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					                        Investing in Qatar
                 “The Amwal Experience”




Khaled Hassan Rashed
                 Khaled Hassan Rashed
Qatar Economic Forum
                 Qatar Economic Forum
April 18th, 2006
                 April 18th, 2006
            Table of Contents


• Investing in Qatar
  Investing in Qatar


          • Investing in Amwal


                   • Advising on Investing




                                             2
  Qatar – “An Opportune Time to Invest”


                                                    Reasons to Invest

  Real GDP growth is estimated at 6.9% in 2005                       GDP per capita is estimated at US$ 45,085 in 2005

                                                                                                                                 45,085
                                            9.9%

                                    8.5%                                                                                38,290
                                                                                                             33,920
                      7.3%
                                                   6.9%                                     30,870
                                                                                 29,180


             4.5%




             2001     2002          2003    2004   2005E
                                                                                  2001       2002             2003       2004    2005E

  Net FDI Inflows (US$ million)                                      Current account balance is estimated at 36.1% of GDP
                                                      677                                                                        36.1%

                             603           623

                                                                                                                      26.1%
                                                                                                     24.4%



             279                                                                    15.8%




             2001            2002          2003       2004                           2002            2003             2004       2005E

                                                                                                                                          3
Source: Economist Intelligence Unit, World Investment Report 2005, QNB
  Qatar – “An Opportune Time to Invest” (Cont’d)

                                                     Reasons to Invest

  Oil & gas contribution to GDP is estimated at US$ 25.2                Stock market capitalization as % of GDP increased by
  billion in 2005                                                       225% in 2005
                                                     25,244                                                                                        550.0%




                                            17,678

                                 14,318
                     11,183                                                                                                          225.3%
            10,110                                                                                               193.8%   205.2%
                                                                                                138.5%

                                                                                  40.3%


             2001     2002           2003    2004    2005E                         Oman         Bahrain           UAE      Kuwait      Qatar       Saudi
                                                                                                                                                   Arabia
  Brokerage – Total Value Traded (US$ million)                          Market index rose by 70.2% to reach 11,053 in 2005
                                                              $28,242                                                                       32
                                                                                                                           30              $86.1
                                                                                                            28

                                                                                     25


                                                                                                                          $40.5


                                            $6,345                                                       $25.9

                          $3,220
                                                                                    $10.5
          $883

          2002                2003            2004             2005                 2002                 2003             2004             2005

                                                                                    Market Capitalization (USD billion)      Number of Companies

                                                                                                                                                            4
Source: Economist Intelligence Unit, World Investment Report 2005, QNB, related Stock Market
  Investment Opportunities in Qatar – Asset Management



                             • MENA IPO Fund
                               Targeting IPO and Pre-IPO investment opportunities in addition to taking
                               strategic minority stakes in listed companies in the MENA region.



                             • Islamic Private Equity / Mezzanine Fund
   New innovative              Structuring Shariaa compliant funds to cater to the increasing number of
                               investors seeking to participate in the Islamic Finance space.
   funds catering
   to investors
   with different
                             • Regional Real Estate Fund
   risk/return                 Facilitating investors’ participation in the GCC real estate boom and
   profile                     reducing their risk exposure by investing in a diversified regional real
                               estate fund.


                             • Fixed Income Fund
                               Catering to investors who wish to preserve capital and get a fixed rate of
                               return per annum. The fund will invest in Certificates of Deposits,
                               Treasury Bills, Bonds, and other fixed income products.




Source: Amwal’s Management                                                                                  5
  Investment Opportunities in Qatar – Investment Banking
   Key Segment           Opportunity          Comments
                                              • Groups may divest their business due to generational issues, strategic
                             Divestment         focus or to diversify shareholder base. Investment Banking firms can
                                                advise them on viable exits with minimum risk
   Family Groups
                                              • Investment banks can also advise business groups on partnering with
                             Partnerships       PE funds to benefit from their value creation discipline, corporate
                                                governance, compliance, etc

                                              • Companies may sell their non-core business for strategic reasons such
                             Corporate          as concentration on core businesses or region. Investment banks will
                             Refocus            facilitate the sale process.
   Multinationals
                                              • Alternatively they may require the services of an investment bank to sell
                             Distressed
                                                part of or all their business for financial reasons or to raise capital for
                             Sale               organic and acquisitive growth

                                              • Fragmented nature of industries and regulatory changes such as WTO
                             Consolidation      and GATT are likely to fuel consolidation and M&A advisory will be a key
   Small/Medium
                                                value added service provided by investment banks
   Enterprises
   (SMEs)                                     • Credible management looking for opportunities to own a stake in their
                             Management
                                                business will approach investment banks to find a suitable private equity
                             Buy-outs           sponsor

                             Sector           • Investment banks with sophisticated research and market knowledge
   Sector                    Liberalization     will be able to provide clients on investment opportunities arising
   Liberalization/                              because of sector liberalization
   Privatization                              • Investment banking firms will play a key role in the facilitation of the
                             Privatization      potential privatization drive that the government will undertake providing
                                                advice to both buyers and sellers.

