Muthanna Investment Company Leading Islamic Investment Company in Kuwait

 About Muthanna Investment Company 

Profile

Muthanna Investment Company K.S.C.C. (“MIC”)  started business in mid 2004 as an investment company carrying on business in accordance with the Noble Sharia. The Company’s roots extend ack to 1977 when its Parent, Kuwait Finance House “KFH”, was the first Islamic finance institution in Kuwait.

With the intention to be its investment arm, KFH established its wholly-owned Muthanna Investment Compan. In order to follow and complement its strategy beyond the local and regional to the international markets, MIC Board of Directors decided to raise its capital to become D 64,500,000. By such packing, in terms of know-how and experiences of its Board of Directors and Executive Management, Muthanna Investment exceeded all expectations – its own or market easures – and is now positioned as a major investment company in the region.

Our Mission

“To be Our Client’s Gateway to Islamic Financial Solutions” Islamic financial industry is considered one of the fastest-growing markets in the world to the xtent it became a global phenomenon and developed far beyond rendering financial services to ffer various attractive opportunities for investors. As a result, demands for Islamic products and nstruments are growing significantly not only in the Middle East and Asia but also in Europe and both Americas.

Our Vision

“We aim to be the leading full-fledge Islamic Investment Company in the region with global presence that would generate unique investment opportunities for our clients” he rapid growth of Islamic investments has inspired companies to create innovative products including money, debt and capital market instruments. MIC’s vision focuses on capitalizing such opportunities in the booming markets and having clients’ interest aligned with our interest. Success of any organizational and structural frameworks can be measured by the fact of its growth and expansion that will be reflected on its financial reporting in terms of profit, asset base and growth
rates.

Diversity of Business

Since activation in 2004, one of our strengths is the diversified business activities that enable us o smoothly enter the local and international markets and expand our business, either regionally r internationally, in line with our strategic vision and objectives. Our business highlights extend to rapidly growing sectors, chief among them are launch and management of real estate portfolios and property development projects in different countries such as USA, UK and the GCC. Hence Muthanna Investment Company offers two major services; Corporate Finance and Asset Management.

Our Services

The object of the Fund is to assist Arab and other developing countries in developing their economies.

Corporate Finance Services

From raising start up capital to debt financing and feasibility evaluations, our corporate finance group can help individual and corporate customers with their unique capital needs, by providing ailored products to reduce financing costs and increase the returns using Sharia compliant modes of finance. We offer the following services:

• Business Valuations
• Financial Restructuring
• IPO Advisory & Execution
• Private Placements
• Merger & Acquisition
• Establishment and Disposal of Businesses
• Evaluation of Business Opportunities
• Project Finance
• Underwriting
• Other Investment Banking Activities

Private Equity

The Private Equity focuses on investing in growth sectors in the local, regional and international markets. We deeply seek to identify new companies in each sector which will potentially be the industry leader. Currently our portfolio of investments includes companies in different sectors:

Muthanna Takaful Insurance Company K.S.C.C. – Kuwait
MIC established a takaful insurance company with a stake of 50%, namely, Muthanna Takaful Insurance Company with a capital of KD 5,000,000 to provide Sharia compliant insurance services including property and general accident, marine, motor and re-insurance products.

Muthanna Investment Company LLC, Sultanate of Oman
To visualize its expansion strategy in both local and regional markets, MIC established Muthanna Investment Company – Oman, with a stake of 51% to be its investment arm in the Sultanate of Oman, it has recently become a destination of major investors in particular for real estate
investments.

Muthanna Saudi Company for Commercial Investment
Kingdom of Saudi Arabia this is a 60% owned subsidiary which was established in 2007. Its initial project is a villa real estate development venture of SAR 100 mn offering luxurious villas with various areas and affordable prices in a high-class district in Riyadh.

Human Investment Company K.S.C.C. – Kuwait
Muthanna Investment acquired a stake of 28% in Human Investment Company, which now holds significant holding interest in Majan College, Sultanate of Oman. MIC plays a key role towards the community as a whole through its investment in Human Investment Company; which in turn provides top training and consultation to organizations and agents that are seeking to maximize their human resource investments to approach the desired growth and success.

The Kuwaiti Manager– Kuwait
Muthanna Investment Company acquired a stake of 40% in Kuwaiti Manager Company. This Company provides several services such as project management, commercial contracting and real estate investment.

Business Park – Bahrain Investment Wharf –Kingdom of Bahrain
MIC and Tameer Company has formed a Joint Venture to develop a Business Park within Bahrain Investment Wharf (BIW). The Development will include commercial offices and retail space, the headquarters of Bahrain Investment Wharf B.S.C (c), and the headquarters of Tameer (the “Commercial Clusters”). BIW is 170 hectares mixed use privately operated industrial development located in Hidd Industrial Area in the Kingdom of Bahrain.

