the Acting General Manager of Abu Dhabi City Municipality.

On this occasion, Al Masraf stated that the Agreement signed with Abu Dhabi City Municipality was part of its strategy aimed at bolstering partnership and cooperation with major institutions. It also comes as part of its commitment to support the sweeping development drive witnessed by the Emirate of Abu Dhabi. The Bank believes that the Agreement contributes effectively to enforcing laws governing the real estate market, availing regular investment opportunities as per the standards and values of sustainability, and nurturing real estate trading environment at par with the highest safety and security standards.

The Agreement contributes to streamlining the real estate sector in Abu Dhabi emirate, and upgrading land and real estate procedures & services in a comprehensive manner. In particular, it regulates the process of approving and registering units in property development projects in the emirate during the off-plan sale phase, in a way that protects to the interests of investors and all related parties.

Ahmed Alrefaei, Chief Operating Officer of Al Masraf expressed his delight with the collaboration with the Abu Dhabi City Municipality in signing this Agreement, which will streamline transactions and services related to land and real estate on offer to investors and all related parties.

By signing this Agreement, Al Masraf aims to provide mortgage escrow accounts, financial solutions and associated services to its customers and developers, which contributes to maintaining the interests of investors & developers; which will boost the confidence in real estate operations, and contributes to supporting the urban boom taking place in the United Arab Emirates.

IN-FOCUS

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IN-FOCUS

In line with its strategy to attract and empower Emirati talents and support employment policies in the UAE, the Arab Bank for Investment and Foreign Trade, “Al Masraf”, announced participating in the “Tawdheef 2017” Exhibition which will be held under the patronage of His Excellency Sheikh Nahyan Mubarak Al Nahyan, Minister of Culture and knowledge Development, on January 30th to February 1st, at the Abu Dhabi National Exhibition Centre. The bank aims at attracting national cadre through his participation.

“The nationalization of jobs is a key focus of our strategy in Al Masraf, so we effectively participate in most job fairs in the UAE.” Said Suaad Al Shimmari, head of HR at Al Masraf.

The main component of this strategy is to enhance the ratio of nationals among our staff, where we seek to attract young national talents of graduates who are interested in building a bright and successful career in the banking sector. “Tawdheef 2017 exhibition is an ideal platform to discover the young national talents and to meet with fresh graduates, train them on the type of skills needed in the banking business, and inform them of the job opportunities available at our bank. We pursue the Emirati skills who will surely add great value to our team.” She added. Suaad Al Shimmari

Al Shimmari explained that in its efforts to rehabilitate national cadres, Al Masraf launched “Tamkeen” initiative, which aims at developing the capabilities of national cadres and prepare them for top executive positions in the bank.

“The ratio of national employees in the bank increased to 32% in 2016. We aim to increase it up to 35% by the end of this year. Last year, we also managed to nationalize all the branches of the bank by 100%.” Al Shimmari said.

AIMING TO ATTRACT NATIONAL TALENTS AL MASRAF PARTICIPATED IN THE “TAWDHEEF 2017” EXHIBITION

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IN-FOCUS

In line with its “knowledge sharing” scheme, The Arab Bank for Investment and Foreign Trade (Al Masraf) held a seminar for its customers and strategic partners to discuss the latest key changes to the regulatory and legal framework, focusing specifically on the recently approved bankruptcy law, mortgage of movables and land grants.

The seminar was held at the bank’s headquarters in Abu Dhabi, in cooperation with Eversheds Sutherland and Al Nakhi Advocates & Legal Consultants.

During the seminar, the speakers reviewed the recent bankruptcy law as an important addition to the UAE’s legislative system and business environment. The new rules and regulations will support sustained economic growth, boost the national economy’s progress to international levels, encourage more foreign investment and stimulate banks to finance small and medium-sized enterprises. The speakers also discussed the legislative and legal frameworks related to the mortgage of movables and land grants law.

Mr. Razi Heyasat, Head-Legal Department and Board Secretary, Al Masraf said: “We are pleased with our customers’ zealous response to attend the seminar”, he added. “We look forward through these special events, to provide our customers and partners with the latest economic and legal developments. We are keen on helping them make sound decisions by enhancing their legal awareness about the various developments in the banking and economic sectors. That, for sure, will help them in running their own business.”

Mr. Razi emphasized the plans of Al Masraf to host such seminars on a regular basis noting that the bank will invite senior experts and specialists in various areas of banking to address participants.

