Region’s Future Financial-Sector Hub
| Kuwait has long been known for its international outlook as well as for its sound macroeconomic profile. Its groundbreaking Kuwait Fund for Economic Development, under the supervision of the Ministry of Finance, has provided development assistance and humanitarian aid to some 100 countries throughout the world. |
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Bader Mishari Al Humaidhi
Minister of Finance
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oday, Kuwait has positioned itself as an ideal business base for US investors and companies. It offers easy access to Iraq and other fast-growing regional markets, as well as a secure business environment and attractive investment incentives.
Bader Mishari Al Humaidhi, Minister of Finance, explains new measures the country has devised to bring in more international investors. He says, “We are increasing government spending and further diversifying the private sector. We are working on many projects, such as the Bouybian Island and Failaka Island projects, which will open the door for foreign investors. Kuwait has many opportunities for foreign companies, especially now that we have reduced the tax rate.”
With a market capitalization of US $36.1 billion, a thriving financial sector and legislation protecting investors’ interests, Kuwait is obviously a smart choice for US companies. As Minister Al Humaidhi says, “I think of Kuwait as the future financial center of the region and the gateway to other countries.” |
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| Kuwait Fund For Arab Economic Development |
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hen first established in 1961, the year of Kuwait's political independence, the KFAED was without precedent. A tiny country commits itself to share its newly found prosperity with its Arab neighbors. KFAED, in fact, was the first aid-donor to be established in the developing world.
After 1973 KFAED opened its operations in principle to the entire developing world, and later included the transitional economies of Central Asia and Eastern Europe. KFAED continues also to expand its operations from infrastructure and directly productive projects in agriculture and industry to education, health, and poverty-reduction projects.
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Abdulwahab Al-Bader
Director General
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“Kuwait Fund a Friend to Those in Need”
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By the end of 2004 fiscal year, KFAED had a paid-up capital of US $6.8 billion equivalent, and total reserves of US $5.6 billion. By that date the total number of concessional loans extended by the Fund, since its establishment stood at 650 loans, with a total value of about US $11.3 billion. The total amount withdrawn on account of loans for expenditure on projects implementation amounted to US $8.9 billion.
The total number of countries benefiting from these loans reached 100 countries including 16 Arab countries, 40 African countries, 33 Asian and European countries, and 11 Latin American and Caribbean countries. The shares of country groups from these loans were 52% for Arab countries, 17% for African countries, 28% for Asian and European countries and 3% for Latin American and Caribbean countries.
As to the sectoral distribution of the total loans committed, the transport and communication sector ranks first (36.7%) followed by energy sector (22.6%), agriculture sector (15.5%), industrial sector (10.1%), water and sewerage sector (11.3%), and other sectors (3.8%).
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To name just a few, our current projects range widely from a seaport in China and a railway rehabilitation in Uzbekistan to a major bridge in Bangladesh and an important road in Pakistan, an electric network in Ethiopia and irrigation development in Burkina Faso, a hospital in Jordan and two institutes of technological studies in Tunisia, an airport in Bulgaria and irrigation and drainage scheme in Albania, coastal protection and road rehabilitation in Grenada and flood-protection in Honduras.
Over the past 44 years, KFAED has been an active development partner working with countries and other development institutions in helping to alleviate poverty and improve the lives of millions of people. Millions more will benefit from KFAED's activities in the decades to come. KFAED will always be a friend to those in need.
| Global Investment House |
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lobal Investment House “Global”, established in 1998, has become a leader in Kuwait’s financial sector thanks to its world-class service for local and international clients. The company reached the threshold of US $5 billion under management at the end of August 2005 and by the following month had achieved a total KD 1.7 billion (US $5.9 billion) under management.
