Global Investment House – Jordan (Global – Jordan) announced the signing of a mandate with Rum Tourist Transport Co. (Rum), one of the leading tourist transportation companies in Jordan, to establish a charter airline company specialized in covering short haul destinations throughout Europe and the MENA region.
The agreement was signed by the Head of Investment Banking at Global-Jordan, Mr. Sami Nabulsi, and Mr. Riad Khashman, Rum's Chairman of the board, in the presence of Captain Jihad Irshaid, as a representative of the new company under establishment. As stated by the agreement, Global-Jordan is mandated to play the role of both the financial advisor and the lead manager of the new company's future equity fundraising endeavors.
Rum was established as a public shareholding company in May 2006 with a paid-up capital of JD8 million, and it currently operates under the umbrella of Rum Group. The group consists of Rum for Tourist Transportation, Rum International for Tourism and Travel, and Rum International for Hotels; and it provides a wide selection of tourist services that includes, but is not limited to, hotel accommodations, tourist agencies, transportation for tourists, and the selling and marketing of tourist programs abroad.
According to Mr. Nabulsi, "this agreement sheds light on Global-Jordan's conviction that the founding of a qualified company specialized in the field of aviation and air transport will provide much added value to both the tourism and transportation sectors in Jordan." Nabulsi added that, "By establishing this company, Rum Group is positioning itself to become a market pioneer, delivering a truly comprehensive mixture of tourist services across the board."
Mr. Riad Khashman said that the company is currently finalizing the procedures required to obtain the necessary license to operate the charter service, highlighting that it has already received a preliminary approval from the respective authorities. Khashman expects the new company to commence its operations in the second quarter of the coming year, indicating that the company will be purchasing and operating Airbus A-320 and A-321 airliners that will cover short-haul destinations between Jordan and Europe. He also maintained that in line with its goal of increasing Jordan's market share of tourism relative to its neighboring countries, the company will aggressively market Jordan abroad, aiming to attract a larger number of tourists to Jordan.
Khashman reiterated his confidence in Global-Jordan's aptitude for successfully completing the deal stating that, "Global-Jordan's distinction in its investment banking services made it our number one choice to play the role of lead manager and financial advisor".
Furthermore, Captain Jihad Irshaid stated that the establishment of the new company comes in response to growing market demand for charter airlines, adding that the company's planes will be fully equipped with the best tools and equipment to guarantee the travelers' comfort and provide high quality services with an upgraded level of safety and security. Irshaid maintained that the company is looking to establish itself as a low-cost carrier, hence making it the first Jordanian company to offer services of that kind.
With over 65 employees and total assets exceeding JD35 million, Global-Jordan is growing to be a full-blown investment company providing services in asset management, investment banking, wealth management, research, and brokerage. Global-Jordan's Investment Banking division provides a wide array of services that include private placements, M&As, privatizations, advisory services, and initial public offerings (IPOs) to name a few.
About Global Investment House “Global”
Global Investment House “Global” is a full-fledged investment company incorporated in 1998, and falls under the regulation of the Central Bank of Kuwait. Its underlying foundation is to meet the high expectations of local and international clients, and to enhance the investment service industry and the capital market in Kuwait and the region. Today, Global stock lists on the Kuwait, Bahrain, Dubai and London Stock Exchanges. Global plays an important role in promoting investment opportunities in the MENA region to investors through expert financial engineering, in-depth research and reports to advance the capital market in the region. Thus, Global’s achievements have been recognized on local, regional, and international levels. The company’s current assets under management reached KD2.7 billion (USD 10.2 billion) by 30th September 2008.
