Mawarid Finance acquires Al Jazeera Financial Services

Mawarid Finance has announced the acquisition of Al Jazeera Financial Services, which is specialised in the field of financial intermediation in the United Arab Emirates.

This comes as a first-of-its-kind step for Mawarid since being launched and part of an optimistic plan to expand and acquire a number of successful companies working in complementary or parallel fields to that of Mawarid.

Al Jazeera was launched as a private equity company in Dubai in 2005 with a paid up capital of 30 million dirhams, and is considered to be one of the leading companies in its field and has proved its success since its early stages. It has achieved high profits since starting its operations with a client base of more than 15,000 from different areas in the UAE.

As a financial intermediation affiliate of Mawarid Finance, Al Jazeera will continue with financial intermediation as its main activity through trading companies' shares with activities that complies with the Islamic Sharia'a principles.

The company's activities are concentrated in the Dubai Financial Market and Abu Dhabi Securities Market, where it has reached leading positions among its competitors in terms of trading volumes over the past few years.

Mr. Mohammed Al Neaimi, CEO of Mawarid Finance and Board Chairman of Al Jazeera Financial Services, said: 'This acquisition is the first of its kind for Mawarid in terms of forming successful partnerships with a number of already existing companies, or establishing new complementary companies that will support our core activities within the Islamic finance sector, and this is also part of an optimistic plan to expand and diversify our products and client base in local and external markets.'

Al Neaimi explained that the strategy on which Mawarid was built focuses on expanding into different complementary and parallel fields, and stressed that the company will announce other important expansion activities during the coming period.

He concluded saying that Mawarid is rapidly moving forward with its expansion strategy, though it is considered relatively young after being established not more than a year ago. And this is part of its aims to achieve its objectives and compete with leading players in this field of work in the local UAE and regional markets.

The acquisition of Al Jazeera Financial Services comes after Mawarid Finance recently became an establishing member in the association of leading investors who set up First Investment Bank in Bahrain.

Mawarid Finance makes 5% cash distribution to stakeholders in its first year

Mawarid Finance announced the net profit of Dhs95.1m since incorporation in last quarter of 2006.

Shareholders' equity rose to Dhs1.095bn at the end of 2007, a 9.5% increase on the original value of the shares.

The company's total assets increased by 13.6% to reach Dhs1.136bn at the end of 2007, which shows the consistent development of the company in enhancing its financial position and building its services and operations

Omran Sultan Abdullah Al Owais, Chairman of Mawarid, announced the results during the company's general assembly at the Hyatt Regency Dubai on Monday 21 April 2008. Also attending were the Board of Directors, senior company members and many stakeholders.

Mawarid also advised shareholders of its future plans and the share holders approved the distribution of 5% cash dividends.

Net profits in 2007 of Dhs57.4m were complemented the net profit of Dhs37.7m in 2006. This return came as a result of investments, finance operations and services provided by the company during that period. And what deepens the company more is its full independence, ultimate work flexibility and the capital provided, in addition to its strategy to be a niche player in the Islamic finance industry.

Commenting on the figures, Al Owais said that results had greatly exceeded expectations, indicating that the company achieved its main goals for this period. He also affirmed Mawarid's commitment to continuously work on achieving all its goals that mainly include
providing innovative Sharia'a compliant financial services and positioning the company as a leading Islamic finance company in the region.

'The results achieved are an outcome of the strategies the company implemented in its diverse fields of work, and the most significant is providing creative financial services and products that strictly comply with the Islamic Sharia regulations, in addition to enhancing pioneer investment opportunities. Moreover, creating unique products to service our clients has contributed to positive financial results of the last year.' Al Owais said

Al Owais explained: 'Mawarid Finance gives great importance to diversity of its investment portfolios through contributing directly or indirectly to all promising fields of the country's economy. The company has also adopted the policy of investing diversely by finding opportunities in the country's market and supporting this by building and developing a group of strategic partners'

Al Owais concluded: 'The officials at Mawarid Finance have a deep faith in the national Emirati abilities and they are giving them priority in employment opportunities. That's why we've taken the policy of continuous encouragement and development of our human resources and we also follow a supportive policy for Emiratisation. At the end of 2007, the company achieved 30% Emiratisation.'

Mawarid signs up as Al Nasr sponsor

Mawarid Finance has become a main sponsor of Dubai's Al Nasr Sports Club in a move designed to encourage more sporting participation by UAE nationals.

Mohammed Al Naiami, CEO of Mawarid Finance, described the agreement as part of a wider company plan to support sport in the UAE.

"Our vision focuses on serving the diverse sectors of UAE society, concentrating largely on youth and providing them the ideal opportunities to be pioneers in all fields," he said.

"Sponsoring Al Nasr Sport Club is the best choice for achieving our goals in sport, and will assist in enhancing the club's role at local and regional levels."

Ali Ibrahim, Vice President of Al Nasr, said the deal will contribute to strengthening Mawarid's relationship with the fans of Al Nasr Club as well sports supporters throughout the UAE.

"Since being launched, Mawarid has proved its great commitment to the local community by supporting and enhancing the role of young Emiratis in all fields including sports," he added.

Mawarid Finance is a new private joint stock company established in Dubai, UAE, towards the end of 2006 with a paid-up capital of one billion dirhams, providing innovative sharia'a-compliant financial products and services.

Notes and contacts

About Mawarid Finance

Mawarid Finance is a new private joint stock company established in Dubai, UAE, towards the end of 2006 with a paid-up capital of one billion dirhams. The company plans to introduce a new vision within the Islamic finance sector to both retail and corporate customers in the region.

Mawarid Finance is the only finance company in the UAE that is completely independent. The company's shares are distributed across 352 shareholders, with companies or organisations owning not more than 5% each of the capital and no individual shareholder's stake exceeding 2.5%, giving the company the operational freedom to secure a leading position in the Islamic banking market in the UAE.

Mawarid Finance specialises in the competitive development of Sharia'a compliant financial services, focusing on rapid growth through outstanding customer service.

Mawarid Finance is structured as an integrated financial institution that specialises in providing all services related to finance and business, responsive to the rapid growth taking place in Dubai and modelled on the spectacular development of Dubai and the UAE as a whole.

Mawarid draws its strength from a solid vision for the future articulated by a team of leading industry professionals, a close-knit network of strategic partners and business associates, and the financial backing and support of well-established shareholders.

Mawarid's mission is to create superior and exceptionally innovative Sharia'a- compliant products and services, sustaining high-quality performance and maximising market share to become the first choice provider of Islamic financial solutions in a modern business environment.

About Al Nasr Club

The Victory Sports Club in Dubai is considered the Dean of the clubs of the United Arab Emirates, the club was founded in 1945 when a number of young people gathered and exercised a game of football under the name of (Al-Ahli), and the name changed later to (Victory) in 1960, when a group of youths led by Sheikh Manea bin Khalifa Al Maktoum, the headquarter of the club moved to Al Shindagha, and in the sixties His Highness Sheikh Zayed bin Sultan Al Nahyan visited the club and gave a large gift to the club, and in that period His Highness Sheikh Hamdan Bin Rashid Al Maktoum became Chairman of the Club.

The club moved to the new location and by His Highness Sheikh Rashid bin Saeed Al Maktoum Al Maktoum Stadium opened in 1978., the youth people of the club had exercised number of games by that time till it reached thirteen game nowadays, and won a number of championships in most games, and in particular President Cup and local league more than once.

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