AL MASRAF HOLDS KNOWLEDGE SHARING SEMINAR FOR CLIENTS AND SENIOR STAFF. UPDATING THEM ABOUT THE LATEST CHANGES IN BANKRUPTCY LAWS IN THE UAE

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IN-FOCUS

His Excellency Sheikh Nahyan bin Mubarak Al Nahyan, Minister of Culture and Community Development, opened the ABC private school in Abu Dhabi in the presence of Mr. Faisal Galadari, Chief Executive Officer of Al Masraf, Mr. Saeed Mohammed Khalaf Al Mazrouei, Chairman of Al Ma-ria United Group.

Following the opening, the CEO, Mr. Faisal Galadari, toured the school corridors to learn about the modern classrooms and teaching laboratories. He expressed his admiration for the level of coordination and integration between all departments.

Mr. Saeed Mohammed Khalaf Al Mazrouei said that Al Maria United Group consider Al Masraf a strategic partner in the success of its business.

Al Masraf‘s participation in the opening ceremony is an expression of the good relationship between Al Masraf and the United Maria Group.

AL MASRAF PARTICIPATES IN THE OPENING CEREMONY OF ABC PRIVATE SCHOOL IN ABU DHABI

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VALUE ADDED TAX (VAT) & SELECTIVE TAXBy: Mohammad Ashour Head of Audit

The Origin of VAT

A tax that has been the result of the progress of tax knowledges and techniques for half a century since its inception by the French economist Maurice Lorett, who laid down his basic rules in 1953, where many believed it was better than the established fixed Sales Tax laws.

What is VAT?

VAT is an indirect tax. This tax may sometimes be referred to as a type of depreciation tax. In countries with a value added tax system, most goods and services procured and sold are charged. Therefore, in terms of tax, value added represents the difference between the price of selling the item or the service allowance and the purchase price of internal materials and services in production and marketing:

VAT Sales Tax

They are imposed on goods and services during various stages of the supply chain, including the final selling stage. VAT is also levied on the import of goods and services to ensure that equal opportunities are maintained for local suppliers who trade in the same goods and services.

In many countries sales tax is imposed on commodity-related transactions only. This tax is also imposed on the final selling stage of the consumer only.

Value Added = Selling Price - The cost of purchasing or the cost of production

VAT is one of the most common consumption taxes around the world. More than 150 countries apply VAT (or GST), including all 29 EU member states, as well as Canada, New Zealand, Australia, Singapore and Malaysia.

This tax is collected at each stage of the economic cycle (production, distribution, consumption) and also imposed at importation (where customs duty is charged plus the customs fees charges), and so on until they reach the final consumer. Or service delivered to him.

Value Added Tax (VAT) it is the combined tax on public expenditure on consumption, which is levied on all domestic and imported goods and services.

The added tax shall be as follows:

● Non-accumulative tax paid in installments at each stage of the economic cycle: This is one of the most important features of this tax, which is not cumulative as the VAT on the sale price is deducted from the value of the tax paid, until the last stage when consumption of the commodity.

● Non-duplicative tax: The basic principle of this tax is to exempt the export process from the value-added tax and subject import operations to it.

Many countries prefer VAT on sales tax for several reasons, most important of which is the introduction of VAT as a more sophisticated method of taxation, where businesses collect taxes for the benefit of the government, which contributes to reducing the cases of wrong authorization and tax evasion.

Note: In the first phase of the implementation of this tax, there will be a temporary double taxation, with respect to imports, and this duplication will create a clear tax accumulation.

IN-FOCUS

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Why VAT will be applied?

The Government provides various public services to its citizens and residents - including hospitals, roads, public schools, parks, waste management and police services. All of these services are covered by government budgets. Thus,

● VAT will represent a new source of income for the state, contributing to ensuring the continuity of quality government services in the future.

● This source of income will help the Government move forward with its vision of reducing reliance on oil and other hydrocarbon products as key sources of revenue.

Date and percentage of VAT appliedThe UAE VAT date is likely to start on January 1, 2018 and is expected to be applied at a low rate of about 5%.

The impact of VAT on the cost of livingThe cost of living is expected to rise slightly, but this increase will vary depending on individual lifestyle and behavior. If the expenditure of the individual is mostly on goods exempted from value added tax, for example, there will be no significant increase in the cost of living and vice versa.

Collection of VATAs the VAT is a fee added to most goods and services, the government will collect this tax from the seller / companies, which in turn will collect it from consumers. In other words, the companies will pay the added value tax to the government based on the purchase price which in turn will collect this tax from consumers through the sale price services and goods.

