Global EGM approves capital increase by 35% and distribution of 50% cash dividend

The approved total cash dividend distribution for the year 2007 is expected to be KD43m ($157.3m) compared to KD34.2m ($125.1m) in 2006, an increase of 25.7%.

Mrs. Maha Al-Ghunaim Global's Chairperson and Managing Director stated to the General Assembly and the EGM with 88.8% of the company's shareholders in attendance, that the capital increase is to fund Global's future geographical expansion and strategic acquisitions.

Al- Ghunaim affirmed that the capital increase is expected to broaden Global's institutional shareholder base as well as to provide access to international investors.

She continued that last year was another successful year since Global's inception, to continuously achieve strong and sustained performance which till today proves Global's trust in providing opportunities to shareholders for future growth and huge successes.

She emphasized that in 2007, the GCC economies continued to experience a macroeconomic boom, for the sixth consecutive year. By almost all economic measures, the GCC economies continued to make solid progress towards entrenching sustainable rapid economic growth, private sector development, rising living standards, market liberalization, global integration, fiscal resilience to negative oil price shocks, enhanced external liquidity, greater financial sector intermediation and efficiency, and capital market deepening.

Whereas, 2007 was a year of contrasting market conditions for the international markets. The first half had a relatively benign environment, followed by credit market turbulence in the second half.

She pointed out that the contribution of the growth in the GCC region, Global's strategies, diversified business model and risk philosophy resulted in yet another year of strong financial performance. Net income for the year increased from KD71.4m ($261.2m) to KD91.4m ($334.2m), a 27.9% increase. The revenues (total operating income) increased by 39.9% to reach to a KD154.4m ($564.6m) level.

Global's balance-sheet size expanded to KD0.913bn ($3.3bn), a 32.0% increase as a result of growth in various lines of business, whereas the fiduciary assets under management reached KD2.3bn ($8.6bn).

Global has been successful in achieving an increased level of return for its shareholders, as reflected in an increase in the earnings per share (EPS) to KD0.109 ($0.4) from KD0.089 ($0.33) in 2006, ended Al-Ghunaim.

In addition during 2007, the Capital Market Authority of the Kingdom of Saudi Arabia granted Global a license to establish a full service investment bank in Saudi Arabia and the Central Bank of Bahrain also upgraded of the Bahrain operations license to an investment banking license.

She reminded the general assembly and shareholders that in order to expand its funding sources and to increase the contribution of medium and long term borrowings in our external funding mix Global had established, in September 2007 , a $2bn Euro Medium Term Note Program (EMTN).

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.