Positive outlook

MANAMA: Gulf Finance House (GFH) has received a glowing report from TAIB Research in its latest investment report.

TAIB says it continues to be positive on GFH stock and is reiterating its advice to clients to be overweight in the shares.

"GFH's stock has soared 27.9 per cent from the beginning of this year, as against a rise of 2.4pc in the Bahrain Stock Exchange displaying an ability to outperform the index," the report states.

"Currently, the stock is trading at a price earnings ratio of 8.30 and a price book value of 3.21, making it an attractive investment proposition.

"We believe that riding on the booming Islamic financial sector, the bank will continue to witness strong growth. Its sound fundamentals along with expanding project-base will further enhance its bottom line."

After a successful global deposit receipt and Sukuk listing on the London stock market, GFH has achieved the status of an international blue-chip Islamic investment bank. Today, over 28pc of its shares are held by major international institutional investors, says the report.

GFH's Algerian, Tunisian, Libyan and Asian projects further underline its leadership position in the field of economic infrastructure. Once the $3 billion financial harbour is set-up it will be the first financial centre in North Africa, the report said.

"Within a short span of eight years, GFH has placed itself as a leading regional Islamic investment bank in general and in the business of infrastructure development in particular," the report adds.

"Last year, GFH witnessed record profits on the back of strong growth in its project base, mainly driven by innovative economic infrastructure projects in highly attractive emerging markets, especially in the Middle East, North Africa and Asia.

"Additionally, this solid performance last year also reflects management's continued focus on delivering the strategic objectives of the bank.

"The bank's exit from Energy City Qatar generated a return of 35pc to its investors. Further its infrastructure developments, conceived, planned and currently being implemented in partnership with the governments in Asia and the Middle East and North Africa region have an aggregate estimated development value of nearly $20bn," says the report.