arab trade financing program - atfp

ARAB TRADE FINANCING PROGRAMANNUAL REPORT 2013


HeadquartersSeventh Floor, Arab Monetary Fund Building, Corniche Road, Abu Dhabi, United Arab Emirates

P.O. Box 26799, Abu Dhabi, Telephone: (9712) 6316999

Telefax: (9712) 6316793/6316299

Website: www.atfp.org.ae


• Foreword 1

• Board of Directors 3

• ATFP in Brief 5

• Arab Trade Developments 7

• Trade Finance Activity 12

• Other Trade Service Activities 16

• Financial Statements and Auditors’ Report 21

• Shareholders 35

• National Agencies 36 - 41

CONTENTS

1


FOREWORD

The global economy witnessed modest growth in 2013 in light of the continuing recession in the

economies of some developed countries, particularly the Euro zone, and the slowdown in the

pace of economic growth in developing countries. This, was in general, due to weak consumer

spending and tightening of credit extension in the Euro zone, as well as the continuing

uncertainty in the United States and its negative repercussions on the levels of investment and

consumption, which affected aggregate demand and growth. Additionally, the global economy

was impacted by the slight decline in growth rates in the economies of developing countries.

With regard to the economic performance of the Arab states in 2013, the oil exporting countries

continued to achieve positive growth rates due to oil prices remaining at high levels. This resulted

in fiscal surpluses that enabled those countries to apply expansionary policies of supportive

growth. As for Arab countries experiencing political transformation, economic performance

was negatively impacted due to lower revenues particularly from tourism and inflows of foreign

direct investment which resulted in rising levels of unemployment and a slowdown in the pace

of economic growth.

As for the activity of the Program during the year 2013, the trade finance activity continued

growing, whereby the disbursements on lines of credit amounted to US$ 842 million compared

to US$796 million during the year 2012, the outstanding draw-down balance on lines of credit,

amounted to US$608 million as at 2013 year end compared to US$586 million as at prior year

end. The cumulative volume of financing made available by the Arab Trade Financing Program

since inception and up to the end of 2013 exceeded US$10 billion. In line with the important

role that the national agencies play through its geographical distribution, the number of national

agencies reached 204 distributed in 19 Arab countries and 5 non-Arab countries.

In the area of ancillary trade supporting services, ATFP continued to organize seminars in some

Arab countries that aim at familiarizing the Arab trader with its services. This is in addition to

its continued efforts to develop and update the database of the Inter Arab Trade Information

Network, which is available online through its website for the benefit of parties involved in Arab

trade.

As for the financial performance of the Program, the audited financial statements for the year

ended 31 December 2013 show that the total income for the year 2013 amounted to US$15 million

compared with US$12 million for the year ended 2012, distributed between income from lines

of credit of US$7.3 million and the income from investment portfolio of US$7.7 million. With

regards to administrative expenses during 2013, it is noted that expenditure stayed at almost the

same level despite a slight increase amounted to US$ 125 thousand distributed almost equally

over the different expense chapters. Accordingly, the net income for the year 2013 amounted to

US$11.15 million compared to net income of the preceding year amounting to US$8.00 million.

2


The shareholders’ funds increased to about US$1,030 million as at 2013 year end, compared

to almost US$805 million as at the beginning of the year 2013, this happened during 2013 in

accordance with the General Assembly resolution (7/2013) issued on 30 June 2013, whereby

authorized capital was increased to US$1 billion consisting of 200 thousand shares with par

value of US$5,000 per share, which was executed in two steps. The first step was through

capitalization of reserves by distributing 41485 shares in dividends as at 30 June 2013, the second

step was subscription in cash for 60 thousand shares, out of which 43297 shares were subscribed

and fully paid before 2013 year end. thus, the number of shares issued and fully paid reached

183297 as at 31 December 2013, hence the Program paid up capital increased to US$916 million.

In addition to that, pursuant to the Resolution No.3/2013 issued by the General Assembly in its

twenty fourth annual meeting held on 26 March 2013, the remaining Net Income of the year

2012 amounting to US$6,405 thousand was transferred to the General Reserve.

The Program during the year 2014, will continue its quest toward the completion of the capital

increase by keeping the subscriptions open until the issuance of the remaining unissued shares.

Also in light of the increase in resources of funds, the Program will continue developing

its activity for years to come through expanding its credit facilities, and developing new

instruments in the trade finance sector. In addition to continue redeveloping ancillary trade

services that the Program provides through Arab Trade Information Network and promoting

trade exchange through the Arab Buyers Sellers meetings.

