(MENAFN- The Peninsula) Doha: Some organisations see the portfolio strategy as a top-down statement of aspirations. For others, the portfolio is merely a bottom-up accumulation of available projects. The place where top-down aspirations meet bottom-up realities is where the details of Al Faisal Holding's (AFH) foreign portfolio decision comes into play.
Al Faisal Holding 'AFH, the major shareholder of the region's fastest growing conglomerate Aamal Company Q.S.C, has been fast expanding its global footprints over the past few years through its hospitality investment arm Al Rayyan Tourism Investment Company or ARTIC. ARTIC owns a portfolio of 24 hotels located in Mena, Europe and the US.
With less than half a dozen properties in the US, including in Washington DC, Miami, Chicago and Manhattan, AFHis looking for more deals that complement its business objectives. 'The US market has always been an attractive one for foreign investors for many reasons including a stable economic and political environment, access to advanced technologies and innovations, and supportive government policies and regulations.We are optimistic for a continued rise in our investment returns there in the coming years, Sheikh Mohamed bin Faisal Al Thani, Vice-Chairman of Al Faisal Holding, told The Peninsula in a rare interview.
Sheikh Mohamed, who holds a degree in business administration from Carnegie Mellon University, is also the Vice Chairman of the QAR 8.5bnworth Aamal.
ARTIC is geographically diversified so that our investments are not concentrated in one region. AFH's medium term plan is to broaden the footprints of its investment portfolio in addition to the potentialfloatation of the company on one of the leading international stock exchanges. Ever since the establishment of ARTIC in 2003, its core objective has been to grow by expanding its operations beyond the borders of Qatar, both regionally and internationally. ARTIC's focus is on creating a diversified investment portfolio of prime, world class hotel assets in terms of brand, commercial strength, architectural and design quality, location and profit opportunities across its operations, he said.
Another AFH business focused on international expansion is Al Faisal International for Investment (AFII) which has recently acquired 78.46 percent stake in Banif Bank in Malta. Al Faisal International for Investment is expanding its activity in the financial services sector across several geographies. This includes through organic growth, strategic alliances and, where appropriate, acquisitions.
On AFH's interests in Emerging Markets (EMs) Sheikh Mohamed said EMshave their opportunities and challenges. Emerging markets are rapidly becoming the driver of global growth.
According to the reports of last year, emerging-market economies grew marginally faster than developed nations and we believe this growth advantage is likely to expand again in the coming years. 'We always seek investment opportunities that are in line with our long term objectives. We have a good balance of investments that are based in emerging markets and developed markets. Asia is of particular interest and we are open to opportunities given the positive outlook for the region.
On the value returns from global investments, Sheikh Mohamed said: 'Our remarkable expansion into new markets in the recent years is an indication of successful investments that are generating positive returns.Our presence in diversified markets has allowed us to benefit from the different opportunities they each offer. We are very proud of what we have achieved so far, and we are looking forward to continue our expansion plan into new markets that offers positive returns.
Explaining how the low rate scenario was influencing AFH's foreign interests, Sheikh Mohamed said the low interest rates are encouraging its investment decisions.
'With our solid financial position as well as our excellent lender relationships, we are well positioned to take advantage of the current environment for our future expansion. This will have a positive impact on the return on investment. However, we follow a conservative approach to leverage and always maintain an appropriate balance which doesn't expose us to any risk of over leveraging our assets.
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