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Dar Al-Maal Al-Islami Trust
Annual Report 2014
In its first full year of operation,
IICG’s 73% owned subsidiary,
Gulf Investors Asset Management
Company (GIAMCO), a Saudi closed
joint stock company registered in the
Kingdom of Saudi Arabia, performed
satisfactorily. In an environment
where the decline in the oil price is a
critical factor, GIAMCO successfully
launched four funds; two public,
Deem Saudi Equity Fund and Deem
Liquidity Fund and two private, Deem
Al Madina Real Estate Fund and
Deem Real Estate Opportunities
Fund. Total funds undermanagement
reached a creditable SAR 377 million
($100 million) at 31 December
2014. GIAMCO’s expansion
strategies include: increasing
profitability by rationalising and
strengthening its internal processes
and supporting infrastructure,
expressly enhancing the company’s
IT operations; reinforcing its public
image; improving customer service;
and diversifying its product range
to increase its competitiveness
and market share in its target
operational areas. DMI recognises
the importance of GIAMCO’s key
role in the Group’s future and
eagerly looks forward to the further
development of its client base.
Following the aforementioned
asset swap with DMI, the Group’s
managed funds now own a 48%
interest in Faisal Islamic Bank of
Egypt. In 2014 FIBE experienced
another year of exceptional results,
performing in line with targeted
levels and results of the previous
two years. This notable achievement
came during a year mixed with
international insecurities, including
a significant decline in oil prices and
uncertain local political conditions.
Encouraging positive factors,
accomplished through governmental
structural and financial reforms,
however, offset this with continuous
declines in inflation and Egypt’s
improved ability to save funds and
attract investments. In December,
Fitch Ratings raised Egypt’s credit
assessment to “B” with a stable
outlook, the first upgrade in the
country’s credit rating since one
was assigned in 1997.
FIBE’s net profit before tax of EGP
1,278 million ($181 million)
represented an increase of 1.5%
over the prior year. Again the Bank
achieved double digit growth in
total assets of 10.5% to EGP 50
billion ($7 billion) at 31 December
2014. Total equity amounted to
EGP 3,721 million ($520 million)
as compared to EGP 3,239 million
($466 million) in the prior year.
This year fully confirmed the
effectiveness of the five year banking
strategy, which commenced during
2013, with the implementation of
products offering both local and
foreign currency to clients of all
income levels. During the year,
FIBE reached 1.1 million managed
bank accounts. Retail banking grew
not only geographically with two
new branches but also developed
additional services for clients by
expanding credit card and ATM
access. It is encouraging to
announce that following approval
from the authorities last year, FIBE
founded Faisal Financial Securities,
an Egyptian joint stock company,
which will provide financial
brokerage services to the Bank and
its clients. FIBE is confident that the
year’s activities and its long term
strategic mission will ensure its
growth and expansion and continue
to satisfy its shareholders well into
the future.
I would again on behalf of the
Board of Supervisors like to thank
our participants for their continued
support, the Religious Board for
its counsel and guidance and the
staff for their commitment and
dedication.
Allah is the purveyor of success.
Mohamed Al Faisal Al Saud