Global Investment House "Global" announced Monday the launch of its Palestine Fund, the first fund in the region aimed at capitalizing on the improving market conditions in the Palestinian market and its openness to foreign investments.
The company made the announcement in a special press conference held by Mr. Omar M. El-Quqa, Executive Vice President at Global, and Mr. Sameer Al-Gharaballi, Executive Vice President at Global, at the J.W. Marriott Hotel in Kuwait.
Mr. El-Quqa said that the company is very excited about the new fund that seeks to take advantage of the encouraging prospects the Palestinian companies and market are showing.
“The Palestine fund will offer institutional and/or individual investors the opportunity to invest in an emerging market that has displayed very positive signs in recent years. Moreover, with the improved political situation there, it promises to be a great environment for investments,” he added.
The fund’s strategy is to invest in listed equity, Pre-Initial Public Offering (IPO) companies, private placement securities, and IPOs in the Palestinian market.
The objective of that strategy is to generate attractive returns, provide capital to companies prior to going public, assist the management with strategic and advisory inputs, and invest in the secondary market.
“This is another breakthrough for our company, which is built on setting new benchmarks and crossing boundaries for better investments opportunities,” Mr. El-Quqa affirmed.
As for the future market conditions, he stated that the company sees the Palestine stock market improving on its current market cap which is was USD4.45 Billion by the end of 2005, an increase of USD1.09 billion from 2004, that is a 200% jump in performance.
“The macro economic conditions and regulatory setup in Palestine are improving and we see likelihood for expansion of the stock market to include new companies.”
Talking about the technical aspect of the fund, Mr. Al-Gharaballi said that the Palestine Dedicated fund size is between USD100-200 million, it is based in the Kingdom of Bahrain and has a minimum investment requirement of USD 50,000.
“The fund is the first of a kind to invest totally in Palestine, as history has demonstrated that those who enter first into an emerging market are the most likely to succeed before other take notice.”
He added that the expected return is 25%, pointing that it has flexible investment terms. “It will distribute dividends annually, whereas subscription is quarterly and redemption is semi-annual after closing date.”
Mr. Al-Gharaballi affirmed that Global is a pioneer in asset management, with a strong track record. “Most of its funds and portfolio managers have delivered exceptional performances that have exceeded relevant market indicators,” he stated.
“Global began investing in the Palestinian market about three years ago,” pointing that, “It owns a substantial stake in Lotus Financial Investments Company in Palestine,” Al-Gharaballi concluded.
Recently, Eurekahedge ranked Global Distressed Fund “3rd Best Hedge Fund in the World” while Barclay Group ranked it “7th Best Hedge Fund in the World.”
