Capital Markets
From The Report: Kuwait 2015
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A series of reforms being implemented by the Capital Markets Authority are expected to benefit the country’s bourse, following on the comprehensive restructuring of the Kuwait Stock Exchange in the years following the 2007-08 economic downturn. In 2009 the Kuwait Stock Exchange introduced a new classification system that organised listed companies into 15 sectors, instead of just eight as under the previous system. The regulator is also moving forward with a plan to privatise the Kuwait Stock Exchange, which was converted to a privately managed company called Bourse Kuwait in April 2015, and eventually to take the bourse public in an IPO. The banking sector currently accounts for 49% of the total Kuwait Stock Exchange value by market capitalisation, followed by telecoms with 11%.
Articles from this Chapter
Planning for the future: The country’s capital markets regulator is working to boost activity on the exchange
New momentum: As the market continues to recover, local firms are eyeing IPOsOBGplus
In late March 2015 Kuwait’s parliament voted to amend the ownership structure of the Kuwait Stock Exchange (KSE), with the goal of listing the firm in an initial public offering (IPO) before the end of the year. Under the plan, which as of August 2015 the government had yet to finalise and confirm, around 50% of the bourse would be sold to Kuwaiti citizens, between 6% and 24% would be owned by various state entities, and the remaining 26-44% would go to a company with prior experience operating…
Mabanee: Real estateOBGplus
THE COMPANY: Mabanee is a shareholding real estate firm that is widely recognised for owning The Avenues Mall. It was listed on the Kuwait Stock Exchange in November 1999 and is currently the largest real estate company in the country, with a market capitalisation of KD824m ($2.84bn), representing around a third of the Kuwaiti real estate sector. The Avenues is planned to include four phases, three of which are currently operational. The most recent phase ended in 2012 at a total cost of KD171m ($589.12m). The current occupancy for all three phases is 100%. Phase four of the mall is currently being planned and will increase gross leasable…
Mabanee: Real estateOBGplus
THE COMPANY: Mabanee is a shareholding real estate firm that is widely recognised for owning The Avenues Mall. It was listed on the Kuwait Stock Exchange in November 1999 and is currently the largest real estate company in the country, with a market capitalisation of KD824m ($2.84bn), representing around a third of the Kuwaiti real estate sector. The Avenues is planned to include four phases, three of which are currently operational. The most recent phase ended in 2012 at a total cost of KD171m ($589.12m). The current occupancy for all three phases is 100%. Phase four of the mall is currently being planned and will increase gross leasable…
National Bank of Kuwait: BankingOBGplus
THE COMPANY: Recognised as the leader in the local banking industry, National Bank of Kuwait (NBK) was established in 1952 as the first local and national bank, and the first joint stock company in Kuwait and the Gulf region. NBK is the largest financial institution in Kuwait with total assets of KD21.8bn ($75.1bn) and the top market share at around 32% of banking services. NBK has steadily earned the highest credit ratings among Middle Eastern banks from international agencies in recognition of its high quality of assets, strong financial performance and solid capital base. Moody’s, Fitch Ratings and Standard & Poor’s have assigned…
National Bank of Kuwait: BankingOBGplus
THE COMPANY: Recognised as the leader in the local banking industry, National Bank of Kuwait (NBK) was established in 1952 as the first local and national bank, and the first joint stock company in Kuwait and the Gulf region. NBK is the largest financial institution in Kuwait with total assets of KD21.8bn ($75.1bn) and the top market share at around 32% of banking services. NBK has steadily earned the highest credit ratings among Middle Eastern banks from international agencies in recognition of its high quality of assets, strong financial performance and solid capital base. Moody’s, Fitch Ratings and Standard & Poor’s have assigned…
Jazeera Airways: AviationOBGplus
THE COMPANY: Established in 2004, Jazeera Airways operates as a low-cost carrier from Kuwait and flies to high-demand business, leisure, family and weekend destinations such as Dubai, Bahrain, Beirut, Alexandria and Cairo. The company first listed on the Kuwait Stock Exchange (KSE) in 2008, and as of early 2015 Jazeera operated a fleet of seven Airbus A320 aircrafts. The company is now catering to almost 20 destinations. Jazeera is one of the key large-capitalisation stocks listed on the KSE and is part of the KSE-15 Index. The firm is also one of the top 25 companies in Kuwait with a market capitalisation of KD218.4m ($752.43m). The company…
Jazeera Airways: AviationOBGplus
THE COMPANY: Established in 2004, Jazeera Airways operates as a low-cost carrier from Kuwait and flies to high-demand business, leisure, family and weekend destinations such as Dubai, Bahrain, Beirut, Alexandria and Cairo. The company first listed on the Kuwait Stock Exchange (KSE) in 2008, and as of early 2015 Jazeera operated a fleet of seven Airbus A320 aircrafts. The company is now catering to almost 20 destinations. Jazeera is one of the key large-capitalisation stocks listed on the KSE and is part of the KSE-15 Index. The firm is also one of the top 25 companies in Kuwait with a market capitalisation of KD218.4m ($752.43m). The company…
Kuwait Finance House: BankingOBGplus
THE COMPANY: Kuwait Finance House (KFH) was established in 1977 as the first Islamic financial institution in Kuwait providing banking services, purchase and sale of properties, leasing, project construction and other trading activities. The bank was listed on the Kuwait Stock Exchange in 1984, and is currently the second-largest company on exchange with a market capitalisation of KD3.2bn ($11.02bn). KFH is also the second-largest financial institution in Kuwait in terms of total asset base at KD17.2bn ($59.26bn) and customer deposits of KD10.9bn ($37.55bn). Major international rating agencies, namely Moody’s, Fitch Ratings and Standard…
Kuwait Finance House: BankingOBGplus
THE COMPANY: Kuwait Finance House (KFH) was established in 1977 as the first Islamic financial institution in Kuwait providing banking services, purchase and sale of properties, leasing, project construction and other trading activities. The bank was listed on the Kuwait Stock Exchange in 1984, and is currently the second-largest company on exchange with a market capitalisation of KD3.2bn ($11.02bn). KFH is also the second-largest financial institution in Kuwait in terms of total asset base at KD17.2bn ($59.26bn) and customer deposits of KD10.9bn ($37.55bn). Major international rating agencies, namely Moody’s, Fitch Ratings and Standard…
Zain Group: Mobile telecommunicationsOBGplus
THE COMPANY: Zain Group is a Kuwait-based public shareholding company engaged in the provision of mobile telecoms and data services in eight MENA countries. Zain was incorporated in June 1983 and listed on the Kuwait Stock Exchange in March 1985. The telco currently ranks fifth in terms of market capitalisation in the GCC telecoms sector at KD2.1bn ($7.2bn). Zain reported a net profit of KD194.3m ($699.4m) in 2014, down 10.2% from KD216.4m ($745.54m) in 2013. This decline was due to a drop in subscribers as competition heated up, resulting in a 2.1% decline in revenues during the same period, from KD1.24bn ($4.27bn) to KD1.21bn ($4.17bn),…
