Press Releases

19 February 2006

The Board of Directors (BOD) held its ordinary meeting on 19/02/2006 and made the following decisions

First: Financial Results for 2005:

The BOD reviewed the financial results and achieved profits for the year 2005 including the profits of Salam Group, which merged recently into Salam International. The BOD decided to delay the announcement of profits for 2005 as a protection for shareholders rights until the Ministry of Economy & Commerce approves the listing of the new shares.

Second: The ownership of 15% in Ejada's Company:

The BOD decided to invest in Ejada by acquiring 15% of the company, one of the largest integrated IT services and solution provider in the MENA region. It designs and delivers integrated IT solutions such as consulting, application development using advanced methods and technologies, system integration, IT facilities management, enterprise application integration, business service management including IT security and IT infrastructure management for the banking and finance, oil and gas, telecom, government and general business sector. Ejada operates from its head office in Riyadh through branches in Jeddah, Al Khobar, Amman, Cairo, Alexandria, Dubai and Abu Dhabi and its partners in Beirut, Kuwait, Yemen and Oman. With the joining of Salam International, Ejada will expand its business to include Qatar and other countries. In addition, Salam's joining comes along with Injazat Technology Fund, which also owns 10% of Ejada. Injazat Technology is one of the funds that are operating in compliance with Shari’a principles. In addition, the fund is one of the steering arms of the Islamic Corporation for the Development of the Private Sector, an affiliate of the Islamic Development Bank.

Third: Gulf Facilities Management Company:

The BOD approved a joint venture with Dr. Sasse Facility Management (GmbH) to establish a company for facilities management called "Gulf Facilities Management". Dr. Sasse Facility Management (GmbH) is a German Company specialized in Facilities Management. Salam International will own 51% and (GmbH) will own 49%. The significance of the new established company comes with the booming of Construction and Development for the Infrastructure of Qatar. With the lack of specialized companies for facilities management in Qatar, higher demand for high quality services is required for Real Estate sector, infrastructures, shopping centers and administrative buildings, such as maintenance and security.

Four: Exclusive Franchise Operation for DE BEERS Company:

The BOD approved the International Master Franchise Agreement with DE BEERS. DE BEERS specializes in selling and marketing gems & diamonds and it is one of the leading companies in this field. In addition, DE BEERS have a high market share in the world for diamond products with high quality. Salam International was granted the exclusive rights and franchise to operate a DE BEERS franchise operation in a broad geographic area that includes local and duty free markets in Qatar, U.A.E, Saudi Arabia, Kuwait, Bahrain, Oman, Lebanon, Syria, Iraq, Jordan, Yemen, Iran, Turkey and Cyprus. Salam International will have the right-upon the agreement-to own and manage exhibitions and license sub-franchisees to operate a DE BEERS franchise operation in the territory mentioned above.

Five: Rotana Radio:

The BOD approved to constitute a new corporation with Rotana Audio Visual in Qatar under the name of “Rotana Radio Qatar Station”, which will come after granting Salam International the permission from authorities. In addition, the BOD approved the mutual agreement, which was signed between Salam International and Rotana Audio Visual. Under this agreement, Rotana Audio Visual shall give the right to use the name “Rotana Radio” to the new corporation.

Six: Board Elections:

The BOD approved the announcement for shareholders who are interested and qualified for nominating themselves to run for board elections. The board elections will take place in the next general assembly meeting.

Seven: Board of Directors Meeting:

The BOD decided to call for its next meeting as soon as the approval from the Ministry of Economy and Commerce is granted concerning the listing of the new shares, in order to:

  • Assign a venue and date of the General Assembly Meeting and the Agenda.
  • Announce the consolidated financial statements for the year 2005, along with the merged companies.
  • Assign the plan for the distributed profits for the year 2005.
  • In addition, other terms.