Khaled Hassan Rashed Qatar Economic Forum April 18 th, 2006 Khaled Hassan Rashed Qatar Economic Forum April 18 th, 2006 Investing in Qatar “The Amwal Experience”

Khaled Hassan RashedQatar Economic ForumApril 18th, 2006

Khaled Hassan RashedQatar Economic ForumApril 18th, 2006

Investing in Qatar

“The Amwal Experience”

2

Table of Contents

• Investing in Qatar

• Investing in Amwal

• Advising on Investing

Investing in Qatar

3

Current account balance is estimated at 36.1% of GDP

4.5%

7.3%

8.5%

9.9%

6.9%

2001 2002 2003 2004 2005E

45,085

38,290

33,92030,870

29,180

2001 2002 2003 2004 2005E

15.8%

24.4%26.1%

36.1%

2002 2003 2004 2005E

Source: Economist Intelligence Unit, World Investment Report 2005, QNB

Qatar – “An Opportune Time to Invest”

CAGR 11.6%

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

Reasons to Invest

279

603 623677

2001 2002 2003 2004

CAGR 34%

Net FDI Inflows (US$ million)

CAGR 31.7%

4Source: Economist Intelligence Unit, World Investment Report 2005, QNB, related Stock Market

Qatar – “An Opportune Time to Invest” (Cont’d)

Reasons to Invest

10,11011,183

14,318

17,678

25,244

2001 2002 2003 2004 2005E

$10.5

$25.9

$40.5

$86.1

28

25

30

32

2002 2003 2004 2005

Market Capitalization (USD billion) Number of Companies

CAGR 25.7%

Stock market capitalization as % of GDP increased by 225% in 2005

Oil & gas contribution to GDP is estimated at US$ 25.2 billion in 2005

40.3%

138.5%

193.8% 205.2%

550.0%

225.3%

Oman Bahrain UAE Kuwait Qatar SaudiArabia

Market index rose by 70.2% to reach 11,053 in 2005

$883$3,220

$6,345

$28,242

2002 2003 2004 2005

Brokerage – Total Value Traded (US$ million)

5

New innovative funds catering to investors with different risk/return profile

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

• Islamic Private Equity / Mezzanine FundStructuring Shariaa compliant funds to cater to the increasing number of investors seeking to participate in the Islamic Finance space.

• Regional Real Estate FundFacilitating investors’ participation in the GCC real estate boom and 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

Investment Opportunities in Qatar – Asset Management

6Source: Amwal’s Management

Investment Opportunities in Qatar – Investment Banking

Opportunity CommentsKey Segment

Divestment

Partnerships

Family Groups

• Groups may divest their business due to generational issues, strategic focus or to diversify shareholder base. Investment Banking firms can advise them on viable exits with minimum risk

• Investment banks can also advise business groups on partnering with PE funds to benefit from their value creation discipline, corporate governance, compliance, etc

Corporate Refocus

Distressed Sale

Multinationals

• Companies may sell their non-core business for strategic reasons such as concentration on core businesses or region. Investment banks will facilitate the sale process.

• Alternatively they may require the services of an investment bank to sell part of or all their business for financial reasons or to raise capital for organic and acquisitive growth

Sector Liberalization

Privatization

Sector Liberalization/Privatization

• Investment banks with sophisticated research and market knowledge will be able to provide clients on investment opportunities arising because of sector liberalization

• Investment banking firms will play a key role in the facilitation of the potential privatization drive that the government will undertake providing advice to both buyers and sellers.

ConsolidationSmall/Medium Enterprises (SMEs)

• Fragmented nature of industries and regulatory changes such as WTO and GATT are likely to fuel consolidation and M&A advisory will be a key value added service provided by investment banks

• Credible management looking for opportunities to own a stake in their business will approach investment banks to find a suitable private equity sponsor

Management Buy-outs

7

Table of Contents



• Advising on Investing

Investing in Amwal

8

World Class Financial Services

InternationalConnectivity

SignificantHuman Traffic

Hospitable Business EnvironmentCritical Success Factors for Setting up an Investment Bank

Source: Abraaj Capital Analysis

Finan

cial

Cap

ital

Strong

ShareholdersP

roac

tive

A

pp

roac

h

Market Opportunity

Human

Capital

Critical SuccessFactors

Co

rpo

rate

G

ove

rna

nce


9

1998 - 2002 2003 & 2004 2005 2006

• Formation of QLIC – Qatar Ladies Investment Company

• Infusion of seed capital by prominent Qatari institutions and individuals

• Obtaining License from QCB

• First line of Business - Financial Planning

• Re-branding of Amwal

• Abraaj & Shuaa Capital acquire stake in Amwal

• Infusion of fresh international capital from new investors

• Asset Management & Investment Banking introduced

• Al Mahfatha portfolio launched

• Formation of key committees

• Proactive management approach by shareholders

• Expansion of team to 50 investment professionals

• First mutual fund launched – Qatar Gate Fund

• Introduction of new grading and compensation structure

• Capital increased to QAR 162.5 million

• Market leaders in investment banking, asset management and financial planning

• New corporate identity

Amwal from inception to date


• Launch of proprietary portfolio

10

Evolution of Amwal 1998 - 2002


StrongShareholderBase

• Founded by the most progressive Qatari Institutions including Qatar National Bank, Qatar Navigation and Qatar Foundation under the leadership of

Sheikha Hanadi – Vice Chairperson and Managing Director.

