Ideal Base for Trade-Oriented Activities
| With its strategic location, highly developed infrastructure and history of successful international business partnerships, Kuwait has positioned itself as an ideal base for US investors looking to enter fast-growing regional markets. |
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ith regional trade growing at around double the international average, particularly concerning container traffic, Kuwait is focusing on strengthening its traditional role as a transhipment center and trading hub by significantly upgrading its ports and logistics services. To enhance the country’s attractions for industry, the government has also established the state-of-the-art Kuwait Free Trade Zone at Shauwaikh Port, which provides easy access to emerging regional markets and offers a number of incentives for foreign investors.
Kuwait has a well-established international trading network, with exports totaling almost US $30 billion in 2004, mainly in oil and refined petroleum products and fertilizers; Japan, the US and South Korea are the country’s top markets. Kuwait’s imports totaled around US $11 billion in 2004, mainly in food products, construction materials, vehicles and automotive parts, and clothing. The US is the top source for goods imported to Kuwait and US firms are particularly welcome there.
Foreign investors will find a number of opportunities in Kuwait’s petroleum sector, including providing equipment, maintainence and oil-industry infrastructure. Kuwait’s non-oil sectors offer excellent potential as well, particularly in the power, medical, infrastructure, telecommunications and tourism sectors. Kuwait’s on-going privatization program continues to create new options for investors.
Kuwait’s Foreign Investment Law allows for foreign-majority ownership in joint ventures and 100% foreign ownership in certain industries. It also exempts foreign-majority-owned companies from requiring a local agent; creates new entities to promote foreign investment in Kuwait; authorizes 10-year tax holidays for new foreign investors; facilitates the entry of expatriate labor; authorizes land grants and duty-free import of equipment; guarantees against expropriation without compensation and the right to repatriate profits; and in general protects investors’ interests. |
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| Aerated Concrete Industries Company (ACICO) |
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erated Concrete Industries Company (ACICO) has established a leading position in the regional construction sector through offering innovative construction techniques and a wide range of integrated services. “We can start from scratch and do everything,” says Ghassan Ahmed Al-Khaled, Chairman and Managing Director. His daughters Ghosson Al-Khaled and Ghaida Al-Khaled, both managers in the company, add, “We have a unique service that is not only exceptionally rapid, but also we can handle everything from design through the entire project.”
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Ghassan Ahmed
Al-Khaled
Chairman and Managing Director
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“We can start from scratch and do everything.”
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ACICO employs the world-class autoclaved aerated concrete system developed in Germany that allows for particularly time-efficient and cost-effective construction thanks to lightweight, prefabricated materials. ACICO’s activities include the production of reinforced and non-reinforced autoclaved concrete and ancillary construction materials, as well as imports and exports of construction and related materials and tools.
The company’s diversified business divisions include Ghaida Ghassan Al Khaled Engineering Consultants, which provides a full range of engineering services; Trends, an interior design firm; Al Masaken Real Estate Development Company, with a wide range of activities in the property market; Ea’mmar & Estethmar Fund, focusing on property investments; Kuwait United Precast Systems Company, a leading producer of concrete; Ghassan Ahmad Al Khaled & Co., established in 1975, is a first grade contractor with many private and government sector projects; and ACICO International Real Estate Development Company, which owns, operates and manages major commercial and recreational properties.
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Among ACICO International’s current projects are the mixed-use towers complex on Sheikh Zayed Road which includes the five-star, 57-floor Hotel Nikko Tower Dubai; medical clinics and commercial buildings in Dubai Healthcare City, and Nikko Fujairah Resort & Spa in Al Fujaira, UAE.
Ghassan Ahmed Al-Khaled welcomes the opportunity to work with US firms and investors to take advantage of the many opportunities opening up throughout the region. With its strong track record and diverse business interests, ACICO is an ideal partner for American companies.
| National Industries Group |
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ational Industries Group, a fully private holding company listed on the Kuwait Stock Exchange, has been growing rapidly to achieve its current market capitalization of US $5 billion and has annual turnover of US $375 million, set to reach US $400 million this year. National Industries Group is Kuwait’s leading non-oil-sector industrial group and is ranked one of the largest industrial groups in the Middle East.
The group has successfully diversified from its original focus on building materials and construction to make direct investments in dynamic and challenging new sectors, including petrochemicals and engineering. Today, National Industries Group has 35 subsidiaries operating in a wide range of activities and has established a particularly strong presence in the building materials and construction, specialized engineering, and petrochemicals sectors. National Industries Group is active in Europe, Asia and North America as well as the Middle East.
As for the future, “National Industries Group is ambitious in its goal to become a multi billion US Dollar company in terms of shareholders’ equity and, in the process, one of the largest industrial groups in the region,” explains Sa’ad Mohammed Al-Sa’ad, Chairman and Managing Director. He adds, “We want to be the next GE of the GCC.” He defines the group’s key strengths as its secure financial position, broad scope through 35 subsidiaries, and history of successful international expansion.
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Sa’ad Mohammed
Al-Sa’ad
Chairman and Managing Director
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“We want to be the next GE of the GCC.”
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National Industries Group is one of the largest shareholders (with 11.45% equity) in the Saudi International Petrochemical Company, formed to build a number of petrochemical plants in Saudi Arabia, and the group also has an 8% share of the National Petrochemical Industrialization Company, responsible for the largest propylene and polypropylene project in the Middle East. The group’s portfolio is 30% in the Gulf region and 70% outside, and includes 10% in greenfield projects, 10% in real estate, 10% in long-term investments, and 5% in local education and health care projects.
National Industries Group partners with a number of global leaders, including Shell and Mitsubishi, and current projects include a US $120 million venture with Stansless steel and a US $320 million project to build or acquire a power station in Karachi. The group currently includes National Industries Group Holdings S.A.K., the UK-based BI Group Plc, and the Kuwait Prefabricated Building and Construction Company of which National Industries Group owns 15%. National Industries Group also has significant interests in Kuwait Cement Co., Kuwait Metal Pipe industries, Kuwait Building Materials Manufacturing Co., Gulf Cable & Electrical Industries Co., Industrial Bank of Kuwait, Saudi Lime Bricks & Building Materials Co., National Pharmaceutical Industries Co., Rene Brisach Cheminées Cie (France) and Prince De Galles Corporation (Germany). Each year, the group’s Industrial Investments and Development Division assesses more than 40 major new projects and development opportunities.
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National Industries Group is well on the way to achieving its goal of becoming a multinational company. It has significant critical mass and has established an exceptionally strong track record throughout the Middle East, which has given the group the sound financial backing it needs to continue to grow. The group’s broad geographical coverage, diversified investment strategy, significant rise in shareholder returns and comprehensive product and service portfolio have combined to make it particularly attractive to international investors seeking a foothold in the industrial sector in Kuwait and throughout the region.
Now ranked number 30 in the Arab world in its sector, National Industries is known for its dynamic management team and strong track record. To potential US partners, Al-Sa’ad says, “We are looking for growth in the US, and we want to sustain 10% growth overall each year. We are also open to investors and partnerships.”
National Industries Group (back)
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P.O. Box 24079
Safat, 13101, Kuwait
Tel.:+965 888811
Fax:+965 2422103
www.acico.com.kw |
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