Al-Bahar: IFA achieves record profits of KD153 million and earnings per share of 522 fils

Al-Bahar said that the net profit for IFA was KD153 and the realised profit reached KD99 million while the unrealised profits were KD54 million.

Al-Bahar added that this profit was a result of the strategic investment plans adopted by the Board and implemented by its management. This effective implementation of the IFA's strategy can be clearly seen in its investment in the Hospitality field since the acquisition of the company mid 2002. Throughout the past three and a half years, IFA invested in the Tourism field in Dubai and was the first Kuwaiti company to invest in Palm Jumeirah Dubai with and investment of US$1 billion. IFA expanded through alliances and joint-ventures with Kingdom Hotel Investments Group (KHI), chaired by H.R.H. Prince Alwaleed Bin Talal Bin Abdulaziz Al Saud, which was successfully listed on the Dubai International Financial Exchange (DIFX) and in London in March 2006. IFA also formed strategic alliances with Moreland Developments (Pty) Ltd, Fairmont, Mövenpick, Kempinski, Sun International in South Africa in addition to Sheraton in Portugal. The company also acquired YOTEL which specialises in low-cost business class-style hotels.

This successful strategy also resulted in the listing of IFA Hotels & Resorts on the Kuwait Stock Exchange (KSE) on January 3, 2006 and on the Johannesburg Stock Exchange in South Africa. It is noteworthy to mention that in September 2005, IFA was the first Kuwaiti company to list on the Dubai Financial Market and enabled the company to increase its profits from KD 750, 000 in 2001 before the acquisition to KWD 153 million in 2005.



Al-Bahar said,

"IFA's strategy is built on the diversity and variety of investment tools that are spread across several geographical areas, lending flexibility to the investment by spreading and minimizing the investment risks and giving a higher Return On Investment to the company. The strategy also involves allying with leading groups in different investment and real estate operations covering GCC and the Middle East regions, Europe, Africa and Asia."

In 2005, we focused on investment funds that performed exceptionally during the year. IFA Khaleeji Fund achieved a 91 % profit and IFA Investment Fund achieved 102 % profit, when the market's average performance was 80%, and it distributed 100% on shareholders of the fund units. In spite of the decrease witnessed in the KSE in the first quarter, down to 14%, IFA Investment Fund only decreased by 4%.

"I am very optimistic about the future in spite of the fluctuating market performance in the Gulf in the past months. Such performances are normal and should be dealt with wisely, while keeping a close watch on economic standards and developments. The investment policies adopted by the company, including its policy for diversifying investments, will protect it from political and economic instabilities Apart from the expansion plans undertaken by IFA in the Middle East, Africa and Europe, the company plans on investing in the United States and East Asia to achieve greater success and continuously provide investors with a return on their investments and achieve the goal of transforming IFA from a local and regional company to an international company," Al-Bahar concluded.