Registration for Tax PurposesIt is expected that registration will be made for the purposes of the added tax for the companies subject to three months before the application in the month of October 2017. It has been clarified that:

● Companies whose revenues are subject to tax of more than AED 375,000 or equivalent ($100,000) must register for the purposes of the VAT. This source of income will help the Government move forward with its vision of reducing reliance on oil and other hydrocarbon products as key sources of revenue.

● Companies with revenues of more than AED 187,500 (equivalent to $50,000- $100,000) and less than the required limit above have the right to choose to register (but not mandatory) for the purpose of the VAT.

● Less than the limits up is NOT required for registration purposes.

Tax Impact on the Banking SectorThe Ministry of Finance said that the services and fees charged by banks from their customers will be subject to VAT, in principle, but other banking activities are still the subject under discussion. The experts pointed out in this area that the VAT will increase

the costs of banks, especially that the impact of the tax will have the most important preparation and processing is done by most departments such as IT, Legal, Personnel, Marketing, Purchasing and Finance.

Banks should ensure the following ● Existing long terms contract which are extending to the

year 2018 need to be revised. ● Bank should be ensured the suppliers are VAT

registered. ● Proper invoicing system and an adequate invoice

control system. ● Staff training and promote staff knowledge particularly

who involve in VAT chain.

However, Banks should prepare themselves for VAT by raising awareness, assessing the impact of the new consumption tax as well as securing resources, planning and analysing projects to protect their margins. VAT is likely to be an irrecoverable cost, negatively affecting margins for the banking sector.

Selective tax is a tax that will be levied on selected goods that pose a risk to human health such as tobacco, soft and energy drinks.

It was pointed out by the Ministry of Finance that the selective tax will be imposed 100% on tobacco and energy drinks, while 50% on soft drinks.

Implementation date of the selective tax.

It was announced that the implementation of selective tax on goods that pose a danger to human health on fourth quarter of the current year.

It is worth mentioning that the Saudis will begin to pay the selective tax (the first tax in their lives) on the 10th of June 2017, i.e. during the current month.

SELECTIVE TAX

IN-FOCUS

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Mr. Ahmed Alrefaei (COO) was conferred with the CISO 100 2017 award at the Middle East Security Awards, celebrating success of Chief Information Security Officers (CISO‘s), based on information security transformation initiatives completed at Al Masraf.

Congratulations!! to Mr. Ahmed Alrefaei (COO) for winning the CIO 100 2017 award at the annual CIO Symposium and Awards ceremony organized by CPI Group. The award was conferred to him based on IT strategic transformation and digital banking initiatives at Al Masraf.

IN-FOCUS

Al Masraf organized a brainstorming workshop with the participation of operations, information technology employees and branch managers with the aim of gathering ideas and suggestions that could contribute to pushing forward the development journey at the bank.

At this workshop, opinions were provided and suggestions were made about work mechanisms, the way current initiatives can be developed and promoted to higher levels. The aim of doing that is to achieve the aspired results and strategic plan of Al Masraf.

Al Masraf organizes a brainstorming workshop

Al Masraf has launched its new website that has been designed to provide a better customer service and enhance banking experience of all customers, which can be viewed as a new achievement of the new strategy that is aimed at enriching the digital banking experience of our customers. Commenting on the new website Mr. Bachar Dib, Marketing Manager, has stated that “we are delighted to announce that our new website has been launched. This website is characterized by modern designs that reflect its core value and convenience in a manner that could provide customers with a better banking experience and a more responsive one as well.”

He continued: “To cope with growing use of digital technology, the website is completely in compliance with all systems and devices whether they are the office computers or laptops, tablets or smart phones.” Moreover, he has also pointed out that Al Masraf is so keen on adding flexibility and convenience to the experience of customers interested in accessing the bank services and products quickly. In addition, he has also stated that this website has been designed to enhance the bank’s relation with customers and provide them with all banking information they seek. Above all, he has also added that, “therefore, I call upon all our valued customers to visit our website and provide us with their opinions and comments about it so that we can develop the same in such a manner that could fit their needs”.

AL MASRAF LAUNCHES ITS NEW WEBSITE

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PHOTOS TALK

Recognition ceremony for Al Masraf tellers in Dubai 16th March 2017

Launch of Ebtikar

Recognition ceremony for Al Masraf tellers in Abu Dhabi 16th February 2017

Al Masraf is pleased to launch “Ebtikar” Staff Suggestion Scheme. As the name suggests it means innovation. Al Masraf in line with its transformation strategy launched Ebtikar to drive continual improvement & recognize and reward employees for their creativity & innovation contributions.

