IFA holds tourism assets in Europe, South Africa, and the Middle East and has plans for the Maldives, Mauritius, and Zanzibar

ursuing a broad investment profile, the firm’s success is based on a responsibility to its shareholders and to its employees

Local finance group International Financial Advisors (IFA) is doing more than its fair share in promoting the development of Kuwait and the wider region. With millions of dollars tied up in a whole range of investment projects it is a key player in making the economy tick. Making things happen comes easy for Chairman and Managing Director Jassim M. Al-Bahar. After taking the company over from the government in May 2002 it has transformed its fortunes from a modestly profitable concern into a major player. During the first full year of operation it turned the company around.

From making a loss during the first half of 2003 it went on to make a profit of $81 million in the first quarter of 2004. “That did not happen by accident,” he says. “We have a strategy. We know where we are going and our responsibility is to add shareholder value.” That is exactly what the company did. “In 2003 we gave 40% cash dividend, 40% share dividend, and an increase of 20% in the capital of the company.” It means the company has experienced rapid growth since it was privatized. “The company started with about $50 million – with the capital increase we have taken this to $100 million. Hopefully we will go on doing this.”

JASSIM M. AL-BAHAR Chairman and Managing Director of International Financial Advisor

IFA has been very active on the local Kuwait Stock Exchange, following mergers and acquisitions, and pursuing high growth sectors like tourism. It holds a range of tourism assets including a stake in the flagship Palm Jumeirah development off Dubai. It also boasts extensive interests abroad. Its first overseas foray was in 1985 with the establishment of the Sheraton Algarve in Portugal. “From a strategic point of view our aim is to be present in Europe, in the Middle East, and in South Africa, all of which we are in already.” There are further plans for the Maldives, Mauritius, and Zanzibar.

Mr. Al-Bahar has confidence in the local economy but believes the development of Kuwaiti tourism is still embryonic. The situation in Iraq still exerts an influence. “That does not mean there are no future projects in Kuwait,” he says. “Nevertheless let us not deceive ourselves – what tourists are going to come here when we have the Iraq situation next door? Once there is stability then we can concentrate on Kuwait too.”

The future looks promising, however. The government is revising many of the country’s tax laws in a bid to entice more interest from foreign investors. “Kuwait today should be ready to seize the opportunities that are opening up. But for true opportunities to arise there has to be stability in Iraq.”

Mr. Al-Bahar believes Kuwait has always been something of a leader in terms of investment, and as a centre for innovation and business. This is a role that he wants to continue through his own organization, alongside the direction of the government. He supports efforts to attract new investment into the country. “With the present drive of the government to revise the commercial and tax laws and thereby attract foreign investment, we are reasonably confident that Kuwait will take a leading role and will reoccupy its historical position of leadership in the different areas of investment.”

Although globalization has become a modern day buzzword, IFA is simply continuing the trend started by Kuwaiti traders many years ago. “What we are doing is an extension. Kuwaitis were global traders even before globalization. We had nothing before oil – our ancestors were in dhows going to India and East Africa. We are the modern seafarers of our ancestors.”

The human factor remains an integral part of the company’s strategy. At the heart of the company’s development is its commitment to teamwork and support for its employees. “In a nutshell our responsibility is to our shareholders and to our employees. If you take care of them you take care of your company.”