April 1st 2013: The Gulf Investment Corporation (GIC) announced today that during the year ending 31st December 2012, delivered a healthy net profit of US$ 131 million despite challenges that characterized the year including the continued sluggish global economy and widespread policy and market uncertainties and the massive sovereign and banking debt crises in the Eurozone and fiscal contraction in the US economy.
Commenting on the GIC performance, Mr. Khaled Al-Khattaf, the Chairman of the Gulf Investment Corporation Board said: “GIC maintained a good performance under adverse global economic and financial conditions. Virtually all GIC realized key financial indicators are well above target levels. With a capital base in excess of US$ 2.3 billion at 31st December 2012, Tier 1 capital ratio was at a solid 31%, well above regional and international minimum requirements. Other positive attributes of the balance sheet included high liquidity levels and a strong funding profile, and assets grew moderately at 7%. Sound enterprise risk management, effective internal control frameworks and good corporate governance will continue to be important elements of corporate strategy”.
Mr. Al-Khattaf added: “In addition to commitments made to ventures in existing sectors, the GIC business team is also exploring the viability of investments in novel sector niches including agri-business, healthcare and education. Through its strive and determination, we will continue to be a key player in the sustainable development and advancement of the GCC economies while concomitantly realizing competitive returns on its investments.
He concluded by stating that “GIC will continue to contribute significantly to human resource development in the GCC region by providing exemplary on-the-job training opportunities through the transfer of knowledge from our diverse global counterparty pool, and by establishing requisite training programs for young professionals. It is our objective to introduce and impart international best practice concepts to the regional talent pool”.
Established in 1983, Gulf Investment Corporation is a regional financial institution owned entirely and equally by the six GCC states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. GIC provides a comprehensive set of financial services that support the development of the private enterprise and foster economic growth in the Gulf region. GIC has emerged as a regional leader in its chosen fields, and has successfully promoted and developed projects in the GCC across a range of sectors, including financial services, petrochemical, metal, power, utilities and communications.