ADIH bucks trend

Abu Dhabi Investment House (ADIH) chairman Jowa'an Awaidha Al Khaili has announced a net profit of 260 million dirhams ($71 million) for the fiscal year 2008, an 18 per cent year-on-year increase from 2007.

As such, the board has approved the distribution of 40 per cent cash dividend.

Mr Al Khaili, pictured right, said: "We are very pleased with the exceptional results for 2008, despite current market conditions. This is attributed to clear strategy and a business model focused on identifying unique investment opportunities for growth in new sectors and markets, including North Africa, Asia and Europe. Extensive research and due diligence coupled with a strong relationship with our investors and governments where ADIH operates, are all vital factors in our success."

Total income for 2008 is at 427 million dirhams, a 36 per cent year-on-year increase, achieving a net profit of 260 million dirhams compared to 220 million dirhams recorded last year.

The balance sheet grew impressively to 1,542 million dirhams - an increase of 81 per cent when compared to December 2007. This reflected strong business growth driven by an increase in client investments in ADIH overall funds and projects. Total equity for 2008 rose by 63 per cent reaching 984 million dirhams, recording 1.27 dirhams earnings per share in comparison to total equity of 605 million dirhams in 2007 with 1.10 dirhams earnings per share.

ADIH managing director Rashad Janahi, pictured above, said: "ADIH risk management tools, complemented with extensive market study and a team of experts, assisted in making ADIH products more attractive to investors and successfully positioning ADIH as a major player in the regional market."

Among its achievements, ADIH began exploring the Chinese market and launched a number of new funds including the India Entertainment City Fund which will finance the Mumbai project's infrastructure.

ADIH also welcomed a new group of select institutional investors where it succeeded in raising its capital and increasing its shareholder equity to a total of 984 million dirhams.

ADIH made a final exit of Al Arabi Private Equity Fund 30 months earlier than expected and generating an overall internal rate of return (IRR) of 20.2 per cent, compared to a projected 20 per cent promised to the fund's subscribers on the launch in 2005.

And during 2008 ADIH's $90 million waterfront Porta Reef project in Bahrain achieved over 85 per cent record sales of its units to investors and homeowners and its $100 million Sunset Hills project located south of Bahrain also achieved almost 80 per cent sales.

Additionally, ADIH received the international CNBC Arabia Award for Best Development in 2008 for its Qatar Entertainment City project where the three-day event in its commercial project, The Lagoon, won the IVCA Award for Best Event in 2008.