Shareholders' equity rises to KD 382.1 mln
KUWAIT CITY: The Investment Dar Company (TID) announced that its net profits for the first six months ending 30-6-2007, hit record level by bumping to KD 91.5 Million, compared to KD 50.7 Million during the same period the year before, or rise of 80.5 percent. Share dividend by mid of this year hiked to 121.5 fils compared to 77.2 fils for the same period the year before. Investment Dar has enhanced its liquidity with its total assets remarkably growing to KD 1,171.9 Million compared to KD 855.5 Million during the same period in 2006 or hike of 37 percent. Total Shareholders' Equity rose to KD 382.1 million against KD 224.4 million during the same period in 2006 or growth rate of 70.3 percent. Investment Dar Revenues by mid of this year hiked to KD 133.2 million compared to KD 80.2 million with growth of 60 percent for the same period last year.
Investment Dar also realized good profits for shareholders by mid of this year. Return on Equity (ROE) was up to 26.5 percent and Return on Assets (ROA) was up to 8.2 percent. However Return on Capital was up to 124.2 percent or the highest return realized, despite the rise of total assets by 37 percent and the rise of equity rights by 70.3 percent. Adnan Al Musallam, Investment Dar Chairman and Managing Director said: Investment Dar resumed the tempo of rising and growing performance activities since the eve and during the first half of the current year. This crowned the series of growth of performance and profitability throughout the last few years." He underlined that Investment Dar is always working on generating multiple profit sources through the affiliate and subsidiary companies.
He pointed out that this permanent profit growth would not have been realized without the conservative policy adopted by the company. The policy is based on a host of elements. These are the fixed and precise methodology to diversify revenue sources without emphasis on a specific activity, expanding the investment activities, careful distribution of risks as well as the stability and competence of the executive management's team. All these elements contribute basically to the Investment Dar's drive for continued distinction and stability.
He said: "Out of Investment Dar's keenness on diversifying the income sources, it revenue were generated during the first half of the present year from major activities carried out by the company such as the investment sector, realty sector, finance sector, services sector and others". He added that this careful and well considered diversification of revenue sources, clear out the Investment Dar profit growth irrespective of the rise or fall of domestic and gulf stock market performance.
Al-Madar Sale
Touching on Investment Dar's prominent developments and achievements during the second quarter of the current year, Al Musallam referred to the completion of the sales deal of the full share of Al-Madar Finance and Investment. He said the sealing of the deal came within framework of the Investment Dar's strategy on restructuring its investments and pulling out from some of the investments after realizing the planned objectives. This is in line with strategy which Investment Dar declared earlier that is pulling out the investments with total value of KD 200 million. In addition, he went on, Investment Dar has addressed this deal with high professional manner through cooperation with major financial and investment companies (including Merrill Lynch International) with the aim of finalizing the deal's arrangements and assessing the fair value of Al-Madar share that ended up in the minimum 450 Fils per one share.
Aston Martin Deal
Al Musallam said: "By end of last May and immediately after signing the deal on purchase of a considerable share of the British Aston Marin for luxury cars - the deal acquired international recognition by winning the Most Innovative Financing Transaction award at the top seat of deals which is the British capital, London." He underlined that the deal which could be described by all standards as successful, is one of the long-term strategic investments which the Investment Dar plans to make an addition thereto through cooperation with the other strategic shareholders but this requires time. He noted that Investment Dar enjoys the best strategic relations and alliances with the major domestic, regional and international companies. The proof is the completion of the deal which is one of a group of successful operations completed by the company.
Addressing Investment Dar's well studied diversification strategy in all business sectors, Al Musallam said "We raised our investments in the banking sector by building a banking and consultancy network working regionally and globally that will allow us to provide our clients (Individuals and institutions) with innovative Islamic financial products and services. Clients who are grew from regional investors to global ones. Investment Dar provides specialized services and consultation in Islamic Financial industry to world renowned financial institutions. During the 2nd quarter of 2007, Investment Dar witnessed exponential expansion in the banking sector through its share increase in Boubyan Bank (Kuwait), establishment of Investment Dar (Kingdom of Bahrain) and Sham Bank (Arab Republic of Syria).
Investment Dar also believes in offering better services its clients and, therefore, it expanded its projects and investments in many countries including Bahrain, Saudi Arabia, United Arab Emirates, Arab Republic of Syria, Egypt and United Kingdom. "We are also looking for promising investment opportunities in other countries such as south and east Asia and Europe through companies, partnerships or alliances.
