Abu Dhabi Investment House (ADIH) made a net profit of $5 million last year in spite of the global financial slowdown.

'We are very pleased with the 2009 positive results given the challenging economic environment we currently operate in,' said managing director Rashad Y Janahi.

'This success is attributed to ADIH's clear strategy and resilient business model where risks were mitigated given the extensive research and due diligence work conducted throughout.

'Also, by raising provisioning requirements, we will be better positioned to weather any further turbulence from the economic downturn.'

The board is recommending a five per cent cash dividend.

'This year's results are a reflection of ADIH's prudent methods and entry into diversified real economy sectors that haven't been affected by the financial crisis,' he said.

'Total income for 2009 was $56 million. Total assets rose by 4 per cent compared to 2008 to reach $435 million while total equity reached $248 million recording a 4.6 per cent return on capital with $0.02 earnings per share.'

'The great results in the light of a strained financial market are testament of the board's strategy to position ADIH as the investment house of choice within the Middle East, North Africa and South Asia region,' said chief executive officer Fawaz Ali Al Jowder.

'We have incorporated the Abu Dhabi 2030 Vision within our strategy to diversify our investment product offering especially in real economy sectors and empowering our human capital.'

The Al Wataniya Development Fund was launched during the year to develop a commercial office building in the heart of Abu Dhabi's business district.

The fund was successfully closed after receiving significant interest from investors and the project is currently being implemented.

Wellpharma Holding, ADIH's investment arm in healthcare and pharmaceutical sectors, launched the Wellpharma Medical Solutions Fund in November.

The fund will invest in the development and operation of a local production facility that will specialise in the manufacturing and distribution of high-quality intravenous solutions for medical treatments.

During last year, ADIH was able to conduct two fund exits, a partial exit from the Porta Reef fund and a full capital exit from the Beirut Gate fund.

Sales activities in some of the ADIH projects were affected by the current market conditions where delay in payment was experienced and payment extensions were requested by developers.

ADIH projects are currently being implemented as planned in Abu Dhabi, Bahrain, Qatar, India and North Africa - with 95 per cent completion in Porta Reef, 80 per cent completion in Areen Homes, 60 per cent completion in Sunset Hills as well as the ongoing progress of infrastructural work in Qatar Entertainment City and India Entertainment City.-TradeArabia News Service