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First Bahrain, a rising star among the region's real estate firms, announced a net profit of $17.7 million for 2007, a 29 per cent improvement on the company's performance in 2006, at its annual general meeting.
Given this financial achievement the board decided that it was appropriate to begin dividend payments to the company's shareholders, recommending 10 per cent dividend, half of which would be paid in cash and half in shares. The company now has a paid up capital of 30 million Kuwaiti dinars. The return on equity (ROE) achieved was 12.5 per cent.
Speaking after the announcement of the company's performance, First Bahrain chairman Ahmed Al Bahar said: "First Bahrain has laid solid foundations in 2007, forged through strong collaborative and strategic relationships and a commitment to both international best practice and our core Shariah principles. Our three-year plan is on target and we're confident and excited about our future growth within the marketplace."
First Bahrain general manager Amin Al Arrayed added: "First Bahrain's solid track record of achievement and success is underpinned by the commitment and dedication of the internationally qualified management team. Each member is highly skilled in all aspects of real estate development, from long-term investment strategies to project construction, ensuring professional involvement at every stage of project development.
"The opening of two new offices in Bahrain and Kuwait has been a significant milestone in the growth of First Bahrain.
"They have enabled us to develop a solid investor base in both countries whilst an increasingly liberal economic environment is driving increased foreign direct investment in both countries."
The success of 2007 has paved the way for many ambitious projects. First Bahrain's flagship $450 million Seef Project in Bahrain will comprise office buildings, residences and a Shariah compliant five star hotel. In addition, approval was obtained for a subdivision of the Seef plot which was subsequently sold netting a significant return.
First Bahrain also successfully acquired land for the Bahrain Investment Wharf, a $25 million project comprising warehousing and logistics facility situated on 43,000 square metres near the new Shaikh Khalifa Port at Al Hidd.
A key priority for this year is the expansion of the company's operations across the region, as set out in its corporate plan. First Bahrain's focus on developing both its commercial portfolio and its human capital over the past 12 months has afforded the company a "robust platform" to achieve the broader goal of a listing on the Kuwait Stock Exchange (KSE).
Mr Al Arrayed thanked staff, at all levels, in both Bahrain and Kuwait for the commitment, drive and dynamism members had shown during the past year.
"To the board, I offer a very sincere thank you. My thanks also go to our strong base of Middle East investors for their unyielding support over the last few years," he said.
