First Gulf Bank recommends 25 per cent shareholder cash dividends and 25 per cent bonus shares

The dividend/shareholding payout follows a record 2005 performance which saw the bank achieve a 331% increase in net profits reaching AED 1.055 billion compared to AED 245 million in 2004.

Addressing shareholders, the bank's Vice Chairman, Ahmed Al Sayegh, said: "Last year saw the emergence of a much larger First Gulf Bank with an enhanced equity base of AED 7.8 billion. This increase reflects a major shift in the bank's position locally and internationally and gives us more momentum and flexibility to move forward and expand our operations.

"Last year we also achieved our objectives of maximising financial returns, sustaining investor confidence and expanding our customer base. This has been achieved in line with our commitment to the UAE's economic growth and its inherent social objectives."

Al Sayegh said the GCC economies could well outstrip the double-digit growth of Asia's economies.

"Last year witnessed phenomenal change across the global economy. Higher oil prices and huge metal price rallies created opportunities for some economies whereas they were an ominous sign for Western economies."

"The double-digit growth of Asia's tiger economies has indicated that GCC economies can emulate, if not better, this growth."

The Vice Chairman went on to describe 2005 as "the beginning of a new era of economic growth for the UAE."

He said: "The increase in oil prices, drive towards economic diversification, and creation of an attractive investment environment has reflected positively on overall economic growth. The country's construction and real estate sectors are growing rapidly."

"The UAE on the back of very good infrastructure, a stable political environment and an investor-friendly climate will continue to grow rapidly with the ultimate objective of taking its rightful place in the global economy."

Meanwhile, the bank's Chief Executive Officer, Abdulhamid Saeed, says the record financial performance would allow the bank to grow further in the coming year.

"Our record financial performance is in line with the bank's plans to expand in the UAE market, making the most of the country's positive economic growth. The 2005 results leave us ideally placed to tap into new opportunities and launch new financial services."