Global achieves KD46.7 million net profit for H1 2007

During the same period last year, net profits reached KD34.5 million (USD119 million).

Shareholders equity increased from KD244 million (USD847 million) at the end of 2006 to KD275 million (USD955 million), while the company's total assets under management (AUM) have increased to KD2.390 billion (USD8.3 billion) for the first half of 2007 compared to KD 1.928 billion (USD6.681 billion) for the same period in 2006.

Mrs. Maha Al-Ghunaim, Global Chairperson and Managing Director, said that during the last quarter Global maintained its active role to add value to the GCC and regional capital markets utilizing diversified financial tools and keeping abreast of the international developments through its strategic investments, which was reflected in further acquisitions, world class ratings for Global's products, in a additions elevating its Corporate Governance measures.

"During the last quarter, Global has seen several significant milestones on various levels from its position as a major player on the investment scene in the region. Two of these milestones were obtaining the license for Global Investment House-Saudi (Global-Saudi) which will allow us to directly operate in Saudi Arabia, and the signing of a USD300 million syndicated loan which involved 29 local and international banks."

In June, Global received the license to open Global Investment House Saudi Arabia (Global-Saudi) as a Saudi joint stock company with a capital of 50 million Saudi Riyals.

The new company will be a full fledged investment bank set to carry out various financial services such as; the establishment and management of investment funds, portfolio management, International brokerage, private and public placement, underwriting, advisory, dealings as a principal and as agent, and custody.

Al-Ghunaim followed by saying that the other important event was the signing of a USD300 million syndicated loan with 29 local and international lenders, pointing that Global had initially requested USD150 million.

"However, the banks agreement to double the syndicated loan demonstrates their strong belief in Global as a regional power house and our ability to fulfill our investment strategies as well as our financial commitments."

On the other hand, Al-Ghunaim stated that Global continue to launch investment funds that are unique in structure, investment strategy that grasp investors' attention as evident by the amount of capital they are able to raise in a relatively short period.

She added that the company launched last May "Global Islamic Fund of Funds" as a variable capital fund investing in local and international Islamic Shari'a compliant funds.

Global Buyout Fund which the company launched last March was able to raise USD430 million in investment capital so far. The capital will be used to invest in high potential companies of the Middle East, North Africa and Turkey and may also invest in Asian countries such as China, India.

AlGhunaim continued by saying that Global has launched "Global GCC Islamic Fund", a variable capital investing in GCC companies that are compliant with the Islamic Shari'a, also in March.

Currently, the fund has many individual and institutional investors who were attracted by its investment objective which is to maximize returns through investing in GCC companies that are consistent with the Islamic Shari'a principles."

On the other side Global's Chairperson and Managing Director confirmed that the company is aware of the importance of its institutional role within the region's capital market and maintain an open and clear channel with its clients and stakeholders through Corporate Governance.

She stated that Global held last May its first Financial Analyst meeting under the theme "An Open Book" as a way to demonstrate the transparency of the company, performance, and the company's future outlook.

AlGhunaim affirmed that Global "continued to remain on a high growth path from all dimensions."

On the Corporate Finance side, she that during the last quarter Global issued bonds worth KD45 million divided into two tranches with 5-year tenor, and a BBB+ rating from Capital Intelligence to use in various company operations.

Furthermore, she pointed that Fitch Ratings, a major international rating agency has assigned Global ratings of Issuer Default 'BBB', a stable outlook, short-term 'F3' and Individual 'C'.

"Since our inception in 1998, we have achieved growth in all key financial performance indicators, reflecting success of our core strategies and business model accompanied by moderate risk taking leading to an investment grade rating," she said.

In addition to Global recently received "Best Bank in Kuwait" from Euromoney Magazine, the third consecutive award from the authoritative publication. In 2004, Euromoney awarded Global the "Best Equity House in Kuwait". Later, the company received "Real Estate Investment" award in December 2005 from the magazine.

She affirmed that these latest awards in the past three years bare the fruit of the company's dedication to be a leading investment bank within the local and regional economies, in being creative and to work with a spirit of an entrepreneur on all corporate levels.

Al-Ghanim ended by saying that Global success and accomplishments are a result of the Board member continuous support and the efforts extended by all Global employees.