Transcript Kuwait - AMEDA

Kuwait
1
Kuwait

About Kuwait:

Total population: 3.4 M (1/3 nationals)

Free democratic system

Independent Juridical system

Modern Infrastructure.
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Kuwait

Oil reservoirs 9% of the international oil
resources.

Member of WTO.

New tax law.

Foreign investor law.
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Kuwait

Economy - overview:
Kuwait is a small, rich, relatively open economy with selfreported crude oil reserves of about 104 billion barrels - 9% of
world reserves. Petroleum accounts for nearly half of GDP, 95%
of export revenues, and 80% of government income. High oil
prices in recent years have helped build Kuwait's budget and
trade surpluses and foreign reserves. As a result of this positive
fiscal situation, the need for economic reforms is less urgent and
the government has not earnestly pushed through new initiatives.
Despite its vast oil reserves.
In May 2007 Kuwait changed its currency peg from the US dollar
to a basket of currencies in order to curb inflation and to reduce
its vulnerability to external shocks.
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Kuwait

Major Economic Indicators (2008):

Total GDP (at current prices) $ 113 BN.

Income per capita $ 37,000.

GDP growth at current prices 14.1%.

Real GDP growth 3.8%.

Inflation 7.5%.

Unemployment 1.8%.

Sources: CBK Report
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Kuwait

Summary of Export: (BN KD)
EXPORTS
BN KD
Period
2008
Oil Exports
(1)
Non-Oil Exports
(2)
Total Exports
65
4
69
2008
Non-Oil
Exports
%9
Oil Exports
%19


Sources: CBK Report
KD = 3.4 $
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Kuwait

Totl Revenue 69 BN
Budget 2007 – 2008:


Total revenue $ 69 BN –
Oil represents
$ 65 BN.
,others represents
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Oil represents, 65
Totl Revenue 69 BN
Total expenditure
$ 27 BN.
Total
,expenditure
72
Surplus, 42


Surplus $ 42 BN.
Sources: CBK Report
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Kuwait

Banking and Financial Sectors (2007):
(million KD)
#


Sectors
Total Balance
Sheet
Private sector
deposits
Numbers
1
Banking:
35,555
20,404
9
2
Investment
companies:
16,041
--
87
Total:
54,129
20,404
96
Sources: CBK Report
KD = 3.4 $
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KSE

Kuwait Stock Exchange (KSE):

The Kuwait Stock Exchange enjoys an independent judicial
personality with the right of litigation in a mode facilitating the
performance of its functions for the purpose of realizing the
objectives of its organization in the best manner within the scope
of regulations and laws governing the Stock Exchange
operations.

The Stock Exchange within its activity act to direct and rationalize
dealing in stocks and securities, within the scope of its powers in
order to develop and stabilize dealing in securities in a manner
securing safe, easy and accurate transactions so as to avoid any
confusion in dealings.

Sources: KSE
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KSE

Market capitalization (2008): KD 59.6 BN

Daily average trading (2008):
about 10,000 Deals

Brokerage fees (2008):
%0.125 up to 50,000 KD,
than %0.1 will charge.

Number of listed companies (2008): 209

Sources: KSE
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KSE
KUWAIT SECURITIES MARKET:
2007
Value of Traded Shares(Million Dinars)
37,293
Volume of Traded Shares(Million Dinars)
70,437
Number of Deals(Thousand Deals)
2,316

Sources: KSE Annual Report 2007
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KSE

Securities Market, Volume and Number of
Deals of Traded Shares: (Official Market)
Deals in 2007
Deals in 2007
1,100,000
Food
1.72%
1,080,000
NonKuw aiti
6.52%
Banks
7.48%
Services
22.74%
1,060,000
Investments
30.50%
1,040,000
1,020,000
1,000,000
industry
9.96%
980,000
960,000
RealState
20.95%
insurance
0.14%

‫ص‬
‫الن‬
‫ف‬
‫ني‬
‫الثا‬
‫ول‬
‫اال‬
‫ف‬
‫ص‬
‫الن‬
940,000
Sources: KSE Annual Report 2007
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KSE

Securities Market, Volume and Number of
Traded Shares: (Official Market)
Shares
Current
shares current 2007
40,000,000,00
0
35,000,000,00
0
30,000,000,00
0
25,000,000,00
0
20,000,000,00
0
15,000,000,00
0
10,000,000,00
0
5,000,000,000
non kuw aiti‫ا‬
food
%24.7
1.41%
services
18.89%
RealState
26.48%
‫ف‬
‫ص‬
‫الن‬
Insurance
0.12%
‫ني‬
‫الث ا‬
‫ص‬
‫الن‬
‫ول‬
‫اال‬
‫ف‬

Investment
32.10%
Industry
7.22%
-
Banks
6.35%
Sources: KSE Annual Report 2007
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KSE

Securities Market, Current Shares Price
Index:
Current Shares Price 2007
Current shares Price 2007
Non Kuw aiti
Food 5.18%
1.20%
19,000,000,000
18,800,000,000
Banks
14.63%
Investment
25.65%
Services
29.02%
18,600,000,000
18,400,000,000
18,200,000,000
18,000,000,000
Industry
10.82%
17,800,000,000
RealState
13.37%
Insurance
0.13%

‫ص‬
‫الن‬
‫ف‬
‫ني‬
‫الثا‬
‫ول‬
‫اال‬
‫ف‬
‫ص‬
‫الن‬
17,600,000,000
Sources: KSE Annual Report 2007
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KCC

Kuwait Clearing Company (KCC) Role:

Provide reliable clearing, settlement, central
depository and shares registration.

Settlement and clearing trading for options,
future contracts, bonds and other derivatives.
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KCC

Paying dividends to shareholders of listed
companies.

IPO’s underwriting.

Develop e-trade, e-settlement and SWIFT in
the stock market.
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KCC

Kuwait Clearing Company chart:
Board of
Directors
Internal Audit
Unit
General Manager
Legal Unit
Head Custody &
Share Registrar
Head
Fund Trustee
AGM Information
Technology
AGM Support
AGM Operations
Head Clearing &
Settlement/
IPO
Customer
Relations Unit
Head Derivatives
Head HR/Admin
Head Finance
Head Treasury
Head Settlement
& Reconciliation
Manager
Database
Administrator
Manager
New Projects
Manager
Business
Planning &
Development
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KCC

Date of inception: 1982

Equity Shareholders: (December 2007)



Capital Paid:
Capital Premium:
Reserves:
4,500,000 KD
5,625,000 KD
9,000,000 KD
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KCC

Shareholders:
#
Name
Shares Portion Percentage
1
Kuwait Stock Exchange
12,500,000
5
27.8%
2 Kuwait Investment Projects Co. 7,500,000
3
16.7%
3
Kuwait Investment Co.
5,000,000
2
11.1%
4
Kuwait International Bank
5,000,000
2
11.1%
5
Commercial Bank of Kuwait
2,500,000
1
5.6%
6
IFA
2,500,000
1
5.6%
7
Bahrain & Kuwait Bank
2,500,000
1
5.6%
8
PIFSS
2,500,000
1
5.6%
9
IFC
2,500,000
1
5.6%
10
Al Ahli Bank of Kuwait
2,500,000
1
5.6%
Total
45,000,000
18
100%
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KCC

Number of employees:
146

Number of funds and trustees:
40

Number of companies in registrar: 226
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Thanks
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