Gulf Finance House resumes Trading

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Gulf Finance House (GFH), a Bahraini Islamic investment bank,resumes trading after eight months of suspension. GFH is traded onthe Kuwait Stock Exchange, the Bahrain Stock Exchange and the Dubai Financial Market. The shares of GFHare also traded on the London Stock Exchange as global depositary receipts.

Thecommencement of trading comes just days after GFHreported a profit of $11.9m in the first three months of the year. GFH was one of the companies in the Gulf that was affected following global crisis. The company made huge profits last year by collecting premiums from investments inmulti billion-dollar property projects and private-equity deals. However, when the investors retreated in 2008 and 2009, the company could not make up for the losses. Following the crisis, GFH was forced to restructure its debts and plan a better business model.

The company is selling the assets it had accumulated during the boom and continues to honour its commitment towardsinvestors inthe property projects. This includes huge Energy City developments in India, Qatar and Libya.

GFH’srecapitalisation, which was floated in October, has attractedover $120m of investment. The share price of GFH last traded fellby 9.6 percent in Dubai to Dh1.70 on thin volumes.

The interruption began after GFH made a request to its shareholders to contribute US $500 million (Dh1.83 billion) to restructure its finances after it landed in trouble following global crisis. The bank alsodecided upon share consolidation in a move to reduce the number of outstanding shares. According to Esam Janahi, the bank’s executive chairman, the company predicts rewards to its investors in the coming years.

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