IFA: KD99 millions realised profit and KD54 million unrealized

Published April 3rd, 2006 - 07:04 GMT

Jassim M. Al-Bahar, Chairman and Managing Director, International Financial Advisors (IFA), announced that the company has achieved a record profit in 2005 of KD 172 million including the Minority Interests. Al-Bahar said that the net profit for IFA was KD153 and the realised profit reached KD99 million while the unrealised profits were KD54 million.


Al-Bahar added that this profit was a result of the strategic investment plans adopted by the Board and implemented by its management. This effective implementation of the IFA’s strategy can be clearly seen in its investment in the Hospitality field since the acquisition of the company mid 2002. Throughout the past three and a half years, IFA invested in the Tourism field in <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Dubai and was the first Kuwaiti company to invest in Palm Jumeirah Dubai with and investment of US$1 billion. IFA expanded through alliances and joint-ventures with Kingdom Hotel Investments Group (KHI), chaired by H.R.H. Prince Alwaleed Bin Talal Bin Abdulaziz Al Saud, which was successfully listed on the Dubai International Financial Exchange (DIFX) and in London in March 2006. IFA also formed strategic alliances with Moreland Developments (Pty) Ltd, Fairmont, Mövenpick, Kempinski, Sun International in South Africa in addition to Sheraton in Portugal. The company also acquired YOTEL which specialises in low-cost business class-style hotels.


This successful strategy also resulted in the listing of IFA Hotels & Resorts on the Kuwait Stock Exchange (KSE) on January 3, 2006 and on the Johannesburg Stock Exchange in South Africa.  It is noteworthy to mention that in September 2005, IFA was the first Kuwaiti company to list on the Dubai Financial Market and enabled the company to increase its profits from KD 750, 000 in 2001 before the acquisition to KWD 153 million in 2005.


The financial details for 2005 were as follows:





Net profit

153 million

27 million.


Earnings per share

522 fils

91 fils


Total assets

404 million

221 million


Shareholders’ equity

209 million

85 million



Al-Bahar said, “IFA’s strategy is built on the diversity and variety of investment tools that are spread across several geographical areas, lending flexibility to the investment by spreading and minimizing the investment risks and giving a higher Return On Investment to the company. The strategy also involves allying with leading groups in different investment and real estate operations covering GCC and the Middle East regions, Europe, Africa and Asia.


In 2005, we focused on investment funds that performed exceptionally during the year. IFA Khaleeji Fund achieved a 91 % profit and IFA Investment Fund achieved 102 % profit, when the market’s average performance was 80%, and it distributed 100% on shareholders of the fund units. In spite of the decrease witnessed in the KSE in the first quarter, down to 14%, IFA Investment Fund only decreased by 4%.


“I am very optimistic about the future in spite of the fluctuating market performance in the Gulf in the past months. Such performances are normal and should be dealt with wisely, while keeping a close watch on economic standards and developments. The investment policies adopted by the company, including its policy for diversifying investments, will protect it from political and economic instabilities Apart from the expansion plans undertaken by IFA in the Middle East, Africa and Europe, the company plans on investing in the United States and East Asia to achieve greater success and continuously provide investors with a return on their investments and achieve the goal of transforming IFA from a local and regional company to an international company,” Al-Bahar concluded.


IFA HOTELS & RESORTS – www.ifahotelsresorts.com


IFA Hotels & Resorts (IFA HR) is a leader in the development of premier integrated and mixed-use hotel and tourism resort projects throughout Europe, the Middle East, the Indian Ocean region and Africa


Listed on the Kuwait Stock Exchange, with a market capitalization of US$ 1.3 billion, IFA HR’s main shareholder is Kuwaiti based International Financial Advisors (IFA). IFA Hotels & Resorts South Africa is also listed on the Johannesburg Stock Exchange as of February 27, 2006.


IFA HR projects and investments in Dubai include The Fairmont Palm Hotel & Resort, the Fairmont Palm Residence (www.fairmontpalmresidence.com), the Crescent Resort on the PalmIsland (to be managed by Fairmont Hotels & Resort), The Palm Residence (Al Nabat and Al Haseer), the Palm Golden Mile (www.thepalmgoldenmile.com) and the Mövenpick Hotel & Residence Laguna Tower Dubai (www.lagunatower.com).  IFA HR’s other projects are the Kempinski Alabadiyah Hills in Beirut (www.abadiyahhills.com), a shareholder in the Four Seasons Hotel in Beirut, the Zanzibar Beach Hotel & Resort (www.zanzibarbeachresort.com), the Zimbali Coastal  Resort & Zimbali Lakes  (www.zimbali.co.za), the Zimbali Lodge (www.zimbalilodge.co.za), the Fairmont Zimbali (www.fairmontzimbali.com), shareholder in 5 Lonrho Hotels in Kenya (www.lonrhohotels.com) and in YOTEL (www.yotel.com), which owns two YOTEL hotels in Heathrow and Gatwick, United Kingdom.  IFA HR is also the force behind the super-premium Sheraton Algarve Hotel (www.luxurycollection.com) and Pine Cliffs Resort (Portugal) (www.pinecliffs.com), part of Starwood’s Luxury Collection.


Globally, IFA HR have entered into strategic alliances and Joint Venture partnerships with leading companies such as Kingdom Hotel Investment Group (Saudi Arabia), Nakheel (UAE), United Investments Portugal, Savills (United Kingdom), a strategic alliance with RCI (part of the Cendant’s Group) and Moreland Developments (Pty) Ltd (South Africa).


IFA HR aims to link its resorts to new parts of the globe, such as the US, the UK, Mauritius, Eastern Europe and the Far East. This will offer investors and tourists access to world class facilities through a network of hotels, residential resorts, vacation and residence club destinations.


IFA HR programme of brand acquisition and developer partnerships will continue into the future and is evidenced by the ever growing strength of its product range:


        IFA - Hotels & Resorts

        IFA - Lifestyle Membership Clubs

        IFA - Vacation Ownership

        IFA - Fractional Ownership

        IFA - Hotel Ownership

        IFA – Residences

        IFA – Travel & Tourism


This unique product range enables IFA HR to continuously anticipate and deliver to the varying property investment and leisure requirements across the globe.


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