Global reports KD91.4m in profit for 2007

The company's board has recommended for the approval by the Shareholders' General Assembly a cash dividend of 50% and a stock dividend of 10%. The total amount of the cash dividend expected to be distributed is KD43.0m ($157.2m) compared to KD34.2 m ($125.11m) in 2006, a 25.7% increase.

The operating revenue recorded an increase of 39.9% compared to last year reaching KD154.4m ($564.6m). The fees, interest and dividend based revenues for the period stood at KD51.2m ($187.4m) which accounts for 33.2% of the total revenues. These fees were mainly derived from advisory, placement of private equity, asset management and other operations which are the core products and services the company offers.

Mrs. Maha K. Al-Ghunaim, Global's Chairperson and Managing Director, affirmed that 2007 was another record year for the company. The performance this year was distinctive where return on average shareholders' equity and return on average assets exceeded the international investment industry ratios reaching 32.2% and 11.4% respectively.

The Assets Under Management grew by 12.6% to reach KD 2.3 bn ($ 8.6bn) by the end of 2007. This was the result of the positive performance achieved by the funds and the current portfolio in addition to the new client investment inflows in new and existing funds such as the Global GCC Islamic Fund, Global Buyout Fund, Global Islamic Fund of Funds and the Global MENA Real Estate Ijarah Fund, and various direct and indirect investments.

Al-Ghunaim added that the company's principal investments activities also generated excellent income. Our investment portfolio consists of valuable assets that include listed and unlisted securities. Historically, Global has generated an average annual return exceeding 18% from its principal investment portfolio, thanks to the professional team that manages it.

Al-Ghunaim stated that to strengthen our capital base to fund future geographical expansion and strategic acquisitions and also to diversify our shareholders base by bringing in international strategic investors, the company's board has recommended for shareholders' extra-ordinary general assembly approval a 35% increase to its capital by issuance of new shares.

She added 'Global recorded significant achievements in 2007 that cemented its leadership in the financial industry and strengthen its presence in regional markets. We have the ability to meet the demands and needs of our clients by providing financial products and services and investment that achieves excellent benefits and the highest degree of quality.'

During the past year the company continued harvesting awards and recognitions. The company has been awarded 'Best Investment Bank in Kuwait for 2007' by Euromoney Magazine and 'The World Islamic Funds Excellence Award for 2007' from the World Islamic Funds & Capital Markets organization in addition to other awards.

She noted that the awards are cherished by Global and all clients whom the company recognizes their loyalty and that of its employees who are responsible for a large part of that success, adding that these awards affirm Global's commitment to creating an added value to the markets it operate in.

Referring to the expansion strategy of the company, she said that Global had continued to impose its geographical presence by obtaining licenses to operate in Saudi Arabia, Qatar, Turkey and Egypt.

In conclusion, Al-Ghunaim praised the company shareholders and its clients for their continuous support and affirmed that their welfare is a priority for the company. She also thanked all official supervisory and regulatory bodies, the Board members for their efforts and cooperation, and all employees for their dedication and loyalty in achieving the strategic goals of the firm.