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Mr. Munib Al Masri “PADICO Will Not Give Up Any Commitment to Invest in Palestine in All Circumstances”

2012-05-15

The General Assembly of Palestine Development and Investment Company "PADICO" approved, in its meeting that took place on 14/05/2012, distributing 6% of the share"s par value as cash dividends, an amount of $15 million for the fiscal year of 2011. Mr. Munib Al Masri emphasized the commitment of PADICO to invest in Palestine in all circumstances. He said:’’ We won’t give up our commitment in all circumstances, for a future that holds success and progress and to enhance the role envisioned by PADICO since its launching, to be at the top of the private sector, achieving sustainable development in the Palestinian economy as an important part of the efforts to achieve the readiness for an independent Palestinian State. And we will always be faithful for this commitment ’’. Mr. Masri added:’’ the year 2011 was a special year for PADICO, where it continued working according to its vision that emphasized its success year after year. The most important achievement for PADICO was to restructure its investments in these sectors: real estate, tourism, services, agriculture, environmental and infrastructure sectors. This achievement will help PADICO organize its operations and direct its investments to benefit the Palestinian national economy in general. PADICO has invested its money to build an independent Palestinian State based on its own economy that can face any challenges. PADICO’s investments support the steadfastness of Jerusalem that is being isolated, Gaza Strip in addition to supporting the efforts to enhance the West Bank’s economy to confront the wall and the Israeli dominations, a way to emphasize our national, economic and social responsibility, and above all, to quest the Palestinians dignity, social justice and the economic advancement. PADICO showed this commitment in 2011 by establishing Al-Mashtal Hotel in Gaza and renewing St. George Hotel in Jerusalem. This is way to emphasize our interest in our Capital Jerusalem and Gaza Strip. We believe that this attention stems from our responsibilities and values”.

PADICO’s Financial Results Coincide with its Strategy 

Regarding PADICO’s performance in the year 2011, said Mr. Masri, the financial results coincide with the company’s strategy that aims to focus on its investment and promote them. PADICO achieved revenues of $103.89 million, while its net profit reached $26.08 million. These results reflect the consistency of PADICO in the time where some companies merged together and restructured themselves with a renewed spirit towards the future. Regarding PADICO’s social responsibility, Mr. Masri stressed that PADICO had put its accumulated and extraordinary investment experience in addition to its rich expertise in the Palestinian market and global experiences, in order to adopt important societal issues, where it established programs that empower the University students’ skills to enter the Palestinian labor market, in partnership with the public, private and the higher education sectors to build a road for the future generation to continue their efforts towards Palestine’s future. 

2011 Was a Good Harvest Year and a Start of a New Phase

To his side, the CEO of PADICO Mr. Samir Hulileh pointed out that PADICO achieved good financial results in the year 2011 despite the challenges that the Palestinian economy faced, which affected the efforts to attract investments towards Palestine and once again strengthening the economy’s capacity to withstand.  He added, with continuing the obstacles and challenges, PADICO realized the needs to adopt a strategy that aims to maintain its gains and ensure its sustainability. PADICO’s strategy in 2011 based on four axes: acceleration the process of restructuring its subsidiaries and affiliates and improving their operational performance, and taking advantage of that to enhance the cash flows through developing new funding tools, engaging in projects that enhance the company"s investments and diversifying these investments into new sectors, and enhancing the community investment to sustain their needs and interact with it in a positive and long-term way. He said that this strategy produced a good harvest, where the company was able to achieve many goals with the end of the year, The completion of  the restructuring led the company"s operations and investment activities to be managed by four holding companies: Palestine Real Estate Investment Company (PRICO) in the real estate sector, Palestine Industrial Investment Company (PIIC) in the industry and agriculture sectors, Jerusalem Development and Investment Company (JEDICO) in the tourism sector, and TADWEER Company in the environment and infrastructural sectors , while the investment in the services and financial services sectors were preserved in two companies: Palestine Telecommunications PALTEL and Palestine Securities Exchange PSE. Where the restructuring contributed in decreasing the current costs and unlock the process of internal restructuring in PADICO’s various departments.  

Operational projects

Within the harvest year of 2011, Huleileh reported that eight entrepreneur projects entered the operational phase, or was run after the crash for years due to the political circumstances, divided by different economic sectors, in the infrastructure and the environment sector opened a solid waste recycling, followed by the first quarter of this year, a similar station in Nablus. In real estate sector, the company built its headquarters in Ramallah "padico House", and has been selling large portions of spaces for leading local and international companies, and started e-attitudes station "Park Plaza", which includes a commercial parking in the area of swefieh, Oman, in addition to the completion of the purchase of land with a total area of 3,000 dunums in the Jericho project "Jericho" tourist real estate portal with total investment so far 35 million dinars have been shared between the company jointly with the Palestinian telecommunications company. In the tourism sector, the company began running "St. George" landmark hotel in Jerusalem, Hotels chain management by "land mark" Jordan, " In industry and agriculture sector, opened early in the year 2011, Palestine Poultry Company AZIZA in the market, "Dear", in addition to expanding needs draft palm plantations in Jericho, "Palm of Palestine", planting thousands of trees and integration with "madiko". Huleileh predicted to begin the financial impact of these projects to appear in the income items for "padico holding during the year 2012, to be strengthened gradually in the coming years.

Projects under construction

Also, said Huleileh, a number of other projects under construction, some of which are on the verge of completion as the businessmen club in AL-TIRA, Ramallah, which is undergoing final finishes and is expected to be finished by next September, and in the Gaza Strip, AL-Mashtal project which includes 220 Chaliha beachfront, and the solid waste recycling project in the northern sector. As "Rico" signed a memorandum of understanding with the Palestinian Investment Fund and the industrial cities to create a company to develop agro-industrial zone of Jericho during the year 2012, with a capital of approximately 15 million dollars to share 65% to PRICO and 35% to the investment fund. In the infrastructure sector, the work continues with land expropriation power authority to build power plant in Jenin at a cost of up to $ 300 million.

Dedicated corporate social responsibility with a long-term vision

Huleileh assured that "PADICO holding" will begin to apply a social responsibility initiative after examining various aspects of the phenomenon of graduate unemployment plaguing the Palestinian youth and the society in General, and will be a central intervention initiative to systematically directed programmes beginning to 1,000 students from the Palestinian universities in order to provide them with the required skills for employment and the labour market and provide opportunities for practical training and theoretical experiences for them in the early stages of their University, arguing that "padico holding" designed to change and build awareness about the phenomenon and to participate in their resolution before Aggravation. Huleileh reported that "padico holding" is interested in supporting the creativity and entrepreneurship of youth, particularly in the area of business to encourage them to create jobs for themselves and their peers positively. His commitment of "padico holding" towards the community took on a new dimension that constitute a trade mark through this initiative.

New Investment tools

At the level of funding, said Huleileh, the year 2011 witnessed a qualitative shift in devising new financial tools, "padico holding" subscribed commercial bonds that is the first of its kind in the Palestinian market, with a view to financing of new strategic projects require long periods of returns, thereby reducing the need for the company to borrow short-term and enhances their liquidity to finance projects and maintain its ability to distribute dividends to shareholders. The company has been able to cover issues of these bonds in the amount of $ 85 million, an increase of 15 million original proposition, reflecting the company"s credibility and the confidence of financial and banking institutions to future projects and strategic plans.