Human Capital

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

MarketOpportunity

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

FinancialCapital

Proactive Approach

CorporateGovernance

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

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

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

11

The Evolution Continues… 2003 & 2004



• Two of the most reputable regional investment houses, Abraaj Capital and Shuaa Capital from the UAE took a stake in Amwal through a pioneering

Private Equity and M&A transaction in Qatar.

HumanCapital

• Hired experienced Director and Business Development executives for Financial Planning.

• Seasoned investment professionals hired for the two new divisions.

MarketOpportunity

• Infusion of fresh capital through foreign direct investment (FDI) by regional firms, Abraaj Capital and Shuaa Capital.

FinancialCapital

Proactive Approach

CorporateGovernance

• Significant opportunity in asset management with specific focus on investing in the expanding equity market in Qatar due to easing of restrictions and

incentives for companies to list on the DSM.

• Addition of 2 new business lines – Investment Banking and Asset Management• Launched proprietary investment portfolio.

• Launched Al Mahfatha portfolio – The first investment portfolio in Qatar.

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

12

The Evolution Continues… 2005



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

HumanCapital

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

MarketOpportunity

FinancialCapital

Proactive Approach

CorporateGovernance

• Booming IPO market in the GCC fueling appetite for Mutual Funds investing in the same.

• M&A and private equity deal flow increasing.

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

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

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

13

Table of Contents



• Advising on Investing Advising on Investing

14

Ithmaar Bank

• Exclusive underwriter in Qatar for one of the largest IPOs (QAR 1.2 billion).

• First underwriting assignment outside Qatar for Amwal.

• Successfully executed the transaction in a record time of three weeks over-subscribing the issue 3 times

Doha Insurance

• Investment banking advisor on asset allocation and capital deployment.

• M&A advisor on potential acquisitions and investment opportunities.

Salam InternationalInvestmentLimited

• Advisor to Salam International Investment Limited.

• Conducted a valuation of the company.

• M&A advisor on a potential merger with parent company.

Investment Banking Track Record


15

Asset Management Track Record – Proprietary Portfolio


519531

182 177 182

316

297

530

503

188195

117

100

203

282

232

279

201

137

185181

334357

373

215

214226227

224

204207192195211

192

163151142

135135138133129134142

131115100

Jan-04

Feb-04

Mar-04

Apr-04

May-04

Jun-04

Jul-04

Aug-04

Sep-04

Oct-04

Nov-04

Dec-04

Jan-05

Feb-05

Mar-05

Apr-05

May-05

Jun-05

Jul-05

Aug-05

Sep-05

Oct-05

Nov-05

Dec-05

Proprietary Fund DSM Index

Proprietary Fund DSM Index

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

2005 Growth: 148% 43%

Performance Statistics

16

Asset Management Track Record – Al Mahfatha Portfolio

286279

282

329

124

136

150

164159

328

251

107103

101100

333

327

153158

153159

156

107

121117

292

171

179

214

302

289

250

252

230

233

217

221

236

218

189

177

167161161164

159155

160

168

157

141

126123

123

114111118

110

100

240

252

241

Jun-03

Jul-03

Aug-03

Sep-03

Oct-03

Nov-03

Dec-03

Jan-04

Feb-04

Mar-04

Apr-04

May-04

Jun-04

Jul-04

Aug-04

Sep-04

Oct-04

Nov-04

Dec-04

Jan-05

Feb-05

Mar-05

Apr-05

May-05

Jun-05

Jul-05

Aug-05

Sep-05

Oct-05

Nov-05

Dec-05

Al-Mahfatha Portfolio DSM Index


Jun-03 to Dec-05: 189%

YTD : 61%*

AL-Mahfatha


Jun-03 to Dec-05: 141%

YTD : 36%*

DSM Index

*As of December 2005Source: Amwal’s Management

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Qatar Gate Fund

• First mutual fund in Qatar, launched in July 05

• Funds under management: QAR 130 million as of Feb 06

• Focused on equity investments in listed companies in Qatar

• First fund to be established in Qatar open to both nationals & expatriates

Asset Management Track Record


18

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


INVEST IT RIGHT, AMWALIZE IT

Documents

Khaled Hassan Rashed Qatar Economic Forum April 18 th, 2006 Khaled Hassan Rashed Qatar Economic Forum April 18 th, 2006 Investing in Qatar “The Amwal Experience”