Yours faithfully,

Dr. Jassim Al Mannai Chief Executive Chairman of the Board

3


BOARD OF DIRECTORS

Dr. Jassim Al MannaiChief Executive Chairman of the Board

MEMBERS

Mr. Mohammed Saleh AlghofailiAssistant Under Secretary for Int’l Financial Affairs,

Ministry of Finance, Kingdom of Saudi Arabia

Representing

“The Arab Monetary Fund”

Mr. Muneer M. OmranDirector General, Directorate General of Investments,Central Bank of Iraq, Republic of Iraq Representing “The Arab Monetary Fund”

Mr. Abdelati Jabir Elhaj Debuty General,GD for Planning, Studies & Economic Policies,Ministry of Finance and National Economy,Republic of SudanRepresenting “The Arab Monetary Fund”

Dr. Mohamed Lemin ReghaniGeneral Research Director,Central Bank of Mauritania, Islamic Republic of Mauritania Representing “The Arab Monetary Fund”

Mr. Ahmed OthmanDirector, Technical Department,The Arab Fund for Economic & Social DevelopmentRepresenting “The Arab Fund and The Arab Multilateral Organizations”

Mr. Abdul-Hamid M. ZigalaieEconomic Advisor,The Arab Fund for Economic & Social DevelopmentRepresenting “The Arab Fund & The Arab Multilateral Organizations”

Dr. Mohammed LeksacyGovernor,Central Bank Of AlgeriaRepresenting “The Arab Central Banks”

Mr. Houssam Mohamed Saleh KhlaifFirst Vice President, Department of Trade FinanceArab Banking Corporation (BSC)Representing“The Private Financial and Banking Institutions”

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Dr. Jassim Al MannaiChief Executive Chairman of the Board

Mr. Mohammed Saleh Alghofaili

Mr. Abdelati Jabir Elhaj

Mr. Ahmed Othman

Dr. Mohammed Leksacy

Mr. Muneer M. Omran

Dr. Mohamed Lemin Reghani

Mr. Abdul-Hamid M. Zigalaie

Mr. Houssam Mohamed Saleh Khlaif

5


THE ATFP IN BRIEF

Objectives & Means

ATFP aims at promoting and developing trade exchanges of Arab countries, and to enhancing the productivity and competitiveness of Arab producers and exporters. To achieve this end, ATFP seeks to bring together the resources capable of providing the necessary financing for such exchanges at convenient cost and terms. This is performed through various financing tools that include besides the Lines of Credit that are made available to its national agencies, risk sharing with the national agencies in its financing operations, forfaiting, and financing in accordance with the Islamic Sharia. ATFP also seeks to provide exporters and importers in Arab states with information on Arab trade activities, those involved therein, market potentials and opportunities. In addition, ATFP strives to cooperate and coordinate with regional and local institutions of finance and insurance to provide the necessary coverage for such exchanges.

Legal Status

The Arab Trade Financing Program is a joint Arab financial institution which has an independent corporate identity and enjoys full rights, particularly with respect to ownership, contract, litigation, acceptance of deposits, borrowing and fund management.ATFP enjoys privileges and immunities granted to it by the United Arab Emirates, its country of domicile, pursuant to the Protocol of Privileges and Immunities issued as Federal Decree No. 3 of the year 1990.

Resources

The resources of the ATFP consist of its own capital and reserves, funds deposited with it by financial institutions, borrowing from money markets or other sources falling within the guidelines set by the General Assembly, and any other resources approved by the General Assembly.

Shareholders

Shareholders of ATFP are classified into three categories. Category (A) includes the Arab Monetary Fund, joint Arab financial institutions, and Arab governmental institutions of finance and banking. Category (B) encompasses non-governmental financial and banking institutions in the Arab countries, while Category (C) similar institutions albeit of international or joint Arab-foreign financial and banking institution.

Capital

The ATFP authorized capital was increased during the 2013 to become US$1 billion, consisting of 200 thousand shares at a par value of US$5,000 per share. ATFP has a total number of 50 shareholders representing a number of Arab financial organization, Arab Central Banks and Arab and joint Arab Foreign Commercial Banks. The list of the shareholders is lead by the Arab Monetary Fund and the Arab Fund for Economic & Social Development whereby each hold 111274 shares and 31156 shares respectively.

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Organizational Structure

ATFP’s organizational structure consists of a General Assembly which encompasses shareholders of all categories, a Board of Directors, and an Executive organizational structure which is headed by the Chief Executive & Chairman of the Board of Directors. The Executive Structure is comprised of three departments: - The Trade Development and Promotion Department, The Credit and Trade Finance Operations Department; and The Finance & Administration Department.

Program Characteristics

ATFP’s nature of establishment, shareholding and activities, its characteristics and attributes,

distinguish it from other sources of trade financing, in the following:

• Among joint Arab institutions specializing in trade financing, ATFP was the first to aim, as an objective, to contribute to the development of Arab trade and to the enhancing the Arab exporter’s competitive advantage.

• ATFP extends financing to all exporters and importers of Arab commodities, and seeks to contribute to the generation of new opportunities for trade exchanges in Arab commodities. Also, ATFP provides financing for capital goods of non-Arab origin that are necessary for the production activity in the Arab countries.

• ATFP provides financing for Arab trade at competitive pricing convenient terms.

• As a specialized Arab institution, ATFP is in a better position to coordinate and cooperate with regional and local institutions of finance and insurance on matters related to providing financing and insurance coverage for trade transactions at reasonable conditions.

• ATFP seeks to enhance the capabilities of the commercial banks engaged in providing financing for Arab trade

• ATFP enjoys a broad shareholder base including joint Arab financial institutions as well as Arab banking institutions of governmental, private and joint nature. Such base allows the establishment of a comprehensive framework within which resources can be pooled with the ultimate objective of helping develop trade in Arab commodities.