Suggestions received through this channel are used as valuable tool to improve range of banking services matching the needs and expectations of our customers, Cost Optimization, whole new experience of Customer Services increasing overall Customer Satisfaction.

This initiative will also help in strengthening the innovation culture at Al Masraf, thereby aligning with UAE’s strategy of becoming globally competitive by using innovation for excellence.

Branch Employee Name Branch Employee Name

Khaldiya-Abu DhabiJumeirahDeira-DubaiMarina-DubaiMain Branch-Abu DhabiDeira-DubaiAl AinAl AinAl Ain

Jamal Fouad NaserJannat AlHashimiHessa Al SabtMasooma Al BalooshiMohammed AbeedMohd SalahuddinRowena JosolSaeed Al ShebliAmna Thany

Main Branch-Abu DhabiSharjahKhaldiya-Abu DhabiMain Branch-Abu DhabiJumeirahRas Al KhaimahSharjahAl Qusais-DubaiDeira-DubaiAl Souq-Abu Dhabi

Arwa MohammedIbrahim Al ZarooniKarayil HasifMatar Al DarmakiAmal Al ShamsiMaryam KadhemRola AliAmna AlbalooshiRoudha BilalNawal AlHammadi

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PHOTOS TALK

AL QUSAIS BRANCH CELEBRATES “HAG AL LAILA”

Al Qusais Branch has celebrated “Hag Al Laila” that falls on the 15th day of the month of Sha’aban by distributing traditional sweets allocated for this occasion to the branch employees and customers. On such a happy occasion, Ms. Kawakib Al Amsawi, Branch Manager, Al Qusais, said that celebrating “Hag Al Laila” is based on our desire in contributing to enhancing the national identity through reviving social occasions, maintaining local customs and traditions of the UAE.

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Union Coop Al Twar

Carrefour Market DSO

Tas-Heel SZR Dubai

Al Safeer Mall Abu Dhabi

Mira Town Center Dubai

ATM Name Location

AL MASRAF REINFORCES THE AUTOMATED TELLER MACHINES (ATMS) As part of its efforts to expand its presence across the UAE, Al Masraf has installed new ATMs to ease customers transactions. Therefore, the total number of ATMs has increased to 25 that are distributed at the various branches of the bank, prime areas of the country and shopping malls as well. On this occasion, Mr. Imran Bashir, Head of Distribution and Marketing has stated, “Launching more ATMs in the residential areas and shopping malls takes place within the framework of the banks strategic approach that are aimed at strengthening communication with customers by satisfying their needs and ambitions to obtain our banking services easily and conveniently 24/7”.

Al Masraf announced that it will stop sending paper based bank account statements to clients and they are to be replaced with the e-Statements starting August 31st, 2017 in order to reduce using paper and conserve trees and environment and provide a higher level of security for clients. In fact, the two factors of conservation of environment and providing customer comfort are considered to be the main motive behind launching such service. These e-Statements shall be sent via customer email on the last working day of each month, which could allow the customer to access his or her accounts directly at any time they wish.

AL MASRAF REPLACES PAPER BASED STATEMENTS OF ACCOUNT WITH E-STATEMENTS

Union Coop Hyper Market Al Twar, Al Nahda Road, Al Twar, Near Al Bustan Centre, Dubai

Carrefour Market Souq Extra, Near Dubai Silicon Oasis

Tas-Heel Show Room Number 4, Umm Al Sheif, Sheikh Zayed Road, Dubai

Al Safeer Mall, Khalifa City A, Abu Dhabi

Mira Town Center, AL Qudra Road, Dubai

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RAMADAN IN PHOTOS

Ramadan Suhoor - Abu Dhabi

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RAMADAN IN PHOTOS

Ramadan Suhoor - Dubai

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RAMADAN IN PHOTOS

Ramadan Suhoor - Abu Dhabi

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RAMADAN IN PHOTOS

Ramadan Suhoor - Dubai

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PHOTOS TALK

Corporate Banking Team Dinner at Murooj Rotana - Dubai

Al Masraf history wall

Al Masraf contributes for the “For your Sake Somalia” Campaign

Our colleague Roudha Bilal - Dubai Branch is a part of the UAE National Handball Team.

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