Kuwait City, 6 April 2015: Gulf Investment Corporation (GIC) announced its financial results for the year ended 31 December 2014, posting net profits of USD 201 million. GIC’s net income is 23% higher than the prior comparative year. This announcement follows the approval of GIC’s financial results by its 31st Ordinary General Meeting held on 5th April, 2015, at GIC’s headquarters in the State of Kuwait.

The improved profitability levels, driven by the good performance of GIC’s key business lines: capital markets and direct investments, represent a return on equity of 7.6%, compared to 6.7% for the previous year.

Shareholders’ equity grew 7% to reach USD 2.7 billion by the 2014 year-end. With a conservative financial leverage of 1.9 times, GIC enjoys a solid financial position, and low risk profile.

Commenting on these commendable results, H.E. Abdul Kader Askalan, Chairman, said: “For GIC, 2014 was a year of multiple achievements. These include increased levels of profitability, enhanced capital base, improved liquidity ratios, lower risk profile, and increase in net positive cash flows. Operationally, several initiatives were implemented that optimized utilization of corporate resources. Investment strategies were reviewed and developed, while risk management systems and corporate governance frameworks were strengthened. We believe these achievements distinguish GIC as a leading regional financial institution.

“The three notch upgrade by Moody’s, and the two notch upgrade by Fitch during 2014 endorse the soundness of our business model.”

Mr. Ibrahim Ali AlQadhi, Chief Executive Officer, commented saying, “The excellent performance of GIC during 2014 can be mainly attributed to the investment mix that diversifies risks and income sources. It is gratifying to note that all business lines performed well during the year, exceeding the planned targets. With 70% of total investments, covering capital markets and direct investments, allocated to the GCC, GIC affirms its commitment to the region.

In line with our mandate, and strategic goals, GIC will continue to focus on GCC investments through capital markets and direct investments”. Mr. AlQadhi added: “We look forward sustaining our positive performance, and will strive to continue achieving our goals.

Gulf Investment Corporation, incorporated in the state of Kuwait in 1982, is fully and equally owned by the governments of the six member states of the Gulf Co-operation Council (GCC) – United Arab Emirates, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait, with a paid-up capital of USD 2.1 billion.