• In addition to financing, ATFP provides a package of other services related to development of foreign trade. These include the provision of relevant and reliable trade information on Arab markets, the coordination of available trade opportunities, and the promotion of trade in the form of pan Arab buyers/sellers meetings.

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ARAB TRADE DEVELOPMENTS

According to the Joint Arab Economic Report of 2013, Arab foreign trade witnessed growth in 2012. Arab exports recorded an increase due to international prices of oil remaining at high levels. Arab imports also increased due to the surge in government spending in the Arab oil exporting countries in addition to the increase in oil prices for the Arab oil importing countries.

Arab Countries Foreign Trade:

Arab exports recorded a growth in 2012 affected by the surge in international oil prices. Total exports amounted to US$ 1310.5 billion compared to US$ 1205.6 billion in 2011, an increase of 8.7%. Thus Arab exports as a share of global exports increased to 7.2% from 6.6% in 2011.

Schedule No. 1

Total Arab Foreign Trade

2008 – 2012

US$ (billion) Annual Change %

Average Change

during the period

2008-2012

2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 (%)

Arab Exports 1,076.5 734.8 915.0 1,205.6 1,310.5 35.2 -31.7 24.5 31.8 8.7 3.9

Arab Imports 669.6 607.5 661.2 756.7 816.1 25.0 -09.3 8.8 14.5 7.9 4.2

Global Exports 16,132.0 12,531.0 15,254.0 18,291.0 18,323.0 15.1 -22.3 21.7 19.9 0.2 4.3

Global Imports 16,536.0 12,733.0 15,457.0 18,487.0 18,567.0 15.5 -23.0 21.4 19.6 0.4 3.8

Ratio of Arab to Global Exports (%)

6.7 5.9 6.0 6.6 7.2

Ratio of Arab to Global Imports (%)

4.0 4.8 4.3 4.1 4.4

Source: Joint Arab Economic Report 2013

As for the export performance at the country level, indicators for 2012 show an increase in the value of exports in the countries where crude oil constitutes the main export commodity excluding Algeria. Libya recorded the highest increase exceeding 240% followed by Iraq at 18.2%, Kuwait at 15.9% and Oman at 10.6%. The increase in exports of Qatar, UAE and Saudi Arabia recorded 7.9%, 6.6% and 5.3% respectively, while exports of Algeria dropped by 1.7%.

Among the non-oil exporting countries, Somalia recorded an increase of 14.7% followed by Yemen at 6.9%, Morocco at 5.8% and Lebanon at 5.1%, while the exports of Egypt dropped by 8.2%, Tunisia by 4.6% and Jordan by 1.2%. The value of exports in Syria and Sudan recorded a significant drop of 62.2% and 40.6% respectively, while exports of Djibouti dropped by 7.1% and Mauritania by 4.1%.

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Total imports of Arab countries during 2012 recorded an increase of 7.9%. Thus Arab imports amounted to US$816.1 billion compared to US$756.7 billion in 2011. Accordingly, the share of Arab imports in global imports slightly increased to 4.4% in 2012 compared to 4.1% in 2011.

At the country level, indicators reflect an increase in imports of most Arab countries. 17 Arab countries recorded an increase in their imports ranging between 135.6% in Libya and 1.9% in Kuwait. Meantime, the decline in imports of Syria, Djibouti, Algeria and Sudan ranged between 61.4% for Syria and 1.4% for Sudan.

Geographical Distribution of Arab Trade

While Arab exports to all trading partners have increased in 2012, trade statistics reflect a change in the main trading partners’ shares. The share of the European Union in total Arab exports increased from 12.6% in 2011 to 13.5% in 2012. Likewise, the share of Japan in Arab exports increased from 9.4% to 10.5% while the share of the United States and China increased slightly to 8.1% and 8.6% respectively in 2012.

Arab Trading Partners in 2012


As for the direction of Arab imports, the share of Arab imports from the European Union in total Arab imports reached 26.5% in 2012. Likewise, the share of the United States in Arab imports reached 8.7%, while the share of China and Japan reached 12.7% and 3.9% respectively.

Arab Exports (%) Arab Imports (%)

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Commodity Structure of Arab Foreign Trade

Statistics relating to the commodity structure of Arab exports indicate that fuel and minerals continue to comprise the largest item of Arab exports amounting to 76.5% of total exports in 2012 due to the increase in oil exports. Conversely, manufactured products decreased from 18% to 15.9% of total Arab exports. Within the manufactured products category, chemical products, basic industries and machinery & transport equipment represented a share of 6%, 3.8% and 3.1% respectively. Meanwhile, agricultural products’ share of total Arab exports increased to 4.9% in 2012 compared to 3.7% in 2011.

On the import side, manufactured products topped the list amounting to 62.8% of total Arab imports in 2012. Within this category, machinery & transport equipment represented 29.3% followed by basic industries at 16.5% and chemical products at 9.8%. Agricultural products ranked second in Arab imports with a share of 19.9%, followed by fuel and minerals at 16.1%.

