2023-11-12 10:44:20
Kuwait: Kuwait Financial Center Company “Markaz” (Kuwait Stock Exchange: Markaz, Archyde.com: MARKZ.KW, Bloomberg: MARKAZ: KK) announced its financial results for the first nine months ending on September 30, 2023, with total revenues reaching 14.04 million Kuwaiti dinars in the first nine months. , compared to a total of 11.24 million Kuwaiti dinars in the same period in 2022, an increase of 24.9% on an annual basis. Net profit amounted to 0.71 million Kuwaiti dinars for the first nine months of 2023, compared to 0.53 million Kuwaiti dinars in the same period of 2022.
Mr. Dirar Yousef Al-Ghanim, Chairman of the Board of Directors, said: “The escalation of geopolitical tensions and humanitarian unrest in the region has contributed to making the investment landscape more challenging and complex. During the first nine months, the performance of the Standard & Poor’s Gulf Composite Index remained stable, while its performance declined in the third quarter of -1.55% in 2023. The Kuwaiti general market index (total return) declined by -2% in the first nine months of 2023, and -1.17% in the third quarter of the year. This decline was affected by the rise in interest rates by the Federal Reserve. It is not certain in which direction interest rates will move, especially in light of increasing political pressures to reduce inflation rates and avoid recession, but it is expected to cast a shadow on regional and global markets.
During the first nine months of 2023, Markaz completed the exit process from two industrial real estate projects in the United States of America and the Netherlands, achieving for clients a net weighted average internal rate of return of 18.6% and 11.9%, respectively, despite continuing economic challenges. The Center recently invested approximately US$145 million in the international real estate sector in residential, industrial and senior housing projects. The Center also continued its investment activity in the Gulf Cooperation Council countries to seize available opportunities and keep pace with developments in the markets in general and the Kingdom of Saudi Arabia in particular. Total assets under management increased by 1.5% to KWD 1.16 billion, as of September 30, 2023, compared to the same period in 2022.
During the third quarter of 2023, Markaz successfully completed, as issuance manager and subscription agent, the issuance of bonds worth 50 million dinars for a period of 10 years, redeemable following 5 years. It is considered the first tranche within the program of issuing supporting debt bonds within the second tranche of capital issued in Kuwaiti dinars at a value of 100 million KWD A maximum, and it is the first issue of its kind denominated in the Kuwaiti dinar.
The Center has a solid business model that combines management fees, consulting revenues and profits from real estate investments. An essential part of our culture is to make risk-adjusted investment decisions, to support clients in achieving their financial goals, with increasing challenges in the asset management sector and investment activity.
#Corporate data
An overview of the Kuwait Financial Center “Markaz“
Kuwait Financial Center (K.S.C.P.) (“Markaz”) was established in 1974 to become one of the region’s leading financial institutions in the fields of asset management and investment banking. “Markaz” now manages assets totaling 1.16 billion Kuwaiti dinars (3.75 billion US dollars) as of September 30, 2023. “Markaz” was listed on the Kuwait Stock Exchange in 1997. “Markaz” has succeeded over the years in achieving qualitative transformations by giving it a new meaning. The concept of innovation in the field of financial services, through creating investment tools with unique characteristics and opening new investment gateways that suit investors’ requirements. Among these investment tools is the launch of the “Markaz Excellent Returns Fund – Mumtaz”, which is the first local joint equity fund, the “Markaz Real Estate Fund”, the first open-ended real estate investment fund in Kuwait, and the “Forsa Financial Fund”, which was launched by “Markaz” the Fund. The first and only options fund in the Gulf region since 2005, and the Gulf Momentum Fund, the first fund of its kind to invest in Kuwait and the Gulf markets according to the Momentum methodology.
For more information please contact:
Sondos Saad
Media and Communications Department
Kuwait Financial Center Company “Markaz”
1699788265
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