Kuwait-based Gulf Investment House to form major GCC Shari’ah-compliant real estate investment enterprise
Ahmed Ramadhan Juma (ARJ) Group, the diverse trading and engineering services giant and one of UAE’s most respected and venerable conglomerates, has joined forces with the Kuwait-based Gulf Investment House, one of the GCC’s leading financial services company to form Mada’in Real Estate Company, with key investors representing some of the set to be a major new player in the GCC’s booming real estate sector. The new joint venture was announced at a press conference in Dubai by Waleed A. Al-Rowaih, Vice Chairman and Managing Director of Gulf Investment House.
The newly established company will be involved in the full range of Shariah-compliant real estate activities including the purchase, sale, possession, division and development of lands and properties, and the construction of residential, tourism and commercial buildings. Mada’in Real Estate Company is being launched with a paid-up capital of AED 500 million (US$ 136,131,464.).
GIH and its investors from Kuwait and other GCC countries will own 49% of the privately-subscribed capital while ARJ and its partners from the UAE will own 51%.
Ahmed Ramadhan Juma, Mada’in Real Estate Company’s Founding Committee Chairman, and the Chairman of the Ahmed Ramadhan Juma (ARJ) Group of companies believes that the new company will benefit from the mammoth projects currently taking place in Dubai and in the region. “The studies we conducted showed that the target internal rate of return (IRR) on the Capital is %16.1, after deductions for financial outlays. The Internal Rate is based on economic assumptions prepared by specialist consultant we retained Mada'in Real Estate Company will cooperate with other companies established by Gulf Investment House in Kuwait, Saudi Arabia and the Kingdom of Bahrain to provide more beneficial opportunities to their clients utilizing from the various experiences and information of the network of these companies.
Mr. Juma explained that the aim of forming Mada’in Real Estate Company was to leverage the collective expertise of major forces in the regional real estate development sector. ”Our investors represent some of the most experienced developers in the region, bringing many decades of practical, on-the-ground understanding of the real estate financing, construction and development.“ Al Mada’in Real Estate investors include Bahrain-based Gulf Finance House and Gulf Construction Company, Kuwait-based Arkan Real Estate Development Company, Osool Finance and Leasing Company and Amaar Finance and Leasing Company, Saudi-Lower-Gulf-based Gulf Real Estate Company, and U.S.-based Trans-Ocean Capital and Innovest Capital, the U.S.-based real estate arm of Gulf Investment House.
From his side Mr. Waleed A. Al-Rowaih, Vice Chairman and Managing Director of Gulf Investment House, and a member of the founding committe in the Madai’n real estate company explained that Dubai was chosen as the company headquarters because of the emirate’s spectacular growth and development in the real estate sector. ”Over the past few years Dubai has seen more changes than your average city will see in decades,“ he said. ”Dubai is arguably the fastest growing city on earth. The various developments currently taking place in Dubai are visionary in conception and iconic in scale. Dubai has the most advanced infrastructure in the region making it a Business, tourist and maritime regional hub and a gateway to the East.“
Al-Rowaih believes that the synergies between ARJ Group and GIH will prove to be a winning formula. "Our organisations are leaders in our respective fields, bringing a deep understanding of our markets. We both follow conservative business cultures that value common sense and sound growth principles. Mada’in Real Estate Company will be introducing a unique series of specialized investment products to the real estate sector in UAE that will realize excellent returns to investors.“ He added that the tremendous potential in the GCC’s real estate sector will reinforce the success of the new venture. "The economies of the UAE & GCC as a whole are now in their sixth year of uninterrupted growth and we expect that the fundamental structural changes taking place in the region will continue.“ As for Dubai, Al-Rowaih cited the 42% increase in population between 1998 and 2003 from 2.8 to 4 million as major contributing factor to the surge in demand for U.A.E. real estate.”
Members of the founding committee of Mada’in Real Estate Company are of among the leading businessmen in the region. Chairman Ahmed Ramadhan Juma is the Chairman of the Ahmed Ramadhan Juma (ARJ) Group of companies, which he founded in the 1960s built in to a regional leader in the field of Fluid Technology and one of the GCC’s largest Engineering Products Suppliers. The company now operates in more than 16 outlets across the GCC, and deals with more than 40 world-reputed brands. Waleed A. Al-Rowaih, Vice Chairman and Managing Director of Gulf Investment House, has previously held the position of Vice Chairman and Managing Director of Osool Leasing and Finance Company in Kuwait. He previously held the post of Deputy General Manager of Kuwait Finance House (KFH). Among his many achievements at KFH was the establishment of KFH's Commercial Sector, which today, is a leader in consumer financing in Kuwait . As the Deputy General Manager of KFH, Mr. Al-Rowaih had the responsibility for the overall strategy and operations of the Bank. Mr. Al-Rowaih sits on the Board of Directors of many local and regional financial institutions.
GIH is one of GCC's leading financial services companies. The shareholders of GIH include well-respected and reputable Kuwaiti and regional financial institutions and individuals. With a diverse shareholder group, and a reputed Shari'ah Board, GIH has the capability to access significant capital for the Private Equity, Real Estate and Direct Investments to form the core business activities of the Company. GIH has investments in GCC, Europe, U.S.A. and other selected markets. GIH is a financial services firm with main focus on direct investments, structuring investment funds, private equity, and real estate investments.
ARJ Group and GIH have joined forces to form a new entity and are currently preparing to form a high-powered board of directors whose task will be to set the general strategic direction of the company and specify objectives and formulate a winning work plan.
Gulf Investment House, founded in 1998, is one of GCC's leading financial services companies. GIH is a private shareholding company based in Kuwait with a subscribed and paid up capital of KD 34.8 million (U.S. $ 117 million). The shareholders of GIH include well-respected and reputable Kuwaiti and regional financial institutions and individuals. With a diverse shareholder group, and a reputed Shari'a Board, GIH has the capability to access significant capital for the Private Equity, Real Estate and Direct Investments to form the core business activities of the Company.
GIH has investments in GCC, Europe, U.S.A. and other selected markets. GIH is a financial services firm with main focus on direct investments, structuring investment funds, private equity, and real estate investments. In addition to these, GIH offers financial advisory services for private and corporate clients. Our Treasury Division manages the interest rate risk, forex risk and liquidity risk associated with the company's enhanced balance sheet with the objective of maximizing return.
© 2005 Al Bawaba (www.albawaba.com)
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