Principal Investments & Treasury

Global began its principal investment operation in 1999 with a KD9.0 million seed capital, as a part of Global's first expansion plan outside Kuwait.  The division undertakes a broad array of investments for Global's own account in the GCC and wider MENA region and, to a limited extent, in other emerging markets such as India, Pakistan, Turkey and Malaysia.

Global's Principal Investments & Treasury division undertakes the following activities for Global's own account:

Co-investments in its managed funds with its clients:

The division co-invests with its clients in the funds managed by its Asset Management division domiciled in Kuwait to comply with a Kuwaiti regulatory funding requirement for managed funds, which requires a fund manager to invest at least five per cent. of the fund's commitment value and act as a general partner of the registered fund. 

Strategic investments for its geographic expansion:

The division manages Global's investments in sectors and countries that are considered to be of strategic importance to the Company.  Through these investments, Global aims to achieve geographic expansion and gain exposure to new PE/PIPE investment opportunities.

Private equity and private investment in public equity:

Global makes PE/PIPE investments for its own account. Global looks for opportunities where a combination of revenue growth and margin enhancement is expected to generate an increase in value in the medium-term. These investments are originated from the GCC and wider MENA region and other emerging markets such as Pakistan, India and China.

Proprietary trading:

The Treasury group within the Principal Investment & Treasury division manages Global's proprietary trading in equity stock (long positions only).  It also manages the Company's capital, liquidity and foreign exchange activities. 

Investments in fixed income securities:

As a part of its operations, the Treasury group invests for Global's own account in fixed income securities, including bonds and floating rate notes.

Loans and Advances and Murabaha Receivables:

Treasury group provides loans and advances to a number of fund and portfolio management [and brokerage] clients, who typically finance [60 to 70] per cent. of their investments through margin borrowing. [These activities include providing Murabaha financing, a form of purchase price financing that is Sharia-compliant, to its fund and portfolio management service clients.

The Company's treasury group is placed in this division, and manages Global's capital, liquidity and foreign exchange activities. The treasury group is responsible for Global's proprietary trading and fixed income investments as well as loans and future trade financings for margin customers.