Solidarity is one of the largest takaful (Islamic insurance) companies in the world. The Company provides General and Family takaful products and services which comply with the principles of the Islamic Sharia, around the globe.

Solidarity, in which Ithmaar Bank holds 33.8 per cent equity interest as at 31 December, 2007, posted a net profit of $7 million, as compared to $5.4 million for 2006. Gross revenue for 2007 was at $20.5 million, up from $16 million during 2006.

The significant strategic progress, record financial performance and strong operational achievements by Solidarity in 2007 illustrate that the Company has entered a new and exciting phase in its development. The increase in paid up capital to $220 million has provided added impetus to the Company’s strategy of growing its presence in its home markets, and into previously untapped foreign markets, through investments in new ventures and acquisitions. As a result of successful geographic expansion initiatives during 2007, Solidarity now has a presence, either existing or in progress, in seven countries around the world.

The proposed evolution of Solidarity’s corporate structure into a holding company structure will provide a strong platform for future business growth and strategic expansion. The new structure will enable Solidarity to enhance the inherent synergies between different parts of the Company, as well as improving economies of scale through corporate shared services.

Solidarity’s strong business performance during the year was highlighted by new product introductions, widened distribution channels, enhanced levels of customer service, and a continued investment in technology. New products include the launch of SOLIDFoundation home finance (mortgage) protection, the Corporate Savings Scheme Takaful Policy, and Directors’ and Officers’ Liability cover, the latter in collaboration with Chubb.

New distribution channels were developed through the signing of marketing agreements with Shamil Bank, Sakana and the ARG Group. The Company opened two new Customer Care Centres at Seef Mall and KFH AutoMall, and also introduced a new 24x7 Motor Claims Call Centre, with a toll-free number, in order to provide enhanced levels of customer service.