37 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:

	2021	2020
	AED’000	AED’000
Letters of credit	1,971	3,098
Letters of guarantee	594,167	756,759
Capital commitments	4,249	4,502
	————————-	————————-
	600,387	764,359
	=============	=============

 

All financial guarantees were issued in the ordinary course of business.