Source: Amwal’s Management                                                                                                    6
             Table of Contents


• Investing in Qatar



           • Investing in Amwal
               Investing in Amwal


                       • Advising on Investing




                                                 7
   World Class           International    Significant         Hospitable
Financial Services       Connectivity    Human Traffic   Business Environment
   Critical Success Factors for Setting up an Investment Bank




                                                           Governance
                                                           Corporate
                                                 Critical Success
                                                      Factors

                                                             Approach
                                                             Proactive




 Source: Amwal’s Management
Source: Abraaj Capital Analysis                                                 8
 Amwal from inception to date



                1998 - 2002                  2003 & 2004                2005                      2006



      • Formation of QLIC –        • Abraaj & Shuaa          • Proactive               • Market leaders in
        Qatar Ladies                 Capital acquire           management                investment banking,
        Investment Company           stake in Amwal            approach by               asset management and
                                                               shareholders              financial planning
      • Infusion of seed           • Infusion of fresh
                                                             • Capital increased to
        capital by prominent         international
                                                               QAR 162.5 million       • New corporate identity
        Qatari institutions and      capital from new
        individuals                  investors
                                                             • Introduction of new
                                   • Asset Management &        grading and
      • Obtaining License                                      compensation structure
                                     Investment Banking
        from QCB
                                     introduced
                                                             • Expansion of team to 50
      • First line of Business -
                                   • Re-branding of Amwal      investment
        Financial Planning
                                                               professionals
                                   • Launch of proprietary
                                     portfolio
                                                             • First mutual fund
                                   • Al Mahfatha portfolio     launched – Qatar Gate
                                     launched                  Fund

                                   • Formation of key
                                     committees
Source: Amwal’s Management                                                                                        9
  Evolution of Amwal 1998 - 2002

   Strong                    • Founded by the most progressive Qatari Institutions including Qatar National
                               Bank, Qatar Navigation and Qatar Foundation under the leadership of
   Shareholder                 Sheikha Hanadi – Vice Chairperson and Managing Director.
   Base

   Financial                 • Seed capital was provided by Qatar National Bank, Qatar Navigation, Qatar
                               Foundation and prominent Qatari individuals.
   Capital

                             • Opportunity to cater to the investment needs of Qatari ladies offering savings
   Market
                               plan, insurance, investment and protection plans.
   Opportunity

   Proactive                 • Top-down niche approach through intensive market research and analysis of
                               clients investment needs.
   Approach

   Human                     • Skilled investment professionals with expertise in financial planning were
                               hired to execute.
   Capital

   Corporate                 • Internal policies & procedures were put in place to ensure corporate
                               governance and compliance with QCB regulations.
   Governance

Source: Amwal’s Management                                                                                      10
  The Evolution Continues… 2003 & 2004

   Strong                    • Two of the most reputable regional investment houses, Abraaj Capital and
   Shareholder                 Shuaa Capital from the UAE took a stake in Amwal through a pioneering
                               Private Equity and M&A transaction in Qatar.
   Base
                             • Infusion of fresh capital through foreign direct investment (FDI) by regional
   Financial                   firms, Abraaj Capital and Shuaa Capital.
   Capital

                             • Significant opportunity in asset management with specific focus on investing
   Market                      in the expanding equity market in Qatar due to easing of restrictions and
   Opportunity                 incentives for companies to list on the DSM.

                             • Addition of 2 new business lines – Investment Banking and Asset Management
   Proactive                 • Launched proprietary investment portfolio.
   Approach                  • Launched Al Mahfatha portfolio – The first investment portfolio in Qatar.

                             • Hired experienced Director and Business Development executives for
   Human                       Financial Planning.
   Capital                   • Seasoned investment professionals hired for the two new divisions.


   Corporate                 • Formation of key committees such as Audit and Risk committee to
                               supplement the executive committee.
   Governance

Source: Amwal’s Management                                                                                     11
  The Evolution Continues… 2005

    Strong                   • Based on their strong belief in the business, shareholders took a more hands-
    Shareholder                on and pro-active approach and seconded highly skilled managers to further
                               build on the strong foundation of the company.
    Base

    Financial                • Capital increased to QR. 162.5 million to facilitate acquisition opportunities in
                               investment banking, asset management and financial planning sectors.
    Capital

                             • Booming IPO market in the GCC fueling appetite for Mutual Funds investing
    Market                     in the same.
    Opportunity              • M&A and private equity deal flow increasing.


   Proactive                 • First mutual fund (‘Qatar Gate Fund’) was launched for both Qatari nationals
                               and expatriates to invest in the DSM and the regional markets.
   Approach

   Human                     • The team was doubled by hiring investment professionals representing more
                               than 15 countries. Together they bring over 100 years of combined
   Capital                     investment banking and asset management experience.

   Corporate                 • Enhanced the overall organization structure in terms of grading and
                               compensation to reflect high standards of corporate governance, international
   Governance                  best practices and ethical standards.

