DUBAI/BAHRAIN, 14 May 2006 — Gulf Finance House (GFH) will start trading its shares on the Dubai Financial Market (DFM) from today.
With this initiative, GFH will join a select group of GCC companies that are cross-listed on three regional bourses — Kuwait Stock Exchange, Bahrain Stock Exchange and DFM.
Welcoming the listing, UAE Minister of Economy and Planning Sheikha Lubna Khaled Al-Qasimi said: “The listing of Gulf Finance House on the DFM is a welcome example of the recent trend toward offering investors in Dubai with more cross-border investment opportunities, thereby giving the DFM more breadth.”
GFH, a leading regional Islamic investment bank, recently reported strong 2006 first quarter results. Net profit for the quarter rose by 75 percent to $57 million compared to $33 million in the corresponding period for 2005. Total assets increased by 133 percent to $1.29 billion, while shareholders’ equity grew by 110 percent to $524 million. This announcement was preceded by a declaration of net profits of $140 million with a 60 percent dividend payout for the year ended December 2005.
DFM Director General Essa Kazim said: “It gives me great pleasure to welcome Gulf Finance House, a leading Islamic investment bank, to our bourse. This listing, we believe, will add further breadth to the Dubai market and support our plans to increase the number of companies listed on the DFM.”
Commenting on the listing, GFH Chairman Dr. Fuad Abdulla Al-Omar said: “GFH is recognized as one of the leading Islamic investment banks in the Middle East, winning the ‘Best Investment Bank 2005’ award from the Banker Middle East magazine. This achievement has been made possible due to our excellent team of international professionals, our continuous focus on innovation, adept risk management and our strategy of regional diversification and cooperation.
“The listing of our shares on the DFM is a natural next step of this strategy. It is our response to the requests of many investors based in Dubai, an increasingly important market for us.”
In Dubai, GFH is the originator and major arranger of financing for the landmark $3.8 billion Legends project in Dubailand, one of the leading innovative tourism and mixed-use projects in the region. GFH projects elsewhere in the region include the $1.4 billion Bahrain Financial Harbor and the $1 billion Al Areen development in Bahrain; the $1 billion-plus Royal Metropolis in the Hashemite Kingdom of Jordan; and the $2.6 billion Energy City Qatar energy business center, the first of its kind in the Middle East.
Esam Janahi, CEO and board member of GFH said: “GFH has consistently delivered superior returns to its shareholders and clients. Our performance is not directly affected by stock market conditions. We recently embarked upon a strategy of expansion that will see GFH transforming itself from a leading regional bank to being at the forefront of Islamic banking globally. The listing provides investors in the UAE with a useful opportunity to share in our success.”
Future plans of the Bank include the introduction of opportunities to invest in the telecommunications sector, in addition to the existing and planned opportunities in the financial services and infrastructure development sectors, both regionally and internationally.