Global has played a major role in developing capital markets and is well known for its exceptional market insights and services. The company is now listed on the Kuwait, Bahrain and Dubai stock exchanges. As an additional service, Global regularly publishes in-depth equity research, market indices, country and market reports and weekly updates, all of which have become essential reading for financial-sector professionals. Global stands by its core values, which are to maintain clients’ trust, take an ethical approach, and guarantee quality, commitment, creativity, innovation and initiative.
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Maha Al-Ghunaim
Vice Chairman and Managing Director
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“Kuwait Investment House Receives Prestigious Awards”
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Prominent local business leader Maha Khaled Al-Ghunaim, Global’s Vice Chairman and Managing Director, recently received the coveted Arabian Business Magazine's Businesswoman of the Year award, and Global has been named Best Equity House in Kuwait by Euromoney magazine. It has also been named one of the Top 150 companies in the GCC region, and Al-Ghunaim received the prestigious Gulf Excellence award in February 2005.
Global has four areas of specialization, which are Local & GCC investments (management of assets, mutual funds, investment funds and portfolios), Corporate Finance (including advisory and consulting services, investment banking, and structured finance services), Investment Funds (including hedge funds, private equity and international real estate investments), Treasury Services (capital markets and fixed income), and Research (including economic, industry and company analyses). Global’s Distressed Fund was recently named seventh-best fund in the world by the Barclay Group, and third-best in the world by Eurekahedge, while Global’s GCC Real Estate Fund, the first residential real estate investment fund in the region, received Euromoney magazine’s Real Estate Investment award.
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When she accepted the Arabian Business Magazine award, Al-Ghunaim said, "If it were not for Global’s staff, management, the board, and shareholders and clients, I would not be standing here today. I thank Arabian Business Magazine for recognizing the efforts that I have put forth at Global, efforts reflected in the quality of our financial services and investment products.” The magazine cited Al-Ghunaim for her perceptive leadership, entrepreneurial management style and ability to instill team spirit among her staff members.“Global plays an important role in promoting investment opportunities in the Arabian Gulf Peninsula to international investors through expert financial engineering. It also provides investors with a diverse scope of international and national investment opportunities, and facilitates those investments by providing clients with services that target their individual needs,” she added
Global has positioned itself to serve as the preferred financial services partner for corporate and private investors.
| ALAFCO |
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viation Lease and Finance Company (ALAFCO) offers innovative commercial aircraft leasing and other services that adhere to Islamic Shariah principles. All its investments are ethical and equity-related, employing only the genuine assets or cash flow they generate. ALAFCO specializes in leasing, sales and lease-back services as well as aircraft and aircraft-leasing management and consulting. Accordingly, ALAFCO manages the Millennium Aircraft Leasing Fund in partnership with Novus Aviation.
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Ahmed A. Alzabin
General Manager
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“ALAFCO has a much focused approach.”
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In spite of all the challenges facing the aircraft industry over the past few years, ALAFCO continued to grow and bring benefits to its shareholders. As General Manager and CEO Ahmad A. Alzabin explains, “From 2000, our portfolio grew to seven aircraft of the new generation twin-engine narrow- and wide-body type, which are placed with five different Middle East and Asia customers. Revenues and operating profit increased by 74% and 14%, respectively, results that gave good reason for our shareholders’ confidence to double their shareholder funds to US $100 million.” Today, Alafco’s fleet has grown to 11 aircraft and the company has plans to expand to 50 aircraft over the next three to four years.
ALAFCO is owned 92% by Kuwait Finance House, Kuwait’s biggest Islamic bank, a reassurance of its strong financial base. ALAFCO works with a number of partners and can serve its clients throughout the Middle East and worldwide. As Alzabin points out, “ALAFCO has a much focused approach, only leasing commercial aircraft to commercial airlines in developing markets.”
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In addition to its leasing activities, ALAFCO is known for its world-class consulting services concerning aircraft acquisition and disposal, lease management and technical monitoring.
Alzabin welcomes contacts with US investors and companies, and explains, “We are always looking for new opportunities in emerging markets as well as partnerships that can help our intended expansion.”
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