Company type | Public |
---|---|
Industry | Holding company |
Founded | 2 August 1975 as Kuwait Investment Projects Company |
Headquarters | KIPCO Tower, Khalid Bin Al Waleed Street, Sharq, Kuwait City |
Area served | GCC & MENA Region |
Key people | Sheikh Hamad Sabah Al Ahmad Al Sabah (chairman) Faisal Hamad Al Ayyar (vice chairman) |
Products | Commercial banking, AMIB, insurance, real estate, industrial, investment, media & technology |
Revenue | US$2,553 million (2018) [1] |
US$93 million (2018) [1] | |
Total assets | US$34 billion (2018) [1] |
Total equity | US$3.3 billion (2018) [1] |
Number of employees | 16000 [2] |
Website | www.kipco.com 29°22′33″N47°59′11″E / 29.37583°N 47.98639°E |
Kuwait Projects Company (Holding), known as KIPCO, is an investment holding company in the Middle East and North Africa (MENA) region, with consolidated assets of US$34.2 billion as of 31 December 2018. The group has significant ownership interests in a portfolio of over 60 companies operating across 24 countries. The group's main business sectors are financial services, media, real estate and manufacturing. Through its core companies, subsidiaries and affiliates, KIPCO also has interests in the education and medical sectors. [3]
KIPCO was incorporated on 2 August 1975 under Article 94 of the Kuwaiti Commercial Companies Code, Law No. 15 1960. [4] Since incorporation, the company has grown substantially and made significant investments in a diversified portfolio of companies operating throughout the GCC and the wider MENA region.
1988 | Acquisition of United Gulf Bank (UGB) [5] |
1995 | Acquisition of stake in United Real Estate Company (URC) [6] |
1995 | Acquisition of stake in Burgan Bank |
1995 | Formation of Gulf DTH (Showtime) |
1996 | Acquisition of stake in Gulf Insurance Company (GIC) – now Gulf Insurance Group [7] |
1996 | Acquisition of United Industries Company (UIC) |
1996 | Acquisition of SADAFCO - Saudia Dairy and Foodstuff Company - by UIC |
1998 | Formation of KAMCI – KIPCO Asset Management Company [8] |
1999 | Acquisition of stake in Wataniya Telecom [9] |
2006 | Establishment of US$2 billion EMTN programme [10] |
2007 | Sale of Wataniya Telecom |
2009 | Merger of Showtime and Orbit to create OSN [11] |
2009 | Completion of a 7-year US$500 million bond issue under EMTN programme [12] |
2010 | Completion of a 7-year US$500 million bond issue under EMTN programme [13] |
2010 | Sale of 39.2% stake in GIC to Fairfax [14] |
2010 | KIPCO acquires 34% direct stake in URC by subscribing to rights issue in Dec’10 [15] |
2010 | Acquisition of 40.3% stake in UIC, 28.4% during rights issue and 11.9% from KAMCO in Sep’10 [16] |
2012 | Burgan bank acquires 99.3% in Eurobank Tekfen (rebranded as Burgan Bank – Turkey) [17] |
2013 | OSN acquires 100% stake in Pehla (region's largest provider of South Asian pay TV content) [18] |
2013 | Burgan Bank & UGB jointly acquired ~49% stake in Fimbank, Malta [19] |
2013 | UIC purchases additional 10.8% stake in Qurain Petrochemical Industries Company(QPIC) [20] |
2013 | UIC divests 29% stake in SADAFCO for KD66 mn [21] |
2014 | Completion of a 5-year US$500 million bond issue under EMTN programme [22] |
2014 | UIC divests remaining 11% stake in SADAFCO for KD25mn |
2014 | Burgan Bank completed the issuance of US$500mn perpetual bond [23] |
2014 | Burgan Bank successfully raised capital worth KD102.6 million through a rights issue [24] |
2015 | OSN secures second Syndicated Financing Facility for US$400 million [25] |
2015 | KIPCO through its subsidiary acquired 51.2% stake in Jordan Kuwait Bank from Burgan Bank [26] |
2016 | KIPCO repays KD 80 million bond [27] |
2016 | Completion of a 7-year US$500 million bond issue under EMTN programme [28] |
