Copyright Paul Shaffner, Iringa, Tanzania
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Congratulations to Dr Nawal Khalifa Al Hosani and Ms. Ruba Yousif Al Hassan.
The Financial Sector in the GCC
“Considering the current difficult circumstances, there needs to be an even greater effort from everyone to manage and overcome the crisis affecting the regional and international markets. It demands transparency and dedication to lead Gulf Finance House’s activities in coordination with the executive management. I want to continue concentrating my efforts on supporting GFH, and position it for success as we seek to return to profitability. We enjoy fantastic support from the Board and its shareholders and God willing, target returning to profitability in the first quarter.”
Officials at S&P said the regional ratings will generally be higher than their ratings on a global scale.
Gulf Finance House Chairman Dr. Esam Janahi commented today saying “While 2009 proved challenging, it is important to view our results in the context of what prudently managed banks must do in tough economic times. We have closely reviewed all of our assets, made provisions where appropriate and have also begun to dispose of those which are non-core. We have asked management to review our cost base and also to ensure that we have a strategy to grow revenues. It is my strong view that as we achieve these objectives GFH will return to profitability and I am personally focused on this objective.”
Acting CEO Mr. Ted Pretty added “2009 was a year which presented unprecedented challenges to banks in both the global and GCC markets. All institutions have been impacted by declining asset values and by the tightness in liquidity.And now for the comments.
Consolidated Tangible Net Worth Covenant
GFH irrevocably and unconditionally agrees and undertakes that until the Sukuk Certificates have been redeemed in full in accordance with the Conditions, it will at all times maintain a minimum of Consolidated Tangible Net Worth of not less than US$ 400,000,000 (or its equivalent in Bahraini Dinars).
"Consolidated Tangible Net Worth” means, the aggregate of the amount for the time being fully paid up or credited as fully paid up on GFH’s issued share capital, advance towards share capital, share premium, any subsidiary company share grant, statutory reserves, investment fair value reserves, and retained earnings, of the Group, but deducting any treasury shares, and deducting any amounts attributable to goodwill or other intangible assets.
“The British government will stand besides Dubai,” said Mandelson. “We do so not just because of the historical nature of the relationship between Britain and Dubai. We do so because we believe in Dubai, we are an admirer of Dubai and we believe in Dubai’s future. So it’s therefore not just the natural solidarity but it is self interest as well.”
“Dubai has to be conscious of the fact that how it resolves its current problems and how it deals with its creditors will mean a great deal to the Dubai brand, its reputation and how it secures investment from overseas in the future,” he told a gathering of British business leaders in the emirate.
Lord Mandelson’s comments are likely to increase pressure on the Dubai Government to more swiftly conclude the restructuring announced late last year, including a proposed standstill on US$22 billion (Dh80.8bn) of debt.