Global Investment House profits in 2004

Global's profits were primarily derived from risk-free capital comprised of commissions, public offerings and consulting fees. The company's board has approved to recommend to the general assembly to distribute 70% cash dividends, 10% stock dividends, in addition to a capital increase of 20% at 100 fils par value in addition to 500 fils premium.

Mr. Anwar Al-Nouri, Chairman of the Board stated, "Since its inception in 1998, Global has adopted an income strategy based on fees which helped increase its income year after year, despite market fluctuations. Global shall remain on this path, as we work to maintain our pioneering and vital role in developing the capital markets in Kuwait and the region."

He added, "Since we started, we have been adamant in conducting studies and research in this sector, and in introducing various investment tools that benefit the investor and our shareholders. Global adheres to the highest level of transparency and professional standards known within the industry."

Mr. Al-Nouri added that Global's policy during the year focused on geographical expansion, which does not stop at its own capabilities, rather surpassing it to encompass additional skills and resources. "The company has initiated its growth and expansion strategy throughout the GCC, utilizing the fact that Kuwait is a natural extension to the GCC. Additionally, the GCC market is promising with various opportunistic investment prospects," Mr. Al-Nouri concluded.

The first step in Global's expansion strategy commenced with the opening of the office in Bahrain in 2003. Global already has a number of funds domiciled in Bahrain. In addition, in October 2004 Global listed on the Bahrain Stock Exchange, and the company acquired stakes in many leading companies throughout the region, such as United Financing Company and Shurouq Investment Services Company; both of which are based in Oman. Global also has a stake in BankMuscat International, based in The Kingdom of Bahrain, and is co-owner of a Malaysian bank with Qatar Islamic Bank, among other acquisitions.

Global's Chairman pointed out that 2004 witnessed many accomplishments for the company. Assets under management had reached over KD1billion (USD 3.4billion) by year-end. This growth resulted from the popularity of the ongoing funds managed by Global, supplemented by the success of the returns realized by the operating funds.

Furthermore, Global achievements during 2004 included the execution of a number of feasibility studies which resulted in the establishment of companies in various sectors; most significant being the real estate and healthcare sectors. Within real estate, three companies came into play; Al-Mazaya Holding Co. with a capital of KD15 million, First Dubai Holding Co. with a capital of KD20 million, and Kuwait Business Town Holding Co. with a capital of KD52 million. These companies aim at benefiting from the many opportunities offered by the real estate sector in Kuwait and Dubai.

Within the healthcare sector, Al-Razzi Holding Company was established with a capital of KD50 million. "We believe the healthcare sector is a promising sector in the GCC," the Chairman stated.

"It is clear that Global was, through its accomplishments, able to reach an advanced and unique level in the financial services sector. Collectively, these accomplishments are a source of comfort and challenge," Mr. Al-Nouri said.

Finally, Mr. Al-Nouri applauded the role of Global's shareholders and clients as they support and encourage the company. He assured that their "interest is our priority...I would like to thank all the monitoring and supervising agencies and the board members for their effort and cooperation, and the company's employees for their loyalty and understanding of the company's tools to achieve its goals," A-Nouri concluded.