KFH-Bahrain buys stakes in Jordan through subsidiary

The agenda addressed a number of strategies which included the progress of the newly formed operational infrastructure of the company and a detailed review of the status of potential investment projects under consideration throughout the Kingdom.

As a wholly owned subsidiary of KFH-Bahrain, KFH-Jordan has access to large financial and specialized resources. The company was incorporated under the Laws of the Hashemite Kingdom of Jordan and will perform activities such as Investment Banking, Investment Advisory, Acquisitions and Development of Investments, Investments in Private Equity, among others.

KFH-Jordan will inshAllah contribute highly to the rapidly growing Foreign Direct Investments in Jordan and the regional Economy in general. Recently Jordan witnessed a major increase in foreign investments, mainly in the Manufacturing and Hotel & Lodging Industries.

The board reviewed several investment proposals and approved the acquisition of a 28% stake in the Jordan-based Deera Investment & Real Estate Development Company.

This partnership falls in line with KFH-Jordan's interests in strengthening its growth by investing in Jordan's vital sectors. It is also basing this partnership on its strong belief in the real estate sector in particular, which is witnessing unprecedented growth and development.

"We are honoured to be a part of Jordan's phenomenal growth,"

said Abdulhakeem Alkhayyat, CEO & MD of KFH-Bahrain and Chairman of KFH-Jordan.

"Statistics recently released by the International Monetary Fund have revealed that Jordan's gross domestic product grew 6% last year, higher than forecasted by the government. This growth was driven mainly by the finance, insurance, real estate and business services sectors. Jordan's strategic location, its great scenic beauty and ease of obtaining key raw material has made it a superb location for investment."

"We are also privileged to have this great opportunity to work with Deera Investment & Real Estate Development Company, a company that is renowned throughout the region for its professionalism and dynamic forward-thinking," he added.

Deera Investment & Real Estate Development Company is a public shareholding company registered in Jordan. Following the acquisition by KFH - Jordan the paid up capital of Deera increased to JD40m. The company commenced its real estate operations at the end of 2005 and has since acquired significant holdings in the real estate market in Jordan. The company's activities include acquisitions, real estate project development, property management and the import of construction machinery, equipment, and materials.

Since its real estate operations started, Deera Investment & Real Estate Development Company increased its portfolio by 100%. Moreover, the management have successfully acquired several land plots in prime locations inside and outside of Amman which will enable the company to develop outstanding projects. Deera & KFH-Jordan are currently in the process of establishing (5) SPV's in order to implement the execution of (5) major projects in Amman with investments exceeding $200m.

On this occasion, H.E. Dr. Hatem Halawani, Chairman of Deera Real Estate Development Company said:

"We are very proud to have KFH-Jordan on board as our newest strategic partner as they fully understand the needs of the Jordanian market. We believe that this partnership fortifies our efforts in achieving our objectives and enable us to continue our pioneering role in the development of the real estate sector."

Following the board meeting, Mr. Alkhayyat said: "There is no better time to invest in Jordan because of the strong growth in the market, political stability and continued prosperity of real estate. We strongly believe that the company will be a positive contribution to the Jordanian economy."

He added: "consistent with our investment strategies to attract high levels of competencies and expertise, we are seeking to attract the best in the investment and banking industries in Jordan. This falls within our desire to play a pivotal role in advancement and growth of the society."