imported 2024-03-17 17:43:08
There are numerous ways to enter Kuwaiti market. KFIB is one of the options. The foreign investors can enter into a JV with a local partner, they can follow a standard procedure with the ministry of industry, choose an opportunity with the offset program or participate in a PPP.
According to a report by NBK Capital, “basic level of FDI over the last decade—a mere $313 million a year on average—is by far the lowest in the GCC (GCC average is $44 billion per annum) and among the lowest in the wider MENA region.” Full report click here.
The strategy is to focus on KAMCO’s core business lines such as asset management and investment banking and at the same time capitalize on the rising growth opportunities in the GCC and China. Sadoun A. Ali, Chief Executive Officer of KAMCO, admits that “those 2 areas (China and the GCC) show healthy growth and KAMCO is looking for ways and products to tap into those markets.”
The investment banks, asset managers and investment companies in Kuwait have been hit by the 2008 global financial crisis.
The investment banks, asset managers and investment companies in Kuwait have been hit by the 2008 global financial crisis.
Sadoun A. Ali, Chief Executive of KAMCO, a leading asset manager and investment banking company sees capital markets in Kuwait to remain stable in 2012.
Recent feature of Kuwait Financial Markets is the adoption of Capital Markets Authority. According to KAMCO research “the Capital Market Authority in Kuwait created through a bill approved by the Kuwaiti parliament in February 2010 is on the right track but will require time to implement the laws and regulations that aim at regulating securities activities in a fair, competitive and transparent manner, protecting investors and implementing a policy of full disclosure so as to promote justice and transparency and to prevent conflicts of interest and the exploitation of insider information. The CMA Kuwait will bring more transparency and oversight to Kuwait Stock Exchange that in turn will boost confidence among foreign and institutional investors.”
Often the companies listed on the KSE have are implicated in a convoluted, opaque ownership schemes and many argue that there has been many cases of insider trading. Due to the size, Sadoun A. Ali, Chief Executive of KAMCO, a leading asset manager and investment banking company dismisses that widespread insider trading practices exist but admits that there are speculators in the market acting and trading upon rumors.
Walid Al-Hashash exposes the investment strategy of one of the leading energy holding company in Kuwait. AREF energy is investing in niche oil & gas services sector technologies and companies, predominately in the MENA region.
AREF Energy, a leading energy investment holding in Kuwait sees stable oil prices in 2012 hovering around $110 per barrel due to consumption from the emerging markets. Nonetheless, Al-Hashash, chairman of the company warns that any geopolitical instability could create temporary oil price spike that would paralyze consumer confidence potentially causing another recession.
