KUWAIT, 14 March 2007 — Gulf Investment House (GIH) made a record KD16,345,027 ($56.5 million) net profit in fiscal year ending Dec. 31, 2006.
Operating revenues stood at KD22.492 million in 2006. GIH delivered earnings per share of 40.26 fils with a return on equity of 23 percent. Total assets grew by 14 percent to KD94.8 million in comparison with last year’s KD83.1 million.
GIH Chairman Faisal Abdullah Al-Khazam said the company distinguished itself in a difficult operating environment caused by the latest downturn in Gulf equity markets.
“I believe GIH’s performance in 2006 has reinforced its position as one of the GCC’s leading firms of investment and financial services,” Al-Khazam said.
“GIH has demonstrated its strong and competitive performance. It remains committed to its strategy of identifying direct investment opportunities in the industrial, energy, health and education sectors. With economic fundamentals in the region remaining strong, we believe there are significant opportunities ahead for our shareholders and investors.”
He stated that GIH would continue to expand its activities in the Middle East. “Our direct investments include some of the region’s leading companies in their fields and we are proud of their achievements.”
Commenting on the establishment of Afkar Holding Co., a Kuwaiti shareholding company, and one of the major GIH companies established in 2006, Al-Khazam said “GIH and its strategic partners believe Afkar will be well positioned to take advantage of long-term investment opportunities in the petrochemical and industrial services sectors in the GCC, the Middle East, India and Turkey.”
The year 2006 also saw the listing of Arkan Al-Kuwait Real Estate Co, in which GIH holds a 21 percent share of capital.
GIH’s diversified portfolio, including investments in the residential and health care sectors in the US, was a key to the company’s success in 2006. “Our funds portfolio delivered excellent returns on investments, while Innovest Capital Inc., GIH’s wholly-owned US subsidiary, has expanded it’s activities by entering new markets such as the Canadian real estate market,” Al-Khazam said.
“As GIH grows, the company is continually striving to recruit and develop the best available national talent and support the development of Kuwait’s skilled national work force base. We intend to work diligently ... to deliver even greater successes in the future,” he pointed out.