Source: Amwal’s Management                                                                                         12
             Table of Contents


• Investing in Qatar



           • Investing in Amwal


                       • Advising on Investing
                         Advising on Investing




                                                 13
  Investment Banking Track Record



                             • Exclusive underwriter in Qatar for one of the largest IPOs (QAR 1.2 billion).
                             • First underwriting assignment outside Qatar for Amwal.
    Ithmaar Bank
                             • Successfully executed the transaction in a record time of three weeks
                               over-subscribing the issue 3 times




                             • Investment banking advisor on asset allocation and capital deployment.
    Doha
    Insurance                • M&A advisor on potential acquisitions and investment opportunities.




    Salam                    • Advisor to Salam International Investment Limited.
    International            • Conducted a valuation of the company.
    Investment               • M&A advisor on a potential merger with parent company.
    Limited



Source: Amwal’s Management                                                                                14
  Asset Management Track Record – Proprietary Portfolio


                                                                   Performance Statistics
                                                                                                                                       531        530
                                                         Proprietary Fund                            DSM Index                                           519

                             Jan-04 to Dec-05:                 403%                                    115%                                                   503

                             2005 Growth:                      148%                                     43%


                                                                                                                                373
                                                                                                                         357
                                                                                                                  334
                                                                                               316

                                                                                                            297
                                                                                         279          282

                                                                                                                                            227   226
                                                                              232              211                                                      214
                                                                                                                                      224
                        195 188                                                         192           195 192                                                  215
                                                                        203                                             207    204
                                                                 201
                                    181   185   182      177 182                  163
                       142                                       142    151
               137           134   129    133 138     135 135
         117
                 131
   100
 100       115
   Jan- Feb- Mar- Apr- May- Jun-          Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun-                         Jul- Aug- Sep- Oct- Nov- Dec-
    04   04   04   04   04   04            04   04   04   04   04   04   05   05   05   05   05   05                           05   05   05   05   05   05

                                                               Proprietary Fund         DSM Index



Source: Amwal’s Management                                                                                                                                           15
  Asset Management Track Record – Al Mahfatha Portfolio

                                                                                                                                                                                            333
                                                                                                                                                   328
  AL-Mahfatha                                                                            DSM Index                                                                              327                     329



                                                                                                                                                                        302
   Performance Statistics                                                  Performance Statistics
                                                                                                                                                                                                               292
   Jun-03 to Dec-05: 189%                                                  Jun-03 to Dec-05: 141%                                                 286
                                                                                                                                                                                    282                          289
                                                                                                                                                              279
   YTD                               :      61%*                           YTD                          :          36%*
                                                                                                                                                                                            252   252

                                                                                                                                                                  251                                    240
                                                                                                                                                   236                                250
                                                                                                                                                                    233
                                                                                                                                                                                                                 241
                                                                                                                                                           221
                                                                                                                                                                              230
                                                                                                                                                 218
                                                                                                                                    214
                                                                                                                                                                  217




                                                                                                                             179          189
                                                                           168                                         171
                                                                                                                                    177
                                                                                                      164
                                                                                  160          159           161 161
                                                              157                        155                                 167
                                                                                                       164
                                                                                                159                159
                                                                           156                               158
                                                                                  153 153
                                                        141         150

                                     123          126         136
                                            123
                 118         114
                       111                          124
        110                                 121
                                      117
  100    101                    107
100              107    103
  Jun-    Jul-   Aug- Sep-    Oct-   Nov-   Dec- Jan-     Feb-      Mar-   Apr-   May- Jun-    Jul-    Aug- Sep-   Oct-   Nov-     Dec- Jan-   Feb- Mar-   Apr-   May- Jun-    Jul-   Aug- Sep-   Oct-    Nov-    Dec-
   03     03      03   03      03     03     03   04       04        04     04     04   04     04       04   04     04     04       04   05     05   05     05     05   05     05      05   05     05      05      05


                                                                                        Al-Mahfatha Portfolio                DSM Index


Source: Amwal’s Management                              *As of December 2005                                                                                                                                             16
   Asset Management Track Record

                             • First mutual fund in Qatar, launched in July 05
   Qatar Gate                • Funds under management: QAR 130 million as of Feb 06
   Fund                      • Focused on equity investments in listed companies in Qatar
                             • First fund to be established in Qatar open to both nationals & expatriates




Source: Amwal’s Management                                                                                  17
  Amwal – The Company of Firsts!!!!


     1.      First investment company to be licensed by QCB

     1.      First investment company catering exclusively to Qatari Ladies

     1.      First Independent Financial Planning Provider in Qatar

     1.      First investment in Qatar by institutional private equity players: Abraaj
             Capital and Shuaa Capital

     1.      First investment company to attract FDI in Qatar

     1.      First to launch an investment portfolio in Qatar: Al-Mahfatha Portfolio

     1.      First to launch a mutual fund registered in Qatar open for investment to
             Qataris and Expatriates: Qatar Gate Fund

     1.      First company to underwrite an a non-Qatari IPO: Ithmaar Bank




Source: Amwal’s Management                                                               18
INVEST IT RIGHT, AMWALIZE IT