The Gulf Investment Corporation (GIC) announced a 66% percent increase in profit for the year 2010. Net income grew to USD 151 million in comparison to USD 91 million in 2009. The General Assembly meeting reviewed and approved the audited financial statement in the meeting that took place last Thursday 24th March 2011 in Kuwait.

The Chairman of the Board H.E. Dr. Zakaria Ahmed Hejres commended the solid performance saying: “In 2010, GIC achieved well on multiple dimensions that include increased profitability, enhanced capital base, improved liquidity and leverage levels and better risk profile. In tandem with these improved financial performance indicators, GIC successfully executed important principal investment projects in the GCC region, and completed several initiatives that contributed to optimizing asset allocation, strengthening risk controls and enhancing overall corporate governance. These achievements distinguish GIC as a winner in the region. GIC’s solid financial strength and established regional franchise provide a platform for future growth. I see a bright future for GIC. ”

Net Operating revenues grew by an annual 46% to US$ 223 million, driven by revenues from GIC’s core business activities. The corporation’s capital base was further strengthened through revaluation gains and realized profits. As of 31st December 2010, total shareholders’ equity stood at US$ 2,117 million, a year-on-year increase of US$ 367 million, representing a 21% growth. The enhanced capital base, combined with improved overall asset quality, augmented capital adequacy ratios resulting in a Tier 1 capital ratio of 30%. Noteworthy, the balance sheet continues to be conservatively leveraged at about 2.7 times, reflecting a lower risk profile. At the year end 2010, GIC maintained ample liquidity, with cash and equivalents of US$ 654 million, on top of other liquid assets of nearly US$ 3,000 million.

Commenting on the Corporation’s notable performance, Mr. Hisham A. Al Razzuqi, Chief Executive Officer, stated that “The year under review was an excellent one for GIC in several aspects. The sustained improvement in profitability and financial strength over the past two years reaffirm the corporation’s success in overcoming challenging operating environments and reflect GIC’s inherent resilience. It is gratifying to note that all business lines performed well during 2010, exceeding revenue targets, while conforming to desired risk profiles. Whilst steadily improving all key financial performance indicators, we are also able to expand our business and regional franchise. Going forward, I am confident that the strong foundations which we have anchored will enable us achieve our objectives and goals to the benefit of our shareholders and to the region we serve.”

Established in 1983, GIC is a regional financial institution owned by equally by the six GCC states. It strives to provide a comprehensive range of financial services that support the development of private enterprise and economic growth in the region. GIC managed to achieve a number of major projects throughout GCC countries with diversified activities covering different sectors via financial, petrochemical, steel, power, communications amongst others.