Abyaar, a joint venture between Kuwait’s Aayan Leasing and Investment Company and Al Rashdan Group, said it was set to raise its capital by 100 per cent to finance its expansions and the ongoing projects.

Announcing the decision at a press conference, Marzooq Al Rashdan, Abyaar vice president and managing director, said the board has recommended a capital increase to be open to current shareholders at a rate of 100 fils, and an issue premium of 25 fils per share.

Abyaar will seek official approval and call for a general assembly meeting within the next three weeks, with the preliminary outlook indicating mid-December as a suitable time to launch subscriptions to the mentioned capital raise.

Al Rashdan pointed out that the Abyaar's first nine-month net profit had jumped 95 per cent to hit KD24.3 million ($90 million), when compared to KD12.4 ($46.3 million) for the same period of 2007.

Abyaar’s total assets at book value amounted to KD230 million, while assets at 'conservative' market value amounted to KD480 million.

The company's loans and liabilities make up 30 per cent of total assets, which is a small percentage according to the norms of the real estate development sector, he added. 

He said the company had a clear plan for expansion, and has made actual expansions in the region from its starting point in Dubai.

Al Rashdan pointed out that Abyaar had projects worth Dh25 billion ($6.8 billion) in the UAE of which 85 per cent is under construction.

"This helps boosts the confidence of our shareholders and investors, and proves our commitment to completing work on the ground," he added.-TradeArabia News Service