JEDDAH, 22 January 2008 -- A new alliance between Al-Khabeer Financial Advisors and Al-Baha Investment and Development Company announced here on Sunday will jointly work on the basis of the principles of professional management and intercommunication with investors.
"This is aimed at striving to make it the first joint stock company that implements best investment practices," Al-Khabeer's Chief Executive Officer Ammar A. Shata said. According to the "strategic alliance" between the two companies, Al-Khabeer will provide to Al-Baha the principles of professional knowledge in the field of investment and channels of networking with the investors that it has.
"Thus, Al-Baha can be converted into a modern investment company not seeking to purchase the rights of operational control over targeted objectives, but to invest in activities anticipating growth and development in the sectors where it operates," Shata added.
The alliance between the two companies does not constitute a capital commercial partnership but one that prepares Al-Baha to achieve good levels of experience and to reach encouraging standards of performance the matter that opens chances to gain profitable returns of such investments that are usually available only for specialized financial companies.
Also, the alliance makes Al-Baha the first joint stock company specialized in the industry of private capital investment in the region and operating in accordance with the best practice applications in pursuance of Islamic law.
The strategic relationship between Al-Baha and Al-Khabeer is divided according to the contracts concluded into two stages. The first stage focuses on studying the present situation and determining new objectives for Al-Baha. It also includes the design of new work pattern to realize these objectives.
The second stage is that in which Al-Khabeer manages the Al-Baha investment activities according to the new pattern as well as preparing the company's administrative structure to manage its investments in furtherance of this alliance. Also Al-Khabeer will transfer knowledge to the administrative system to bear responsibility efficiently.
The first stage witnessed the determination of strengths and designing the methods of activating the same through financial, organizational and legal plans covering five years. It will complete the financial plan to determine the necessary capital requirement.
In the second stage Al-Khabeer will manage the investment operation of Al-Baha for three years renewable after obtaining the approval of the Capital Market Authority to increase its (Al-Baha) capital.
During this stage the responsibility of Al-Khabeer will include various basic assignments in providing specialized financial services for all of Al-Baha's investment activities.
By K.S. Ramkumar
© Arab News 2008
