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 year end:

	2022	2021
	AED’000	AED’000
Letters of credit	122	1,971
Letters of guarantee	505,107	594,167
Capital commitments	4,249	4,249
	————————-	————————-
	509,478	600,387
	=============	=============

 

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