37 Commitments and Contingent Liabilities
Commitments and Contingent Liabilities
The Group provides letters of credit and financial guarantees on behalf of customers to third parties. These agreements have fixed limits and are generally for a certain period of time.
Capital commitments represent future capital expenditures that the Group has committed to spend on assets over a period of time.
Irrevocable commitments to extend credit represent contractual irrevocable commitments to make loans and revolving credits.
The Group had the following commitments and contingent liabilities outstanding at period/year end:
| 2020 | 2019 | ||
| AED’000 | AED’000 | ||
| Letters of credit | 3,098 | 16,532 | |
| Letters of guarantee | 756,759 | 1,093,270 | |
| Capital commitments | 4,502 | 4,200 | |
764,359 |
1,114,002 |
All financial guarantees issued are in the ordinary course of business.
