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DBS, the largest bank in Singapore, receives licence to operate at the DIFC

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Bank to offer wholesale banking products and services in the Middle East

DUBAI, 1 APRIL 2006 – DBS Bank, the largest bank in Singapore and fifth largest banking group in Hong Kong, announced today that it received approval from the Dubai Financial Services Authority (DFSA) to open its first branch in the Middle East at the Dubai International Financial Centre (DIFC). It is among the first few Asia-based banks, and the first Singapore-based bank to receive a banking licence in Dubai.

DBS Bank is currently operating out of the DIFC’s Business Centre, and is expected to open its flagship branch within the DIFC in June 2006.

DBS initially plans to offer wholesale banking products and services including private banking, securities brokerage, asset management and trade finance activities to clients in the Middle East.

John Baggerman, General Manager of DBS Bank’s Dubai branch said, "Dubai is fast establishing itself as an important market for the international banking industry, and we are delighted to have received this license from the DFSA. This puts DBS in a good position to help our clients tap into the increasing volume of capital flows between Asia and the Middle East. With our strong capital intermediation skills, DBS Bank can offer Middle Eastern clients access to Asian business networks and provide financial expertise to link them with opportunities in other rapidly growing markets in Asia."

Dr Omar Bin Sulaiman, Director General of the DIFC Authority, commented: "We welcome DBS Bank to the DIFC where it joins some of the world’s best known financial institutions. As one of the leading banks in Southeast Asia, DBS Bank brings with it expertise of the Asian market while the DIFC offers access to a region which has a collective GDP of over US $ 1.9 trillion. We look forward to developing a highly successful and mutually beneficial relationship."

As the Middle East and Asia become centres of economic growth and capital formation, a presence in Dubai will allow DBS to extend its ability in intermediating capital flows in Asia to include the Middle East. Two-way trade has also been increasing between the Middle East and Asia, particularly with China, India and Indonesia, where DBS Bank has a growing market presence. As an Asia banking specialist, DBS brings its local knowledge and financial expertise to Middle East corporates and individuals looking to invest, or diversify their offshore investments into Asia.

Headquartered in Singapore, DBS has a strong network in Asia with almost 5 million customers. The Bank operates approximately 150 branches and 850 ATMs in Singapore and Hong Kong, and employs nearly 12,700 people in 14 markets and countries principally in the Asia-Pacific region. DBS has leading positions in consumer banking, treasury and markets, asset management, securities brokerage, equity and debt fund raising in Asia. The Bank’s credit ratings are among the highest in the Asia-Pacific region.

DBS Vice-Chairman and CEO Jackson Tai said, "We are delighted to receive final approval for our branch license in Dubai. The Middle East is experiencing remarkable development and we aim to bridge both Asia and Middle East, the two fastest growing regions in the world. This will enable us to enhance our services to our customers in both markets."

About DBS

Headquartered in Singapore, DBS is one of the largest financial services groups in Asia. The largest bank in Singapore and the fifth largest banking group in Hong Kong as measured by assets, DBS has leading positions in consumer banking, treasury and markets, asset management, securities brokerage, equity and debt fund raising. Beyond the anchor markets of Singapore and Hong Kong, DBS serves corporate, institutional and retail customers through its operations in Thailand, Malaysia, Indonesia, India and The Philippines. In China, the bank has branches and representative offices in Shanghai, Beijing, Guangzhou, Shenzhen, Fuzhou, Tianjin and Dongguan. The Bank's "AA-" and "Aa2" credit ratings are among the highest in the Asia-Pacific region. More information about DBS Group Holdings and DBS Bank can be obtained from our website www.dbs.com.

The Dubai International Financial Centre

The Dubai International Financial Centre (DIFC) is an onshore hub for global finance. It bridges the time gap between the financial centres of Hong Kong and London and services a region with the largest untapped emerging market for financial services.

In just over one year, more than a hundred top international institutions have joined the DIFC as members. They operate in an open environment complemented with world-class regulations and standards. The DIFC offers its member institutions incentives such as 100 per cent foreign ownership, zero tax on income and profits and no restrictions on foreign exchange. In addition their business benefits from modern infrastructure, operational support and business continuity facilities of uncompromisingly high standards.

The DIFC is made up of the following core bodies:

1. The DIFC Authority (DIFCA) - Responsible for the Companies and Security Registries and attracting financial as well as non-financial institutions to set up in the DIFC. (www.difc.ae)



2. The Dubai Financial Services Authority (DFSA) - An independent, unitary regulatory authority, responsible for the regulation of all DIFC operations. Its principle-based primary legislation is modelled on that used in London and New York, and its regulatory regime operates to standards that meet or exceed those in major financial centres. (www.dfsa.ae)



3. The Dubai International Financial Exchange (DIFX) – A liquid and transparent electronic market trading securities, bonds and derivatives, launched in September 2005, the DIFX eases access to regional and international investment opportunities and funds. (www.difx.ae)



4. The DIFC Courts - An independent court system set up to uphold the provisions of DIFC laws and regulations, the courts provide comprehensive legal redress in civil and commercial matters within the DIFC. The laws, enacted by His Highness Sheikh Maktoum bin Rashid Al Maktoum, UAE Vice President and Prime Minister, and Ruler of Dubai, provide for a new court system designed especially for the DIFC and the sophisticated transactions that will be conducted within it.


• The law establishing the Judicial Authority at the DIFC creates and sets out the jurisdiction of the court and provides for a dispute resolution services, including arbitration and mediation, thus allowing for the independent administration of justice in the DIFC; and



• The DIFC Courts Law sets out the jurisdiction, powers, procedures, functions and administration of the court. (www.difccourts.ae)