In 2012, Gulf Finance Corporation generated a net profit

of AED 10.0 m, offset by a significant investment of AED 7.1 m in the recently launched Gulf Installments Company in Saudi Arabia and the establishment of SHUAA Credit. In line with its strategy, SHUAA has successfully redeployed parts of its lance sheet to GFC. During the year, Gulf Finance Corporation has applied with the UAE Central Bank for a license to establish an Islamic Window for some of its financing activities with a view to being market-ready in the spring of 2013, subject to regulatory approvals. Gulf Finance was awarded the "Best SME Finance Company" at the 2012 Banker Middle East Industry Awards. This is the second consecutive year that Gulf Finance has been recognized for its SME lending activities. Asset Management- The Asset Management business, which manages SHUAA's investment funds, private equity funds, as well as discretionary portfolio mandates, recorded revenues of AED18.0 m in the year under review (FY2011: AED23.8 m) and a net profit of AED1.8 m (FY2011: AED5.2 m). Q4 saw revenues of AED4.2 m (Q4 2011: AED6.3 m) and a profit of AED2.1 m (Q4 2011: AED2.6 m). SHUAA's flagship funds, the Arab Gateway Fund and the Emirates Gateway Fund, continued to outperform their peers and benchmarks. The Arab Gateway Fund returned 9.02% in 2012, outperforming its benchmark, the S&P Pan Arab Composite Index, by 5.1%. The Emirates Gateway Fund also outperformed its peers with a performance of 30.94% in 2012, 3.85% above its benchmark, the S&P UAE Composite Index. SHUAA Credit is working closely with the Asset Management team on the development of credit products to be launched in 2013. In the second half of the year, SHUAA closed its SHUAA Partners Fund following the sale of its two remaining investments generating an IRR of 7.6% over its investment period. During the Fund's vintage period, from 2005 to 2012, public equity markets in the UAE (MSCI UAE Index) posted a decline of 78%. SHUAA Capital was chosen as the Best Asset Manager in the United Arab Emirates by EMEA Finance for the third consecutive year. Early in 2013, the Emirates Gateway Fund was voted "UAE Equity Fund of the Year" by MENA Fund Manager for the second year in a row. Investment Banking- In Q4, revenues were AED1.8 m (Q4 2011: AED0.7 m) and the division recorded a loss of AED0.7 m (Q4 2011: loss of AED2.5 m). The Investment Banking Division recorded annual revenue growth of 64% to AED11.2 m (FY2011: AED6.8 m) and improved its bottom line by 90% to a net loss of AED1.4 m (FY2011: loss of AED14.4 m). In April, SHUAA was joint-lead manager on the successful IPO of NMC, a leading integrated UAE healthcare provider. This was notable for being the first ever Abu Dhabi company to list on the London Stock Exchange. Towards the end of 2012, SHUAA entered into a Memorandum of Understanding with PT Pratama Capital Indonesia regarding collaboration between the two firms, to offer a variety of investment banking services to issuers and investors in the UAE and the Republic of Indonesia. Also, towards the year end, SHUAA was appointed financial advisor to Urbanos Group, Portugal's leading ground handling and logistics company. SHUAA was appointed to offer support and advisory services for business development and funding requirements as Urbanos establishes its hub in Dubai and builds out its operations regionally. (MORE) PRNEWSWIRE/ASIANET VSS 02111735 NNNN