Corporate Business Model

The business operation of Esterad is general investment which involves taking investment risk to generate a competitive return on its shareholders proprietary capital to partially be returned to the shareholders in the form of periodic dividend distribution and partly retained for capital growth.

The investment assets of Esterad shall primarily be GCC domiciled and shall be a mix of equity, debt and property assets. The investment pool shall be grouped into portfolios as per the risk return profile of the asset class. The four key portfolios Esterad will own as an investment model are: I) Strategic Equity Portfolio II) Fixed Income Portfolio III) Properties and Income Producing Assets; and IV) Trading Portfolio.

Long Term Corporate Objectives

To achieve a net overall return on average shareholder equity of around 10% P.A. and paying out dividends up to 50% of the prior fiscal year total statutory profit.

Key Corporate Policies

  • To focus mainly on the regional markets of the GCC and on assets which are mostly under the control of the Company’s management team.
  • To maintain high level of asset marketability that will sustain investment flexibility and financial stability.
  • To build a sizable investment asset base that generates an adequate level of annual cash income to service the minimum dividend distribution.
  • To maintain total debt as a percentage of the total shareholders’ equity at no more than 40%.
  • To have clearly defined guidelines and procedures and to act with high ethical standards by maintaining full compliance with legal, environmental and other laws of the countries that Esterad invests in.