Commodity Structure of Arab Foreign Trade in 2012


Inter-Arab Trade

The average value of inter-Arab trade in 2012 recorded an increase of 6.1% and reached US$111.7 billion compared to US$105.2 billion in 2011. The value of inter-Arab exports increased by 5.4% and reached US$114.2 billion, while the value of inter-Arab imports increased by 7% and recorded US$109.2 billion in 2012.

Fuel & minerals

76.5

Unclassified2.7

Unclassified1.2

Agriproducts

4.9

Chemical products 9.8

Basic industries 16.5

Machinery &Transport

products 29.3

Chemical products

6.0

Basic industries

3.8


products 3.1

Otherindustries 3.0

Otherindustries 7.2

Manufacturedproducts

15.9Manufactured

products62.8

Agriproducts

19.9

Fuel & minerals

16.1

Commodity Structure of Arab Exports Commodity Structure of Arab Imports

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Schedule No. 2Value and Growth of Inter-Arab Trade

2008 – 2012

Value (US$ billion) Annual Change (%)

AverageChangeduring

the period2008-2012

2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 %

Inter-Arab Trade (1) 95.5 80.2 91.1 105.2 111.7 41.4 -15.9 13.5 15.5 6.1 3.3

Inter-Arab Exports (FOB) 100.3 87.0 98.6 108.3 114.2 42.7 -13.3 13.3 9.9 5.4 2.6

Inter-Arab Imports (CIF) 90.7 73.5 83.5 102.1 109.2 40.1 -18.9 13.6 22.2 7.0 4.0

(1) (Inter-Arab Exports + Inter-Arab Imports) ÷2. Source: Joint Arab Economic Report 2013

As for the share of inter-Arab trade in total Arab trade, it was affected by the rate of growth of inter-Arab exports in 2011 falling short of the rate of growth of total Arab exports as international prices of oil remained at high levels. This has caused inter-Arab exports as a share of the total Arab exports to decrease from 9% in 2011 to 8.7% in 2012. Likewise, the rate of growth of inter-Arab imports in 2012 fell short of the rate of growth of total Arab imports, and inter-Arab imports as a share of the total Arab imports decreased from 13.5% in 2011 to 13.4% in 2012.

Schedule No. 3Share of Inter-Arab Trade in Total Arab Trade (%)

2008 – 2012

2008 2009 2010 2011 2012

Ratio of Inter-Arab Exports to Total Arab Exports 9.3 11.8 10.8 9.0 8.7

Ratio of Inter-Arab Imports to Total Arab Imports 13.5 12.1 12.6 13.5 13.4


As for the performance at the country level, indicators show that 18 Arab countries recorded an increase in their inter-Arab exports in 2012. Libya recorded the highest increase in inter-Arab exports amounting to 85%, followed by Morocco at 45.9%, Mauritania at 37.5%, Kuwait at 30.1%, Qatar at 28.7%, and Algeria at 24.7%. Concurrently, the increase of inter-Arab exports for Oman, UAE and Iraq recorded 5.1%, 6.7% and 10.4% respectively, whereas Bahrain and Saudi Arabia recorded an increase of 3.8% each. Conversely, The Inter-Arab exports of Syria, Yemen and Djibouti dropped by 61.8%, 57.1% and 7.1% respectively.

As for inter-Arab imports, 13 Arab countries recorded an increases ranging between 230.8% for Mauritania and 3.5% for Bahrain, while inter-Arab imports of Yemen dropped by 46.3%, followed by Syria at 20.7%, Algeria at 10.2%, Iraq at 9.4% , Morocco at 6% , Lebanon at 5.5 % and Djibouti at 4.8%.

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Geographical Distribution of Inter-Arab Trade

It is evident that inter-Arab trade continues to be mostly concentrated in dealings between neighboring Arab countries. Thus, in 2011, the bulk of inter-Arab exports of Jordan were directed towards Iraq and Saudi Arabia with a share of 31.1% and 22.7% respectively. The inter- Arab exports of Tunisia were directed towards Libya with a share of 45.5% and Algeria with a share of 26.7%. On the other hand, Saudi Arabia, Egypt and Morocco were able to increase the geographical distribution of their inter-Arab exports to several Arab countries.

On the import side, statistics confirm that the geographical location of a country plays a major role in determining its inter-Arab trade partners. Therefore, the larger part of inter- Arab imports of Jordan were from Saudi Arabia with a share of 66%, while 81% of Bahrain’s inter-Arab imports were from Saudi Arabia and 60% of Tunisia’s inter-Arab imports were from Libya and Algeria. In this respect, Lebanon and Algeria are considered to be the most diversified importers among Arab countries.

Commodity Structure of Inter-Arab Trade

Statistics relating to commodity structure of inter-Arab trade show that manufactured products topped the list of inter-Arab exports at 47.3% in 2012, followed by fuel and minerals with a share of 27.1% and agricultural products at 18.9%. Within the manufactured products category, basic industries, chemical products, and machinery & transport equipment recorded a share of 18.1%, 12% and 10% respectively.

