Record H1 profit for GIC
KUWAIT CITY: The Chairman of the Board, Dr Yousef Hamad Al-Ebraheem, commended the excellent performance saying: "GIC has once again registered a strong performance, posting record profits, for the six months ending 30th June 2007. It is gratifying to note that GIC was able to continue the trend of profit growth, reflecting sound strategic planning, dynamism and proactive management. The corporation has been successful in identifying and capitalizing on opportunities in its diverse operating environments. GIC has emerged as a regional leader in its core businesses and I am confident that we will continue to play a vital role in the development of private enterprise within the GCC economies." The Corporation reported a net income after provisions of $212.9 million, which resulted in a return on equity of 26 percent per annum, for the six month period ended 30th June 2007, compared to $167.2 million for the same period in 2006.
Operating income during the first half grew by $52.2 million or 27.3 percent compared to the same period last year, reaching $243.4 million. All core businesses contributed to overall profitability.
Over the years GIC has been successful in developing a diversified range of revenue sources, laying the foundation for sustainable profitability. With its focus on the GCC countries, the corporation continued to reap the benefits of regional economic expansion, while investments in the global markets contributed towards overall profitability and provided benefits through diversification of risks. The balance sheet continued to grow with Total assets of the corporation reaching $8,322 million, an increase of approximately $209 million compared to 31st December 2006 levels. Commenting on the organization's solid performance and sound track record, Mr Hisham Al Razzuqi, the Chief Executive Officer, added "In addition to the robust performance in terms of profitability, GIC successfully executed several landmark transactions during the first half of 2007.
The GIC lead "Al Ezzel Power" project in Bahrain became operational on schedule, a reflection of efficient execution. The team also successfully completed the "Al Shuqaiq" and" Marafiq" transactions, two major Power & Utilities projects in Saudi Arabia, consolidating our leadership in this sector.
Within the Metals sector, major expansion plans, of Bahrain based Gulf Industrial Investment Company, have been initiated that would effectively double existing capacity. It is our objective to lead principal investments in key sectors that provide commercial returns while promoting economic and social development of the GCC."
The Corporation, with an authorized capital of $2.1 billion, continues to be one of the most strongly capitalized financial institutions within the region. GIC's financial strength is reflected in the superior risk based capital ratios. Gulf Investment Corporation is a leading regional financial institution that was established under the auspices of the Gulf Cooperation Council and is equally owned by the six member states of the Council: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. GIC was established in 1983 by the Gulf Cooperation Council and is owned equally by its six member states Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
The corporation, which has authorised capital of $2.1 billion, focuses on developing private enterprise and economic growth in the Gulf market through offering financial products and services.
© Arab Times 2007