Asset Management

MIC Asset Management includes various products and services with its main emphasis on Portfolio Management. In addition, we provide Equity Research, a comprehensive Trading services and Investment funds.

Portfolio Management
Our investment approach begins in working closely with our clients to understand their asset base and to identify their short and long term goals, as well as their investment risk tolerance. We review each client’s portfolio on an ongoing basis and evaluate possible adjustments in response to market changes and trends, economic changes and client needs.

Trading Services

• Direct loans or the provision of guarantees.

• Joint or parallel financing with other international, regional or national development finance institutions.

• Making of grants-in-aid to finance technical, economic and financial studies whether in relation to projects financed by the Fund or otherwise. Such studies may be of such types as pre-investment surveys, studies for the identification of investment opportunities and projects, feasibility studies, project preparation, sectoral studies and the like.

• Advisory services in relation to technical, financial, economic and legal aspects of projects or programmes or development policies, or in relation to institution building in the field of development.

• Subscription to the capital, or contribution to the resources of development finance institutions.

• Subscription to the capital of eligible developmental enterprises.

Investment Funds

Muthanna Islamic Index Fund
In 2007, Muthanna Investment launched an index under Muthanna Islamic Index reflecting the overall performance of companies that meet the provisions of Islamic Sharia in Kuwait Stock Exchange. The index will enable investors to benchmark the performance of portfolio managers and Islamic Funds against the Islamic market performance.

The index was turned into the first Sharia exchange traded fund that was close-ended with variable capital up to KD 50 million with a par value of KD 1 and it has various advantages such as diversification, lower cost, simplicity, stability of returns, transparency and ease of monitoring.

Transaction Experience

Organization and Management of the Fund

Al-Masaken International Real Estate Company K.S.C.C.
The Company’s primary focus of operation is the development of residential projects in Kuwait with expansion plans on the anvil to cover wider GCC markets. MIC acted as Placement Manager Co-Advisor for Al-Masaken’s capital increase to KD 20,000,000 in a deal of KD 13,000,000.

Kuwait Pearls Real Estate and Kuwait Finance House
MIC was the Arranger for a real estate financing deal for a development project of commercial and residential units at Pearls Al-Khairan Project in Kuwait with an Istisna’a amount of KD 15,000,000.

ALAFCO
ALAFCO Aviation Lease and Finance Company KSCC is an emergent provider of innovative Sharia-based commercial aircraft leasing products. MIC acted as Lead Manager and Listing Advisor for ALAFCO in the pre-listing placement phase in a transaction amounting to KD 24,630,000.

Finzels Reach
Finzels Reach consists of a prominent mixed-use development site in the city centre of Bristol, England. The site has extensive river frontage as well as excellent road links within the city centre and to the Bristol ring road. The immediate vicinity has a mix of both new and historic residential, office and retail accommodations. MIC acted as an Underwriter for the project, as well as a Joint
Venture sponsor with a project size of approximately KD 125 Million.

Al Rai Logistica Company K.S.C.C.
Al-Rai Logistica is a company specializing in operating and providing third party logistics services. MIC acted as Lead Placement Manager to increase the capital to KD 30,000,000.

Future Plans
 

Our Human Power

The success of any company hinges primarily on its success to hire cadres and experienced people capable of realizing such results. Without demur, Muthanna Investment has such human capital that makes it rest assured as to the management of advancement process and the accomplishment of all objectives set by the founders in the investment agenda of the Company. Chief among the distinctions of Muthanna Investment is the diversification of qualifications and expertise available in the Company including investment and consultancy services, as well as portfolio and funds management, human resources and otherwise.

Moreover, Muthanna Investment takes great pride in its human assets that are the real driver behind the successes of the Company and on which MIC relies for its future plans. Based on the belief of the employees’ role and outstanding cadre, Muthanna Investment has been keen on providing a competitive work environment in terms of using up-to-date equipment and technologies that suit the skills of its employees.

Future Plans

During 2007, the Company’s Board of Directors decided to raise its capital to KD 64,500,000. This will provide the financial resources necessary for accommodating the Company’s expansion plans and to facilitate realization of the Company’s investment agenda. To such end, the Company’s Management has developed well studied plans to increase its operational revenues through local and regional expansion in its investment activities. This is in addition to seeking new investment opportunities, regionally and internationally. In the forthcoming years,

MIC’s outlook is prosperous as evidenced by its financial results. The Company focuses on expanding its presence locally and internationally through growing its market share, net profit and assets under management.