International Financial Advisors

The banking sector in Kuwait has been conservative in their approach when it comes to lending due to some restrictions from the Central Bank. Of course it varies by bank and size but overall the approach has been conservative and we believe 2010 should be a good year for shareholders and the owners of the banks.

The financial stability law passed in 2009 stipulates the government will guarantee 50% of new loans from local banks to productive sectors.  Do you think measures taken by the government helped buffer Kuwait’s financial sector from the effects of the global economic downturn?

No, I don’t think so.  The actual implementation of this law has been weak because it hasn’t applied to 80% of the private sector (local equity and real estate) but rather to small sectors.  We have not seen a lot of lending so it didn’t stimulate the economy it just gave a boost of confidence to the market.

In your opinion what should be done to further stimulate lending in Kuwait and to facilitate your operations?

Actually delivering on recent promises that Kuwait will start developing infrastructure projects and government spending in the country will automatically stimulate the economy. Opening lending in the private sector will have this effect as well.

IFA covers a wide range of activities including Financial Advisory Services, Brokerage, Strategies in local and international securities, Asset Management, and the development of Hotels and Resorts.  How are going to market yourself and what has been the feedback of your customers so far?

Our core business in real estate and financial services and our focus has always been on the emerging markets.  We are unique in real estate and hotels and resorts because of what we provide and the areas that we cover geographically.  We bring different products to the market and for example, we were one of the first companies to introduce fractional ownership and condo-hotel ownership with fixed returns.  We also invested in Yotel cubical hotels and we are increasing activity in this sector, IFA is attracted to things that are new.  In terms of our financial services we try to bring international standards to regional financial markets and we would like to gain the confidence of foreign institutions and bring them into our market.

In the real estate and finance sector what markets have you entered?

IFA covers the globe in developed and emerging markets.  Our Financial services cover the GCC & Mena regions through our offices in Kuwait, Dubai, Lebanon, Egypt, Syria and Jordan. As for our Real Estate services it is divided into two segments ,the resorts segment which covers Dubai, Lebanon, South Africa, Portugal, Seychelles, Zanzibar, Tanzania and Thailand, While our Hotel segment represented by the luxury cubical hotel concept called  (YOTEL) is operating in the United Kingdom,  the Netherlands and North America.

You are in a highly competitive market so how do you compete with other plays on the market and what is your competitive advantage?

We are different.  In real estate and on the resort side we offer different products and we offer high-end, luxury branded hotels and apartments.  We were the first in the region to introduce a residential brand, residential ownership, condo-hotel ownership, fractional ownership, and branded hotel concepts into markets without international branded hotels (like Namibia).  On the financial services side we cover a young, new market with a lot of potential.  There are a lot of investors who want to invest in this type of emerging market and the key is giving them the confidence and the right information for them to do so. 

What is your financial strategy?

We took over IFA in May 2002 with assets equaling around 50 million dollars.  Today this amount is 1.7 billion dollars because shareholder equity grew ten times in 8 years even after the decline in the market. Our strategy is to continue growing IFA and finding new sectors that will help us achieve that growth.

What is the outlook for 2010?

I think it will be a positive year because looking at the other markets I feel we are much stronger.  The fundamentals are there, the growth is there, and the market has a long way to go.  I also think the region will see a positive year for 2010 as well. 

How would you define IFA’s strategy for the next five years and how do you envision IFA in the future?

When someone mentions investing in emerging markets I would like to see people think of IFA as the place to work with.  We want to see institutions knocking on our doors so we can provide them with the resources necessary to invest in the market. We want to be a leader in providing financial services, advice, and investment opportunities in emerging markets and being the preferred partner. 

How do different institutions approach you to invest in emerging markets?

Usually they have seen our projects, heard about us from others, or they have invested with us in different sectors and want to invest in the region. 

Do you consider yourself the leader in Kuwait?

We consider ourselves one of the leaders in Kuwait.  Kuwait in unique in that there are three or four big groups in Kuwait who can provide a diverse opportunity and we believe we are one of them.

What is your main challenge at IFA?

The challenge is continuing growth at the same pace that we have grown in the past because this is very difficult.  Continuing to find the right opportunities and grow as a company will be a challenge.

Can you elaborate on corporate social responsibility?

We try to do what we are capable of.  We are active in sponsoring charity foundations and we have a team that takes care of activities falling under corporate social responsibility. 

What is your final message about Kuwait?

Kuwait is an interesting country to invest in and it has a solid economic foundation.  There is a lot of opportunity due to our strategic geographical location near the three largest economies in the region.  The business environment in Kuwait is very accommodating and there is a lot of entrepreneurial spirit in Kuwaiti companies..