Kuwaiti lender to set up bank in UAE

Global Investment House, Kuwait's biggest investment bank by market value, is on track to set up an investment bank next year in the UAE with investment firm Al-Qudra Holding after it receives regulatory approval, Global's Chief Financial Officer Sunny Bhatia said.

Global aims to get the approval by the end of the year so it can "focus on the real business" next year, he said.

Kuwait's Global Investment House said it wants to start a financial services firm in Malaysia this year as part of an expansion plan that also includes new forays in the booming Gulf.

Kuwait's biggest investment bank by market value is in talks with a partner in Malaysia to set up the firm in the fourth quarter, Bhatia told Reuters, declining to identify the partner or give details. "It will be investment banking, asset management and brokerage," he said in an interview late on Tuesday, declining to be more specific.

Global wants to start a brokerage business in Saudi Arabia "soon" and move into Qatar next year, making the oil-producing region the main focus of its expansion strategy, Bhatia said.

Global, whose second-quarter net profit soared 96 per cent, aims to double investment banking fee income this year from 7.7 million dinars in 2007, he said.

In the first six months, investment banking fee income reached KWD11.5 million (Dh159m).

"Investment banking is an area of focus for us," Bhatia said, adding that Global expected an "excellent" profit in 2008. The investment bank posted net profit of 91.4 million dinars last year.

"We are on track for growth. We are optimistic," he said, declining to give a profit forecast for this year.

Global, which offers advisory services and buys into firms, raised $1.15bn this year by selling global depositary receipts (GDRs) in London.

Assets were roughly flat at $9.4bn at the end of the first half but should rise after a recent string of share placements, he said.

Global raised $600m with partners to start a Saudi realty firm. In June, it raised $500m for a private equity fund listed in London to finance expansion in the region. Global, which is also present in Bahrain and Egypt, has said it wants to develop its brokerage business after buying 70 per cent of Kuwait's First Securities Brokerage in May. On Tuesday, it launched a real estate company with a capital of KWD30m.