Commodity Structure of Inter-Arab Trade in 2012


On the import side, manufactured products likewise topped the list with a share of 44.1% of inter-Arab imports followed by fuel and minerals at 35.3% and agricultural products at 15.7%.

Fuel & minerals

27.1

Unclassified6.7

Unclassified4.9

Agriproducts

18.9

Chemical products 13.6

Basic industries 17.40


products 10.0

Chemical products

12.0

Basic industries

18.1


products 10.0

Otherindustries 7.2

Otherindustries 4.9


47.3


44.1

Agriproducts

15.7

Fuel & minerals

35.3

Commodity Structure of Arab Exports Commodity Structure of Arab Imports

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TRADE FINANCE ACTIVITY

Summary of Financing Activities

During 2013, Arab Trade Financing Program (ATFP) received applications from its National Agencies in Arab countries amounting to US$845 million, compared to US$790 million at the end of 2012. Meanwhile, disbursements against lines of credit amounted to US$842 million, compared to US$796 million at the end of 2012. As at 31/12/2013, the outstanding balance of credit extended to National Agencies was US$608 million compared to US$586 million at year end 2012.

Thirty two lines of credit agreements totaling US$828 million were also signed during 2013, compared to twenty nine lines of credit agreements totaling US$870 million signed during 2012.

Year

ApprovedRepaidOutstanding Disbursed

Annual Trade Finance Activity(1990 - 2013)

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Agreements signed with ATFP National Agencies in 2013:

• The Kingdom of Morocco: Ministry of Economy & Finance, Attijariwafa Bank, Banque Marocaine du Commerce Exterieur

• The Hashemite Kingdom of Jordan: The Housing Bank for Trade and Finance, Capital Bank of Jordan

• United Arab Emirates: Union National Bank, National Bank of Fujairah, Commercial Bank of Dubai, Al-Ahli Bank of Kuwait K.S.C. – Dubai Branch

• State of Qatar: Al Ahli Bank Q.S.C.

• Republic of Lebanon: Banque Libano-Francaise S.A.L., BankMed S.A.L., BLC Bank S.A.L., Fransabank S.A.L., Byblos Bank S.A.L., Credit Libanais S.A.L., Bank of Beirut S.A.L., Bank of Beirut & the Arab Countries S.A.L., BLOM Bank S.A.L.

• Arab Republic of Egypt: Central Bank of Egypt, Arab International Bank, Export Development Bank of Egypt, National Bank of Egypt, Commercial International Bank- Egypt

• Kingdom of Bahrain: Al-Ahli United Bank, Al-Baraka Islamic Bank- Bahrain

• Republic of Tunisia: Central Bank of Tunis

• France : Union de Banques Arabes et Francaises (U.B.A.F.)

• State of Kuwait: Al-Ahli Bank of Kuwait K.S.C., Gulf Bank

• Sultanate of Oman: Bank Muscat (S.A.O.G.)

• Republic of Sudan: United Capital Bank

Year

Drowdowns From Lines of Credit

(1990 - 2013)

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Trade transactions financed by ATFP included a varied range of commodities and products, but mainly covered:

• Consumer Goods:

Petroleum products, foodstuffs, chocolates & accessories, sesame seeds, books, clothes, medicines, medical products, pesticides, sanitary products, batteries, home appliances, furniture, cotton products and paper products;

• Intermediary Goods: Petrochemical products, aluminium, iron and steel products, chemical products, copper bars,

cables, electrical wires, ceramic tiles, pipes, building material, wrapping & packaging material, glass boards, carton boards, glass bottles, sulfur, ravemul and paints;

• Raw Material: Cotton, phosphate, fertilizers, bitumen and crude oil;

• Capital Goods: Industrial machinery and electrical transformers.

Financing Activity periodic Development

(1990 - 2013)

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Cumulative Financing

With regard to the cumulative financing figures since commencement of operations in 1991 up to year end 2013, ATFP processed applications totaling US$10,970 million for eligible trade transactions totaling US$14,119 million, and approved transactions amounting to US$10,544 million. ATFP signed (651) lines of credit agreements for a total value of US$10,523 million, and disbursed US$10,039 million - out of which US$9,431 million had been settled.

National AgenciesDuring 2013, ATFP approved the nomination of four new National Agencies, namely:

• United Arab Emirates: National Bank of Kuwait S.A.K. - Dubai Branch

• Republic of Lebanon: Emirates Lebanon Bank S.A.L.

• Republic of Iraq: National Bank of Iraq

• Republic of Yemen: Cooperative and Agricultural Credit Bank

These new nominations bring the total number of ATFP National Agencies, as at the end of 2013, to 204 National Agencies in nineteen Arab countries and five non-Arab countries.