2016 | Burgan Bank completed the issuance of a KWD 100 million Tier 2 Capital issuance [29] |
2016 | GIG acquires 90% stake in Turkish non-life insurer [30] |
2016 | Burgan Bank successfully completed issuance of 5 year, US$500mn bond under its Medium term notes programme [31] |
2016 | KIPCO repaid US$500mn bond issued under the EMTN programme in October 2016 |
2017 | Successfully completed issuance of 10 year US$500mn bond under its EMTN programme with simultaneous tender of ~53% of its EMTN 2019 [32] |
2017 | URC announces 40% acquisition in Insha'a Holding. [33] |
2017 | United Gulf Bank (UGB) has undergone corporate reorganization (in September 2017) and has split its operations across a holding company - United Gulf Holding Company B.S.C. (UGHC) and the regulated banking entity- UGB. [34] |
2017 | Completed first ever seven-year corporate dinar bond issue of KD 100 million maturing in December 2024 [35] |
2018 | Completed a five-year KD 100 million corporate dinar bond issue maturing in November 2023 [36] |
2019 | Announced a rights issue of 453 million fully underwritten shares [37] |
2019 | Repaid US$ 500 million bond issued under EMTN program matured in February 2019 [38] |
2019 | KIPCO Completed its rights issue & raised KD 95.08 million in equity [39] |
KIPCO is a strong supporter of promoting transparency of operations, thereby launching its annual Shafafiyah (transparency) investors’ forum in 2004. [40] In this forum, KIPCO and its Group companies shed light on ethical and responsible decision making methods, while safeguarding the integrity of financial reporting. KIPCO has made timely and balanced disclosures, while efficiently recognising and managing risk.
Name | Position |
---|---|
Sheikh Hamad Sabah Al Ahmad Al Sabah | Chairman |
Faisal Hamad Al Ayyar | Vice chairman |
Abdullah Yacoub Bishara | Board director |
Sheikh Abdullah Nasser Sabah Al Ahmad Al Sabah | Board director |
Sheikha Futtouh Nasser Sabah Al Ahmad Al Sabah | Board director [40] |
Name | Position |
---|---|
Faisal Hamad Al Ayyar | Vice chairman (executive) |
Samer Subhi Khanachet | Group chief operating officer |
Tariq Mohammad Abdulsalam | Chief executive officer, investments |
Pinak Maitra | Group chief financial officer |
Khaled Abdul Jabbar Al Sharrad | Group chief HR and administration officer, board secretary |
Eric Schumacher | Group treasurer |
Mohsen Ali Husain | Group chief audit executive |
Mazen Isam Hawwa | Deputy group chief operating officer and group executive vice president – finance |
Joe Kawkabani | Group chief strategic initiatives officer |
Adel Jassem Al Waqayan | Treasurer |
Osama Talat Al-Ghoussein | Senior vice president, banking |
Tawfiq Ahmad Al Jarrah | Executive director - Hessah Al Mubarak District |
Eman Mohammad Al Awadhi | Group communications director |
Robert Drolet | Consultant |
KIPCO's principal shareholder is Al Futtooh Holding Company (AFH), a Kuwaiti holding company owned by members of the Kuwaiti ruling family, with a direct holding of 44.7% as of 30 June 2019. The remainder of the shares are primarily held by institutions, equity funds, high-net-worth individuals and retail investors.
The following table sets out the percentage holdings of the company's shareholders as at 30 June 2019: [42]
Percentage holding | |
---|---|
Al Futtooh Holding Company K.S.C. (Closed) | 44.7 |
Investment companies and other institutions | 44.3 |
Investment funds | 2.6 |
High-net-worth individuals and retail investors | 6.3 |
Treasury shares (KIPCO parent) | 2.1 |
The principal subsidiaries and associates of KIPCO are in the financial services and real estate sectors, and KIPCO also has a joint venture in the media sector. The remaining companies of the group and its associates operate in the service and industrial sectors.
