36 Related party disclosures
Related party disclosures
Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions. In the case of the Group, related parties, as defined in the IAS 24, include major shareholders of the Group, directors and officers of the Group and companies of which they are principal owners and key management personnel.
The year end balances in respect of related parties included in the consolidated statement of financial position are as follows:
| 2023 | 2022 | |
| AED’000 | AED’000 | |
| Loans and advances to customers | ||
| To key management staff | 105 | 1,041 |
| To members of board of directors | 59,984 | 35,045 |
| To other related party | 55,695 | 29,139 |
| Customers’ deposits | ||
| From other entities under common control | 252 | 3,577 |
Balances with related parties include loans granted to Directors and their related parties amounting to AED 115,679 thousand as at 31 December 2023 (2022: AED 64,184 thousand). Loans and advances to related parties are determined by management at agreed rates.
Customers’ deposits and margin accounts carry fixed interest rate ranging from 0% to 0.75% per annum (2022: 0% to 0.75% per annum).
Outstanding balances at the year-end are unsecured. There have been no guarantees provided or received for any related party receivables or payables.
The significant transactions included in the consolidated financial statements are as follows:
| 2023 | 2022 | |
| AED’000 | AED’000 | |
| Interest and commission income | ||
| From key management staff | 31 | 60 |
| From members of board of directors | 4,402 | 2,884 |
| From others | 2,788 | 709 |
| To others | 16 | 289 |
| Key management remuneration | ||
| Short term benefits (salaries, benefits and bonuses) | 14,467 | 15,047 |
During the year the Group paid directors’ remuneration amounting to AED 2,048 thousands (2022: AED 2,251 thousands) and proposed directors’ remuneration AED 3,466 thousands (2022: AED 2,048 thousands).
The above-mentioned outstanding balances arose from the ordinary course of business. The interest rates charged to and by related parties are at agreed rates.
