The major founders of Finance House are amongst the most prestigious financial institutions in the UAE.
Abu Dhabi, January 2, 2004 - Chaired by H.H. Sheikh Khalifa Bin Zayed Al Nahyan, Crown Prince of the Emirate of Abu Dhabi, Deputy Commander of the Armed forces of the UAE and Chairman of the Abu Dhabi Emirate Executive Council, The Executive Council issued its approval for the incorporation of “Finance House” as a public joint stock company capitalized at AED 200 million.
The establishment of “Finance House” has also been approved by the Central Bank of the UAE, Ministry of Commerce and Trade and the Abu Dhabi Municipality.
Following a detailed study of the market in the UAE, the major Founders of “Finance House”, Abu Dhabi Investment Company and the National Investor launched “ Finance House” as an integrated finance company providing comprehensive financing products and services to individual, corporate and government clients.
The major founders of Finance House are amongst the most prestigious financial institutions in the UAE. Abu Dhabi Investment Company “ADIC” was established in 1977 as the UAE’s first investment company. While the National Investor “NI” is a leading private investment company that has an impeccable track record in incorporating a number of successful public companies in the UAE market.
In addition to ADIC and NI, a large number of government, semi government, corporate and individual founders are participating in the incorporation of Finance House. This will help attract quality clients to the company and will provide support from an important segment of affluent corporates and individuals.
The Founders are subscribing for 45% (AED 90 million) of the company’s capital and 55 % (AED 110 million) will be offered to public subscription in April. A number of banks will participate in the offering, as well as and for the first time, a number of brokerage firms registered with both Abu Dhabi Securities Market and Dubai Financial Market, in an attempt to facilitate the procedures of public subscription for investors. Public subscription shall be available for UAE nationals only.
“Finance House” is expected to benefit from being a public company with strong founders and a broad investor base, in addition to being a fully integrated finance company which will draw on the financial strength and technical expertise of its major founders.
The mission of the company is to provide high quality and unique financing and investment products and services that meet the requirements of a cross segment of society by employing the best financial expertise and using modern technology in away that will achieve high returns for investors.
“Finance House” will operate its business from its headquarters in Abu Dhabi and intends to have branches in the major cities of the UAE.
Mr. Hareb Al Darmaki, Chairman of Abu Dhabi Investment Company, said: “The financing services market in the UAE and the region, in general, is an active and vital market that generates lucrative returns and rapid growth for the companies operating in it.
“Finance House” is considered the first fully integrated finance company in the UAE and the first finance company based in Abu Dhabi. The activities of the company will include taking deposits from corporates and public institutions in addition to providing retail and commercial financing targeting medium sized corporates and individuals, and issuing letters of credit and guarantees. Real Estate financing in not considered a priority for the company at the time being due to the increased competition, low margins and the long tenor of loans in this sector.
Regarding the “Finance House” capital base, Mr. Al Darmaki said: “It was possible to raise a larger capital, but the size of AED 200 million was carefully decided upon following a detailed study of the required financial resources of the company according to its business plans, and in light of the rules and regulations of the Central Bank of the UAE”. He also asserted that the most important measure of success for any company is the return to equity. Further, the current capital size will not constitute a hurdle to growing the company’s activities in the future, mainly due to the close relations it enjoys with its strong major shareholders.