New financial institution - AED200 million Abu Dhabi Investment House - gets approval from Central Bank of UAE

Abu Dhabi Investment House promoted by a group of prominent businessmen, leading institutions, and investors from the UAE and the Gulf region will focus on the existing as well as emerging potential for investments in private equity, capital markets, asset management, investment placement etc.

Announcing the imminent commencement of operations of the new financial institution, which will be based in Abu Dhabi, Mr. Rashad Yusuf Janahi, member of the Founder's Committee and Chief Executive Officer, Abu Dhabi Investment House, said: "The new investment house has been set up with the aim of providing diligent investors a variety of high-yielding investment opportunities in the wake of the economic expansion in the region evidenced by high liquidity levels, rising stock market valuations and real estate boom."

"The establishment of ADIH also comes at a time when the growth forecast for the region by experts is buoyant and in GCC alone a faster cluster growth of 5.2 per cent is expected in 2005. The region as a whole is witnessing a wealth effect thanks to the accelerated economic growth and greater liquidity which has fuelled increased public and private expenditure," he said.

"As a local entity, ADIH is clued in to the positive economic developments taking place in the region and we are in a position to offer an array of investment options linked to the performing sectors of the regional economy through tailor-made packages. We are confident that we will be able to guide investors to high-yielding, untapped productive investment avenues and enable them to reap the dividends of the economic growth of the region."

Mr. Janahi said the number of high net worth individuals in the Middle East with over US$1 million in investable assets is on the rise. "We are convinced that there is a large gap between awareness of investment opportunities and funds that are available. Coupled with this is the fact that post-9/11, Arab investors are more keen to invest in regional growth opportunities encouraged by the increasing openness in the MENA economies."

He said ADIH will offer a broad spectrum of investment options ranging from wealth management, private equity investments, fund management, real estate investments including in infrastructure development projects and brokerage activities etc. The financial institution will also organize and manage Initial Public Offerings (IPOs) and selling and buying of domestic and international securities.

"We are also open to joint ventures with leading financial institutions in the UAE and the region in general as part of our strategy to offer best-of-the class investment opportunities to our clients," Mr. Janahi said.

"The regional market is increasingly becoming sophisticated and we believe that innovative strategies are the need of the hour. Accordingly, we are working on a range of investment instruments which will be announced soon," he added.