Gulf Holding Company profits at KD5.78m in 2008

Subject to approval by the Annual General Meeting (AGM), the Board of Directors has proposed the company's maiden dividend of 10% as bonus shares.

Commenting on GHC's performance over the three years since it began operations, Chairman Abdul Rahman Al Jasmi said: "Despite the worldwide turmoil in the financial markets, 2008 was a noteworthy year for Gulf Holding Company and we are pleased with the growth in the annual revenue the company has achieved over the past three years. This sterling accomplishment is evidence of our sound corporate values and the strong foundation on which the company is built, with our management team exhibiting a remarkably innovative approach to risk management during these turbulent times."

"The year gone by has witnessed the implementation of some of our most ambitious plans, including the highly successful listing of our subsidiary Villamar Sukuk Company Limited's $190m sukuk bond issue on the Dubai International Financial Exchange (DIFX). Another significant initiative was our foray into the fast-growing North African market through our acquisition of the 400,000 sq m Touristic Zone of the Royal Resort Cap Malabata project in Morocco, where we are in the process of developing the Euro 260m mixed-use Villa Royale project as part of our exclusive Signature Series," Mr. Al Jasmi added.

Mr. Ahmed Al Ameer, Vice-Chairman and Chief Executive Officer, GHC, said:

"GHC is well-attuned and responsive to the business dynamics of the market as well as the investment needs of its discerning clients. Our financial results clearly reflect the prudent and rational approach we have taken to successfully chart the Company's path to stable and sustainable growth and development. Our team has achieved tremendous progress in executing our business plan under recessionary conditions, thereby ensuring strong growth in revenues and a healthy balance sheet that promises stable long-term returns for our stakeholders."

One of the flagship projects in GHC's current portfolio is the $650m, 35,900 sq m Villamar @ the Harbour at Bahrain Financial Harbour, which is considered to be Bahrain's most exclusive residential complex.

The Euro 260m Villa Royale, GHC's maiden venture in the Kingdom of Morocco, is on the fast-track with the foundation stone being laid within two months of the announcement of the project last year at a special event attended by the Wali of the Tangiers government, Mr. Mohamed Hassad, high-level government officials, investors and members of the media.

GHC is currently in the process of listing itself on the Kuwait Stock Exchange, its long-term vision being to diversify into a trusted global holding company offering intelligent and value-driven investment products and services. In pursuit of this vision, it has drawn up an ambitious expansion programme which will see it covering the GCC region in the near term and the key markets of North Africa and South Asia.

To support its expansion and diversification, the company will be opening more offices in the region and will foray into the telecommunications, energy and logistics sectors, in addition to its continuing focus on real estate development.