2023-09-17 12:48:51
To get out of the state of decline and fluctuation
Dubai – Al Arabiya.net
Published on: September 17, 2023: 02:43 PM GST Last updated: September 17, 2023: 04:48 PM GST
Senior Vice President of Asset Management at the National Investments Company in Kuwait, Amr Sarhan, said that the Kuwaiti market now needs new incentives to get out of the state of decline and volatility that is currently overwhelming it.
During an interview with Al Arabiya, Sarhan confirmed that the dilemma of rising interest rates locally and globally to the levels we are witnessing now led to a decline in bank shares in the Kuwaiti market, especially since regarding 3 three years ago interest rates were at their lowest levels, and therefore the companies and investors who took loans Long term loans in that period pay less interest, and their money deposited in banks is now earning more interest, and this increases the pressure on the banks.
He continued: Despite what the banking sector is suffering, it will remain the economic backbone of the Kuwaiti market, and investors’ bet will not abandon the banks, even with rising interest rates and inflation, in addition to some major companies such as “Egility” and “Zain,” which will also continue to represent a factor of attraction for investors.
Sarhan confirmed that the step taken by the Kuwaiti company, Zain, to raise its ownership in the UAE company, Task Towers, to regarding 93% indicates that Zain is heading towards long-term investment in the Emirates.
Earlier today, Sunday, Zain announced that it had raised its stake in Task Towers from 83.47% to 92.87%.
The company added in a disclosure to the Kuwait Stock Exchange that Task Towers will continue to operate as an independent entity, as the majority of the board members are not affiliated with Zain Group, and the company has its own executive team.
Zain said that Task Towers will remain an associate company of the group due to the nature of its shareholding in the company and the independent operating model, quoting the Arab World News Agency.
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