35 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 year end:

 

	2023	2022
	AED’000	AED’000
Letters of credit	1,342	122
Letters of guarantee	399,344	505,107
Capital commitments	4,249	4,249
	404,935	509,478

 

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