Year

Appointed National Agencies

(1990 - 2013)

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OTHER TRADE SERVICE ACTIVITIES

On inception, ATFP set up the Intra Arab Trade Information Network (IATIN) with the objective of providing reliable online information on Arab trade to all parties involved in the market. ATFP completed the process of linking the central core of the IATIN headquarters to 30 focal points covering all Arab countries (except Somalia & Iraq) thereby securing delivery of the network’s services to the widest possible range of business communities in the Arab region. IATIN provides a wide array of services to Arab traders including country markets profiles, key contacts of companies engaged in commerce, as well as available trade opportunities at the Arab regional level, in addition to other information relating to Arab trade. The services of IATIN are made available through ATFP’s web site at www.atfp.org.ae as well as through conventional telecommunication facilities including telephone, e-mail and ordinary mail. ATFP continues to maintain and upgrade IATIN as an updated online Arab market directory for the benefit of those involved in trading activities in the Arab region. ATFP has also been active in organizing and executing trade promotional activities including buyers/sellers meetings in sectors that demonstrate a potential for trade growth. The meetings are based on a process of matchmaking of exporters and importers dealing in the same products where possibilities of trade exchange, investment, and regional marketing alliances are discussed. The meetings also help informing participants of ATFP’s financing capabilities, and the credit facilities made available through its National Agencies. Based on statistical trade flow analysis, a number of key sectors with a potential for trade growth in the Arab countries have been identified as the focus of ATFP’s buyers/sellers meetings. These sectors include textiles, food industries, metal industries, pharmaceuticals, chemicals & petrochemicals, building materials, furniture, plastic

industries and agricultural inputs.

Inter-Arab Trade Information Network

The Arab Trade Financing Program (ATFP) continued in 2013 its efforts to update and enhance the database of the Intra-Arab Trade Information Network (IATIN) provided online through its web site on the Internet. In this connection, ATFP updated the contact details of 1690 companies engaged in manufacturing, importing and exporting activities in Egypt, Saudi Arabia, Palestine, UAE, Morocco Jordan, Tunisia and Algeria. During the year, ATFP also added 950 trade leads in the Arab Business Opportunities database for access by potential interested trading partners. Moreover, ATFP uploaded its website with the updated versions of the Market Profile of Morocco, Jordan, Bahrain, Kuwait and Oman in cooperation with the appointed focal points in those countries.

As for Arab foreign trade statistics, ATFP’s website was updated with the statistical data published by the Arab Monetary Fund (AMF) and the International Trade Centre (ITC), thus expanding the available statistical database to cover the period 2008 – 2012.

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Trade Promotion

During 2013, ATFP carried out several activities that aimed at familiarizing the Arab trader with its services. In this connection, ATFP participated in several workshops and seminars held in Arab states in cooperation with regional and international institutions engaged in trade finance and trade promotion, with an objective to contribute to the development of Arab trade.

Within this context, ATFP participated in the Arab Private Sector Preparatory Forum for the 3rd session of the Arab economic and social development summit which took place in Riyadh-Saudi Arabia and organized by Council of Saudi Chambers, League of Arab states and the General Union of Chambers of Commerce, Industry and Agriculture for Arab countries. The interposition of ATFP in the forum was titled “The Experience of ATFP in Arab Trade Development”. ATFP also cooperated with the Arab Authority for Agricultural Investment and Development – AAAID and participated in the 2nd Arab Forum for Agricultural and Food Investment that was held in Tunisia. This forum was attended by representatives from Arab public sector institutions, Union of Food Products Syndicates; centers for agricultural studies; experts in land reclamation, and aquatic and fish implantation, in addition to the General Secretariat of the Cooperation Council for the Arab states of the Gulf. The interposition of ATFP in the forum was titled “The reality of Intra-Arab trade and ways of development”.

ATFP also participated in the 7th Coordination Group Meeting to enhance and promote cooperation in field of trade finance and insurance which was attended by eight Arab institutions and hosted by the Arab Bank for Economic Development in Africa (BADEA) in Khartoum – Sudan. ATFP also joined the Experts and the 2nd Ministerial Meeting of the Arab-African joint agricultural development and food security that was held in Riyadh, Saudi Arabia, and participated in Amman, Jordan in the 2nd Euro Arab Economic forum which was organized by the General Union of Chambers of Commerce, Industry and Agriculture for Arab countries in cooperation with the European Investment Bank; the European Commission, the Jordan Chamber of Commerce and the Jordan Chamber of Industry.

In its endeavors to familiarize Arab traders with its services, ATFP organized in 2013 seminars, in Amman, Jordan in cooperation with the Jordan Economic Development Corporation and in Riyadh, Saudi Arabia in cooperation with Riyadh Chamber of Commerce & Industry. Those seminars were attended by representatives from economic and financial institutions, ATFP National Agencies, and businessmen involved in various trading and industrial sectors in the two countries.

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During February 2013, ATFP organized in Abu Dhabi - UAE the 7th Consultative Meeting for ATFP National Agencies. The meeting was attended by representatives from National Agencies, and aimed at enhancing the utilization of ATFP facilities and services available to Arab trade. The meeting was an opportunity to exchange views on ATFP’s financing services and the role of the National Agencies in introducing ATFP services to their clients networks and the increased demand on its facilities. During the event, a representative from the European Bank for Reconstruction & Development (EBRD) - Trade Facilitation Program presented EBRD’s activities in Arab countries in its Southern and Eastern Mediterranean area of operation (SEMED), and the guarantee mechanism used by the Bank, objective of which ATFP plans to include in its activities.