The table below sets out the KIPCO's principal companies:
Financial services | Media | Real estate | |||
---|---|---|---|---|---|
United Gulf Holding Company | Gulf Insurance Group | Burgan Bank | OSN | United Real Estate Company | |
Geographic presence in MENA | 9 countries | 11 countries | 7 countries | 25 countries | 9 countries |
Shareholding | 93.0% | 45.4% | 63.0% | 87.6% | 72.5% |
The key elements of the group's strategy are to: [4]
The group and its associates have a presence in the following countries in the MENA region: [4]
Company | Present in |
---|---|
Burgan Bank | Kuwait, Iraq, Algeria, Tunisia, Turkey, Malta and Lebanon (branch of Bank of Baghdad) |
United Gulf Holding Co. | Bahrain, Kuwait, Tunisia, UAE, Syria, Malta, Morocco, Iraq and USA |
Gulf Insurance Group | Kuwait, Saudi Arabia, Lebanon, Egypt, Syria, Jordan, Bahrain, UAE, Iraq, Algeria and Turkey |
Panther Media Group Ltd (PMG) | Licensed to operate in 25 countries in the MENA region; however, it currently focuses on 7 core markets |
United Real Estate Company | Kuwait, Jordan, Egypt, Oman, Syria, UAE, Lebanon, Morocco and UK |
Jordan Kuwait Bank | Jordan, Cyprus and Palestine |
United Industries Company | Kuwait |
United Education Company | Kuwait |
KIPCO [43] | S&P | Moody's |
---|---|---|
Long Term | BBB- | Baa3 |
Short Term | A3 | Prime 3 |
Outlook | Negative | Stable |
The Protégés is a mentorship program designed to provide young people with opportunities to learn life and leadership skills, through combination of travel, lectures, group activities, challenges and games for around 6 weeks. Around 25 Protégés are selected based on a thorough screening process ensuring that they meet high standards of excellence. KIPCO is the strategic partner of the program and is supported by nine Group companies. [44]
Dyslexia Campaign is KIPCO's initiative for public awareness about Dyslexia. The campaign – which featured TV and press advertising to highlight the problems faced by those people suffering from dyslexia – was the first of its kind in the Persian Gulf region. [45] In 2008 KIPCO won an award for the campaign on dyslexia at Kuwait's first Corporate Social Responsibility (CSR) Awards. [46]
Investcorp is a global manager of alternative investment products, for private and institutional clients. Founded in Bahrain in 1982, the firm has offices in United States, United Kingdom, Saudi Arabia, Qatar, United Arab Emirates, India, China, Japan and Singapore. Investcorp's principal client base is in the six countries of the Gulf Cooperation Council, but it also has a growing base of institutional clients in North America, Europe, and Asia.
The Bank of Bahrain and Kuwait (BBK) was established on 16 March 1971 in both the Kingdom of Bahrain and the State of Kuwait. Its shareholders consist of the general public, the government of Bahrain, banks and investment companies in Kuwait. BBK engages in the provision of various services and banking products throughout its branches in Bahrain, Kuwait and India as well as its representative office in Dubai, United Arab Emirates.
The Yusuf Bin Ahmed Kanoo Group is a privately held business conglomerate established in 1890. It is one of the largest family-owned multinationals in the Middle East, with complementary businesses and strategic partnerships. It has a physical presence across the Middle East, North Africa, Europe and Asia, and a 4,000-strong workforce, covering a broad range of sectors. Its business groups include: Kanoo Capital, Industrial & Energy, Travel, Shipping & Logistics and Real Estate.
AmBank Group comprises AMMB Holdings Berhad is one of the largest banking groups in Malaysia whose core businesses are retail banking, wholesale banking, Islamic banking, and life and general insurance.
Boubyan Bank is an Islamic Bank in Kuwait established in 2004. Boubyan Bank has a paid up capital exceeding 196.5 million Kuwaitis Dinars . Boubyan Bank is one of the emerging banks in Kuwait and GCC, benefiting from its relation with National Bank of Kuwait, the major shareholder, which is ranked among the largest 300 banks worldwide. Boubyan Bank provides a variety of banking services to individuals, private, business and corporate customers. The main activities of Boubyan Bank includes accepting deposits, establishing investment funds, and trading in real estate. The Bank deals with all types of Islamic transactions, including:
Kuwait Finance House (KFH) was established in the State of Kuwait, in 1977, as the first bank operating in accordance with the Islamic Shari'a rulings. KFH is listed in Kuwait Stock Exchange (KSE), with a market capitalization of $8.2 billion as of May 2016. Assets total $55.52 billion and deposits amount to $34.97 billion
Mawarid Holding is a private Saudi investment company. It was established in 1968. Its headquarters are in Suleimania, Riyadh. It manages and controls investments in diversified businesses in financial services, telecommunications, satellite television and radio network, construction, general distribution and trading, catering and restaurants.
