Global Investment House
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Mana K. Al-Ghunaim
(Vice Chairman & Group CEO)
Bader Al Sumait
Global Investment House (Global) is an investment company incorporated in 1998, and falls under the regulation of the Capital Markets Authority of Kuwait. In late 2008 and early 2009 Global was hit by cash flow problems affecting its operations in several countries. Kuwait's Global Investment House 2010 loss $260 million.
Today, Global is an unlisted shareholding company, however the stock used to be listed on the Kuwait Stock Exchange (delisted as of 19 June 2013) and on the Bahrain Stock Exchange, with branches and affiliates in Bahrain, Dubai and Abu Dhabi (UAE), Jordan, Qatar, Turkey and Saudi Arabia.
Media and Industry Reports
Global’s assets under management as of December 2014 were KD 1.188 billion (USD 3.6 billion).
The Company still struggles with mark-to-market losses due to its proprietary investments although these have been ring fenced in a Bahrain-based Fund with the assets pledged to the creditors and are slowly being divested. The value of these assets are independently valued on a regular basis however the assets are long term investments that need time to mature before they can be sold. The ongoing litigation with The National Bank of Umm Al Qaiwain remains outstanding with a potential amount of about US$ 300mm being recoverable. The ongoing litigation remains outstanding as of July 2012 (with the decision once again being the subject of an appeal) with the firm (and the creditors) desperately holding onto the hope of one day receiving these monies. Fee-generative business lines continue to suffer both in terms of the general ongoing financial crisis and in terms of a general under performance of the Kuwait market. The lack of Government support for the Financial Sector as a whole has hurt the fledgling Investment Banking industry within Kuwait (see Investment Dar) and this stance is not likely to change in the near term.
On 22 December 2008, following Standard and Poor's downgrade of their debt to "speculative default" from investment grade a week before,it was reported that the company defaulted on $200 million in loans, and that HSBC had been appointed to deal with renegotiating this and other debts.
Despite the default, Global continued to pay all interest on outstanding debt obligations (no longer the case as of 2012)which many similar companies in the region have not done.