Global records KD22.5 million profits in Q1 2007

The quarter's total revenues are KD34.8 million with an increase of 33% compared to the same period of last year. Shareholders equity has also recorded an increase to reach KD231.6 million (USD799.7 million) on March 31st 2007.

The return on equity and the return on assets have surpassed the international investment industry benchmarks as they reached 38% and 13% respectively.

Mrs. Maha K. Al-Ghunaim, Global Chairperson and Managing Director said, "The first quarter performance has surpassed our expectations. We sustained increasing Global assets along with our local, regional and international investments network. We have also launched investment products for our clients in and out of Kuwait, which in return should enhance the capital market's capabilities in the region, reflecting handsomely on assets under management along with returns throughout the quarter."

The company's Assets under Management (AUM) have increased to KD2.1 billion (USD7.4 billion) compared to KD2.085 billion (USD7.2 billion) at the end of 2006. This increase is the result of new investments and the performance of Global portfolio and investments fund managed by the company. The increase of AUM does not include the investments in the funds that have been launched in the first quarter, namely Global's Buyout Fund.

Recently, Global's 10 Large Cap earned the "Best Investment Fund" award for 2006 from Lipper - Reuters. The fund's performance have surpassed the market's expectations in 2006, which reflects the value of the investment funds as an investment tool, specially those with unique investment strategies, and its capabilities of generating high returns regardless of the markets fluctuation.

Al-Ghunaim added, "The first quarter of 2007 witnessed the launch of a number of investment funds with exceptional investment strategies. Global launched the GCC Islamic fund, the Jordan Fund and Global's Buyout Fund which aims at investing in private companies with great growth potential that operates in the Middle East, North Africa and Turkey along with Asian countries like China, India and Pakistan.

Global's Buyout Fund has been endorsed by Bear Stearns International and JP Morgan Cazenove, who are also distributing and marketing the fund to their clients among institutions in Asia, Europe and North America.

During the quarter, Global has signed an agreement in the first quarter with Auerback Graysons, one of the largest American financial brokerage firms, to become its exclusive partner in Kuwait to their international clients interested in investing in Kuwaiti listed companies, she pointed.

Global has been chosen due to its impressive track record and reputation, more notably its Local and GCC Investment Department and its vital role in the local and GCC markets.

"Global also continued to work with high efficiency in regards to its investments operations management through cost rationalization, financial engineering, and appealing investment products which contributed in increasing the returns on equity and its returns on the investments," she followed.

Also during the quarter, Global sold its share in Kadhma Holding Company for KD13.2 million (USD45.6 million) resulting in a profit of KD9.6 million (USD29.4 million). Global's pro-rata share in the net income of Kadhma up to date of sale and initial partial sales added another KD1.1 million (USD4 million) to net profits.

Al-Ghunaim affirmed that this deal shows that the company has outstanding assets in its portfolio, which includes listed and unlisted companies and is also the results of the vast expertise of Global Corporate Finance team in establishing companies and listing them in the financial markets.

On the other hand, Mr. Soud Ba'alawy is a member of Global Board of Directors representing Dubai Investment Group. He replaces the former Chairman, Mr. Anwar Abdulla Al-Nouri. Mr. Soud's membership is considered a unique contribution to the company's board with his exceptional expertise in the investment sector.

At the end, Al-Ghunaim express her deep gratitude to all governmental institutions and entities and Global clients for their support , and the company staff who contributed to the success of Global since its inception till today.