Watani Investment Company is a financial services firm with operations across the Middle East. NBK Capital was established in July 2005 as a fully owned subsidiary of the National Bank of Kuwait (NBK), the largest Kuwaiti bank and the highest rated in the Middle East.
The Bank of Baghdad is one of the largest commercial banks in Iraq. It was established in 1992.
Orbit Showtime Network commonly known as OSN, is a Dubai-based satellite TV company serving the Middle East and North Africa region. OSN mainly broadcasts programming from TV networks Paramount Global, Warner Bros. Discovery, NBCUniversal, Sony Pictures, DreamWorks and BBC; as well as regional, mostly Arabic, Turkish and Pinoy content.
KAMCO Investment Company KSC (KAMCO) was established in 1998 as a subsidiary of United Gulf Bank (UGB) – the investment banking subsidiary of Kuwait Projects (Holding) Company, i.e., KIPCO and specialises in asset management and financial services in Kuwait and the Middle East and North Africa (MENA). Having increased its share capital from KD 15 million to KD 20 million in June 2003, KAMCO was listed on the Kuwait Stock Exchange (KSE) in October of the same year. KAMCO's current capital stands at KD 26.33 million distributed among 263.3 million shares with a par value of 100 fils each.
GFH Financial Group, previously known as Gulf Finance House, is an Islamic investment bank with headquarters in Bahrain Financial Harbour, Bahrain.
SHUAA Capital psc is an asset management and investment banking platform.
Takaud Savings and Pensions B.S.C. is a specialist savings and pensions provider based in Bahrain. The company is licensed by the Central Bank of Bahrain (CBB).
Ahli United Bank is a regional bank based in Bahrain. Its head office is situated at Manama and is the largest bank in Bahrain. It is present in 8 countries in the Middle East and United Kingdom. Ahli United bank's ordinary shares are listed on Bahrain Stock Exchange since August 2000 and the Kuwait Stock Exchange since June 2006.
GFH Capital, formerly known as Injazat Capital, is a firm of private equity investors, advisors and fund managers, providing capital and strategic support for growth companies. GFH Capital is among the region’s private equity firms, and is licensed by the Dubai Financial Services Authority. Established by the Islamic Corporation for the Development of the Private Sector (ICD), an affiliate of the Islamic Development Bank Group (IDB) and GFH Financial Group, GFH Capital introduced structured private equity investing and Islamic finance to the Gulf Cooperation Council (GCC). GFH Capital has structured investments exceeding USD 8bn in over 40 companies across 25 countries.
Marmore Mena Intelligence is a research firm based in Chennai, India. It is a majority-owned subsidiary of Markaz, an asset management and investment banking institution that is headquartered in Kuwait. Marmore's research focused on financial markets, economic and sector studies, and policy analyses, with a primary focus on the Middle East and North African region (MENA).
Abu Dhabi Financial Group (ADFG) is a global investment management group, headquartered in Abu Dhabi.
The Tadawul Group is a private Qatari holding company based in Doha. It was founded in 2006 by Sheikh Thani bin Abdullah al-Thani and is headquartered in Ezdan Towers, in the West Bay area of Doha. Tadawul's portfolio of investment consists of real estate, banking and finance, consumer goods, media, industry, healthcare, insurance and leisure centers.
Investment Corporation of Dubai is the principal investment arm of the Government of Dubai focused on strengthening Dubai’s economy through long-term value and wealth creation and investing in global opportunities. Established in 2006, ICD manages the Government of Dubai Portfolio of commercial companies and investments. In 2022, ICD reported assets worth $320 billion and revenue of $73 billion. The Dubai-based corporation provides strategic oversight, develops and implements investment strategies and corporate governance policies, and operates in multiple sectors, including oil and gas, transportation, banking, and financial services.