Press Release Content

Factoring YTD turnover has crossed AED 1 Billion in August 2008.

The factoring volumes have grown 243% over comparative YTD'07 figures and a corresponding asset growth of 3 times over the previous year.

Several new factoring relationships have commenced this year and the pipeline of new business is growing with CBUs adopting this new product offering. JAZ, SUK, SHJ and AMR CBUs have been active with acquiring new factoring relationships with several more in the pipeline.

Commenting on this growth, Mr. Abdul Wahid Al Fahim, General Manager - Wholesale Banking emphasized the need to grow transaction based products like Factoring and Trade. Factoring benefits us through assignment of receivables and effectively spreads client risk over large buyer base, which can further be secured through credit insurance. As a business strategy we need to move into short term self liquidating transaction based exposures which also generate non fund income in contrast to evergreen overdrafts and medium term loans.

Factoring has witnessed an increasing demand from all segments of our corporate clients depending on their requirements of credit protection and funding in domestic as well as international trade.

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