(MENAFN- Arab Times) ILegacy Global of the UAE has acquired Bayt Al Mal Investment Company of Kuwait. Last week officials of both companies signed the final closing contract.
After receiving the approval of Kuwait Capital Markets Authority (CMA) for the transaction, the contract was signed in the presence of Sheikh Khalid Bin Ahmad Al-Sowaidi, the well-known Qatari businessman, who is Chairman and Managing Director of ILegacy Global, and Adnan Abdul Aziz Al-Bahar, Chairman and Managing Director of The International Investor KSC in Kuwait. The signing took place in the presence of Sulaiman Al-Qimlas, CEO of Bayt Al Mal Investment Company, and AbdAllah Yousuf Al-Saif, Member of the Board of ILegacy Global.
Commenting on the event, Khalid Bin Ahmad Al-Sowaidi said: "The Company has obtained the Kuwait CMA's approval for the acquisition, which is consistent with the ILegacy Group's strategy to expand in the region. Bayt Al Mal Investment Company owns a majority stake in The Investor for Securities Company (INVESCO) of Saudi Arabia, awarded the title "Best Saudi Investment Company - 2012" from Arabian Business magazine."
Aim
"The aim of the Bayt Al Mal acquisition is to provide a solid foundation from which to develop an international Group specializing in providing integrated financial services to help unlock the hidden potential of the Awqaf sector. As well as financing and managing Waqf projects, services will include the provision of custodian and trustee services and promoting investment funds.
Our objective is to provide a good yield to shareholders and investors, at the same time increasing the return on Awqaf assets for the benefit of Waqf beneficiaries," he continued.
ILegacy Group targeted a Kuwaiti company whose operations are conducted in strict compliance with Islamic Shari'a rules. The company has extensive experience of Investment Management in the GCC and Arab countries, and is an ideal platform from which to develop the Group's services to the Awqaf sector.
The Group had earlier decided that acquisition of a fully operational and profitable company from which to develop its Awqaf services was preferable to the lengthy time required in setting up an entirely new entity for this business and would enable dividends to be channeled to investors earlier than otherwise.
Al-Sowaidi expects the new Group to realize competitive returns for shareholders, as well as contributing to the benefit of the community at large by increasing the return on Waqf assets," he added.
"The Group is the world's first commercial entity established to allow governments and individuals to benefit from developing unutilized Awqaf assets. The implementation of this plan is in line with the State of Kuwait's strategy to execute the Amiri vision of transforming Kuwait into a global financial and commercial center, as well as supporting the development plan projects," he elaborated.
This plan is consistent with the interest of the Arabic and Islamic Governments in endowments and Awqaf, and for the benefit of Muslims at large. This is best evidenced by the special care given by the custodian of the two Holy Mosques, King Abdullah Bin Abdul Aziz Al Saud to develop Awqaf in the Kingdom of Saudi Arabia and across the Islamic world.
"The role of the Group is complementary to, and does not conflict with that of Awqaf Ministries, as the Company will seek to support and upgrade Waqf assets, which have not been utilized over past years," he explained.
"The Group also anticipates protecting and maintaining Waqf properties and assets by developing and increasing the productivity of such assets, thus maximizing revenues, enhancing returns, reducing administrative expenses, and providing professional management services," he continued.
"In addition to allocating the revenues to their rightful beneficiaries in a lawful, Shari'a-compliant manner that matches the Waqf objectives, it will allow expansion of beneficiary segments. The Company therefore aims at solidifying confidence in Waqf by reviving the Sunnah of Waqf and encouraging the creation of new Awqaf," he exhibited.
"Worldwide Awqaf assets are estimated conservatively at hundreds of billions of dollars, and include substantial undeveloped real estate, which has not been re-valued for years. Current yields on these assets are insignificant and can be substantially enhanced through investment and professional management," he noted.
"By providing access to professional Islamic Investment experts and investing in unutilized and neglected Waqf properties, the ILegacy Group will enhance the return on these and other assets maintained by Awqaf Foundations," he said.
Regarding the ILegacy Group, Al-Sowaidi stated that "he and his group had been successful in attracting major investors from the GCC and the Middle East. In addition, Dr Saad Hamad Al-Barrak has been appointed Deputy Chairman of ILegacy and Sulaiman Nasser Al-Qimlas, CEO of Bayt Al Mal," he added.
There exists a Shari'a Board for Bayt Al Mal Investment Company as well as for its subsidiary company. There also exists a Shari'a Executive Committee for all investment funds and products that are issued. We therefore conduct all of our operations in strict compliance with Shari'a Law.
In another development, Al-Qimlas stated that Bayt Al Mal Investment Company has been nominated as the "Best Kuwaiti Investment Company - 2012" according to World Finance Magazine.
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