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• Independent Auditor’s Report 21

• Statement of Financial Position 22

• Income Statement 23

• Statements of Comprehensive Income &

Changes in Shareholders’ Equity 24

• Statement of Cash Flows 25

• Notes to the Financial Statements 26 - 34

FINANCIAL STATEMENTS & AUDITOR’S REPORT

35


SHAREHOLDERS

Arab Monetary Fund Abu DhabiArab Fund for Economic and Social Development KuwaitBanque d' Algerie AlgiersArab Banking Corporation (BSC) ManamaCentral Bank of Libya TripoliCentral Bank of Egypt (On behalf of Egyptian banks) CairoGulf International Bank ManamaArab Authority for Agricultural Investment and Development KhartoumThe Arab Investment Company RiyadhCentral Bank of Yemen Sana’aThe Inter-Arab Investment Guarantee Corporation KuwaitCommercial Bank of Syria DamascusBanque Centrale de Tunisie TunisBank Almaghrib RabatLibyan Foreign Bank TripoliEl Nilein Bank Group for Industrial Development KhartoumBanque de L'Agriculture et du Development Rural AlgiersBanque Nationale d'Algerie AlgiersBanque Exterieure d'Algerie AlgiersCredit Populaire d'Algerie AlgiersBanque de Developpment Local AlgiersRasheed Bank BaghdadRafidain Bank BaghdadRiyad Bank RiyadhUnion National Bank Abu DhabiArab International Bank CairoJordan Dubai Islamic Bank AmmanSamba Financial Group RiyadhTunis International Bank TunisArab Bank Limited (Abu Dhabi Branch) Abu DhabiNational Commercial Bank JeddahAl Ahli Bank of Kuwait KSC KuwaitBanque Marocaine du Commerce Exterieur CasablancaCommercial Bank of Kuwait KuwaitNational Bank of Kuwait KuwaitAl Ahli United Bank ManamaArab African International Bank CairoBanque Centrale Populaire CasablancaEmirates National Bank of Dubai DubaiByblos Bank S.A.L. BeirutCredit Libanaise S.A.L. BeirutArab Investment Bank CairoQatar National Bank DohaBank of Beirut BeirutFransabank BeirutBanque Audi BeirutCapital Bank of Jordan AmmanBanque Libanese pour le Commerce BeirutBanque Libano-Francaise S.A.L. BeirutUnion de Banques Arabes et Françaises (UBAF) Paris - France

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NATIONAL AGENCIES

JORDAN Jordan Dubai Islamic Bank.

Arab Bank P.L.C.

Arab Banking Corporation (Jordan)

Central Bank of Jordan

The Housing Bank for Trade & Finance

Bank of Jordan

Capital Bank of Jordan

Investbank

Jordan Ahli Bank

Jordan Kuwait Bank

Egyptian Arab Land Bank

Jordan Commercial Bank

Cairo Amman Bank

Ministry of Finance

U.A.E. Emirates Industrial Bank

Emirates NBD Bank

First Gulf Bank

El-Nilein Bank – Abu Dhabi

Banque Misr (Gulf Branches Regional Office)

Mashreq Bank

Union National Bank

Arab Bank – Abu Dhabi

Abu Dhabi Commercial Bank

Citibank – Dubai

Al Ahli Bank of Kuwait KSC - Dubai

National Bank of Abu Dhabi

Abu Dhabi Islamic Bank

National Bank of Fujairah P.S.C.

Bank of Baroda

Bank of Sharjah

Commercial Bank of Dubai

Noor Islamic Bank

Standard Chartered Bank

National Bank of Kuwait S.A.K. - Dubai Branch

BAHRAIN National Bank of Bahrain BSC

Bahrain Development Bank B.S.C.

Arab Banking Corporation (B.S.C.)

The Arab Investment Company (S.A.A.) (Wholesale Bank)

Bank of Bahrain And Kuwait (B.S.C.)

Al-Ahli United Bank (B.S.C.)

Gulf International Bank (B.S.C.)

United Gulf Bank B.S.C.

Al Baraka Banking Group

Bahrain Islamic Bank

ICICI Bank Limited (Bahrain Branch)

Elaf Bank

Al-Baraka Islamic Bank

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TUNISIA Banque Centrale de Tunisie

Societe Tunisienne de Banque

Banque Internationale Arabe de Tunisie

Banque Nationale Agricole

Arab Tunisian Bank

Amen Bank

Attijari Bank

Arab Banking Corporation (Tunisie)

ALGERIA Banque de l’Agriculture et du Developpement Rural

Banque Nationale d’Algerie

Banque Exterieure d’Algerie

Credit Populaire d’Algerie

Banque de Developpement Local

Arab Banking Corporation (Algeria)

SAUDI ARABIA The Saudi Investment Bank

Riyad Bank

The National Commercial Bank

Arab Petroleum Investment Corporation (APICORP)

Bank Al-Jazira

International Islamic Trade Finance Corporation (ITFC)

SUDAN El Nilein Bank

Omdurman National Bank

Animal Resources Bank

Sudanese French Bank

Saving & Social Development Bank

Financial Investment Bank

Workers National Bank

Islamic Co-operative Development Bank

Al Baraka Bank Sudan

Byblos Bank Africa

Arab Authority for Agriculture Investment and Development

United Capital Bank

National Agency for Insurance & Finance of Exports

AL Salam Bank – Sudan

Al Jazeera Sudanese Jordanian Bank

Bank of Khartoum

The Central Bank of Sudan

Al Shamal Islamic Bank

Saudi Sudanese Bank

Arab Sudanese Bank

Export Development Bank

SYRIA Commercial Bank of Syria

International Bank for Trade and Finance

Byblos Bank Syria S.A.