Boubyan Bank
Al Musallam said: "Investment Dar had during Q2 of 2007 the official approval of the Central Bank of Kuwait to acquire 20 percent share of the Islamic Boubyan bank. This came in line with Investment Dar plan to expand within the banking sector in general and benefit from the opportunities available for firming its presence in this vital sector. Besides the Investment Dar experience in the Islamic currency exchange field. This experience allows (TID) to enrich any banking acquisition that operates along according to the Islamic jurisprudence whether inside Kuwait or abroad. Al Musallam said that at the banking sector level, Investment Dar realized another achievement that is added to its record. This was through an announcement by the Kingdom of Bahrain on establishing the Investment Dar Bank whose constituent assembly met last week and announced the launch of its activities. The Investment Dar Bank has joined the Islamic Finance industry as a new Islamic Bank with an authorized capital totaling $1 billion. The subscribed and paid up capital is $200 million. The Bank groups beside Investment Dar a number of shareholders from the private sector with rich experience in the Islamic financing industry. The Bahrain-based Investment Dar Bank is an investment bank that works for financing the operating companies and institutions.
Sham Bank
On Sham Bank Adnan Al Musallam said that this Bank realized remarkable and unprecedented distinction despite its fresh presence in the Syrian banking market. It realized multiple operational achievements, lured a vast groups of clients within short time in addition to starting the financing of promising projects within framework of the rising Syrian economic system.
Al Musallam, Chairman of Sham Bank, said that despite the firm launch of Sham Bank and its march to continued success, there is still big chance for the Bank to grow and expand through access to bigger market share as the first Islamic Bank in Syria. The Bank will be of interest for a big category of clients who yearn for Islamic banking services. At the same time he predicted that the Bank will contribute to realizing a big developmental leap at the Islamic financial industry level in Syria.
Awards
Al Musallam said that these distinctive professional achievements were center of international recognition and appreciation. Investment Dar realized during the Q2 of the year new accomplishments added to the record of previous achievements, by getting the "Most Innovative Islamic Financing Transaction" award from the 2007 Sukuk Summit, that was held in London recently. This came in recognition of Investment Dar's achievements regarding the Aston Martin deal through the sukuk being the first deal of its type to finance acquisition of a major asset in Britain based on sukuk.
He went on saying that Investment Dar has also won at an earlier date the Best Islamic Financing Company award within context of the Banker Middle East Industry Awards that are remarkable annual prizes presented to the major financial and banking companies every year.
In addition to the above awards, Investment Dar has clinched new appreciation awards and good ratings including but not limited to:
The Best Investment Company, Arabian Business Awards 2007
Achievement Recognition Award, World Finance & Investment Conference
Gulf Economic Award by Exe-German Council Gerhard Shrewder - 2006
Top 50 most Distinguished Arab Companies: Rated 1st in Kuwait and 6th In the GCC - Arabian Business magazine
Top 150 listed companies in the GCC - Rated 1st in the GCC by sector - Gulf Business Magazine
7th in Kuwait - Dow Jones Arabia 50 Titans Index
Optimum Partner
On nature of (TID) investment business, Al Musallam cleared out that (TID) has made its way through its accomplishments and success to the international standard. This is in addition to the long and diversified experience of its working team in the field of financial and banking management besides other economic fields that allow excellent opportunities for promising partners to develop their activities which end by realizing good returns for the shareholders.
Society
Al Musallam underscored that these successes and accomplishments were not achieved afar from the company's full commitment to its social obligations, by way of sticking to the social responsibility strategy which is put in effect along with the investment strategy. The company he added, went on in playing its role at the social and public awareness level through support for various social activities with the aim of embodying the new development concept which hinges on the private sector's initiative that considers development a basis for practice within the Kuwaiti society and to be an example to follow by other companies and institutions. In this respect, Investment Dar made numerous initiatives towards helping the society. These initiatives include donating KD 500 thousand to help he prisoners and their families in Kuwait. Investment Dar also donated KD 100 thousand to Zakat House for poor and needy families in Kuwait which ranked Investment Dar among the Top 5 supporters of Zakat House. The health sector was also taken care of by Investment Dar by donating KD 100 thousand for cancer patients.
Investment Dar also donated $1 million for African Muslims to used for starvation and education in these African states.
© Arab Times 2007