Arab Bank Syria S.A.

Audi Bank – Syria S.A.

NATIONAL AGENCIES

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IRAQ Rafidain Bank

Rasheed Bank

Trade Bank of Iraq

Commercial Bank of Iraq

Kurdistan International Bank for Investment and Development

National Bank of Iraq

OMAN National Bank of Oman (S.A.O.G.)

Oman Development Bank (S.A.O.G.)

Bank Muscat (S.A.O.G.)

Bank Dhofar (S.A.O.G.)

Oman International Bank (S.A.O.G.)

Oman Arab Bank (S.A.O.G.)

Bank Sohar (S.A.O.G.)

Ahli Bank (S.A.O.G.)

QATAR Al Ahli Bank Q.S.C.

The Commercial Bank of Qatar Q.S.C.

Doha Bank Q.S.C.

Qatar Development Bank

Qatar National Bank Q.S.C.

Qatar Islamic Bank

Qatar International Islamic Bank

KUWAIT The Gulf Bank

National Bank of Kuwait

Commercial Bank of Kuwait

Al-Ahli United Bank - Kuwait

Burgan Bank

Al Ahli Bank of Kuwait

Boubyan Bank

Kuwait International Bank

The Arab Investment & Export Credit Guarantee Corporation

NATIONAL AGENCIES

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LEBANON Credit Libanais S.A.L.

Banque du Liban et d’Outre-Mer S.A.L.

Byblos Bank S.A.L.

Fransabank S.A.L.

Bank of Beirut S.A.L.

Banque Libano-Francaise S.A.L.

Banque Audi S.A.L. -Audi Saradar Group

Lebanon & Gulf Bank S.A.L.

First National Bank S.A.L.

Jamal Trust Bank S.A.L.

Syrian Lebanese Commercial Bank S.A.L.

Banque du Liban

Ministry of Finance

IBL Bank S.A.L.

Bank Bemo S.A.L.

Societe Generale de Banque au Liban

Bank of Beirut & the Arab Countries S.A.L.

BLC Bank S.A.L.

Credit Bank S.A.L.

BankMed S.A.L.

Arab Finance House S.A.L.

Lebanese Islamic Bank S.A.L.

Middle East & Africa Bank S.A.L.

Citibank, N.A.- Lebanon

Al-Baraka Bank S.A.L.

Emirates Lebanon Bank S.A.L

LIBYA Libyan Foreign Bank

Bank of Commerce & Development

The Agricultural Bank

Gumhouria Bank

NATIONAL AGENCIES

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EGYPT Export Development Bank of Egypt

Banque Misr

National Bank of Egypt

Bank of Alexandria

Misr Iran Development Bank

Commercial International Bank (Egypt)

Arab Banking Corporation – Egypt

National Societe Generale Bank

Arab Investment Bank

Ahli United Bank (Egypt)

National Bank for Development

Suez Canal Bank

Banque du Caire

Societe Arabe International de Banque

Arab African International Bank

Al Watany Bank of Egypt

Central Bank of Egypt

Egyptian Saudi Finance Bank

Banque Audi S.A.E.

Union National Bank-Egypt

Arab International Bank

MOROCCO Banque Marocaine du Commerce Exterieur

Banque Centrale Populaire

Attijariwafa Bank

Ministry of Economy and Finance

Societe Generale Marocaine de Banques

MAURITANIA Banque Mauritanienne pour le Commerce International

Bank Nationale de Mauritanie

Generale de Banque de Mauritanie (Investment & Commerce)

Banque pour le Commerce et I'Industrie

Banque Al-Wava Mauritanienne Isalamique

Banque Al Amana pour le Developpement et le Logement

Banque Centrale de Mauritanie

YEMEN The Yemen Bank for Reconstruction And Development

Yemen Commercial Bank

International Bank of Yemen

Arab Bank P.L.C.

The Yemen & Kuwait Bank for Trade & Investment

Tadhamon International Islamic Bank

National Bank of Yemen

Cooperative and Agricultural Credit Bank

NATIONAL AGENCIES

PALESTINE Palestine Investment Bank

Al-Quds Bank for Investment & Development

The Arab Bank P.L.C.

Palestinian Banking Corporation

FRANCE Union de Banques Arabes et Francaises – U.B.A.F.

MALTA First International Merchant Bank P.L.C.

UNITED KINGDOM British Arab Commercial Bank

Jordan International Bank P.L.C.

BRAZIL Banco ABC Brasil S.A.

BELGIUM Byblos Bank Europe S.A.

NATIONAL AGENCIES


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ANNUAL REPORT 2013www.atfp.org.ae

arab trade financing program - atfp

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