INVESTMENT COMPANIES
The significance of the financial sector is set to grow, with efforts to boost its role coming to center stage.
Arzan VC is working on identifying and building a strong entrepreneurial ecosystem in the MENA region. Entrepreneurs in this region are in need of major financial and technical support, hence Arzan VC built its strategy and team to suit the market requirement. In the future, Arzan VC is expected to support entrepreneurs throughout MENA who are looking for early-stage funding. Kuwait is behind neighbor countries in supporting the creation of an entrepreneurial ecosystem. The government has established a fund of USD6 billion to support new business; however, its vision and execution plan is still not clear. Arzan VC reviewed around 300 opportunities last year alone and managed to invest in 14 deals. We are continuously looking for new investments and our target is to have a great investment every month.
We focus mostly on finance, securing funding for projects, restructuring debts for our clients, finding the funding to establish new small- and medium-sized enterprises or even larger ones, as well as helping companies fund their working capital. It is all about helping to finance companies and our clients' needs in terms of funding. Al-Riyada was established in 2008, when the global financial crisis made itself felt here in the GCC. Eventually, people saw that Islamic finance and its instruments were the safest investment tools around. After all, Islamic finance and lending is based on real existing assets. This really appealed to investors after the global crash and all the trouble with exotic financial instruments, such as CDOs. Islamic finance has proven to be a safe and popular alternative over the last eight years.
Our plan in 2017 is to reduce our investments in Europe and go back to the MENA region, Saudi Arabia, and Kuwait in particular. This is mainly due to our expectations with the euro, as well as Brexit. That is directly affecting our European investment strategy and we are trying to slow down our euro investments as a result. Of course, nobody knows exactly what will happen as a result of Brexit, but the expectations are on the negative side. That being said, we are not panicking about the euro or European investments. It is just on a strategy level that we are making alterations and changes. The US investments still look strong, with the dollar expected to strengthen with expected interest rate hikes by the Fed. As for the Middle East, I have a positive view, despite oil prices and geopolitical problems.
The group started off as Al Madina Holding and encompassed two listed companies called Al Madina and Ekttitab. By now, we have eight companies listed, namely Ekttitab, Al Salam, Al Madina, Petrogulf, Hits Telecom, Investors, Zima Investments, and Mayadeen—the only licensed shooting range in Kuwait, which we took over four months ago. Moreover, we have a market capital of over USD1 billion and have companies listed on the stock exchanges in Kuwait and Dubai, and will soon be one of the first foreign companies listed on the Egyptian Exchange. The reason we managed to turn from a relatively small investment group into the biggest Kuwaiti investment group with the highest amount of listed companies is that we took advantage of the 2008 financial crisis. In times of crises, companies often tend to accept external assistance, whether that means a takeover or consultation, and we went against the tide.
INVESTMENT COMPANIES
TABLE OF CONTENTS
Guest Speaker
Dato’ Sri Haji Mohammad Najib bin Tun Haji Abdul Razak, Prime Minister , Malaysia
TBY talks to Dato' Sri Haji Mohammad Najib bin Tun Haji Abdul Razak, Prime Minister of Malaysia, on the growing contribution that Islamic countries are making to the global economy and how Islamic financing can offer new opportunities to industry and academia.
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HE Khaled Nasser Abdullah Al-Roudan, Minister, Commerce and Industry (MoCI)
TBY talks to HE Khaled Nasser Abdullah Al-Roudan, Minister of Commerce and Industry (MoCI), on tools and strategies for diversifying the economy, the role of international players in supporting a wider range of sectors, and the rapidly developing food industry.
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HE Yousef Al-Ebraheem, Advisor , Al-Diwan Al-Amiri
TBY talks to HE Yousef Al-Ebraheem, Economic Advisor to the Al-Diwan Al-Amiri, on the need for a rejuvenation of Kuwait's infrastructure to support an economy that has come a long way and the role education will play in delivering the expertise required by the society.
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Dr. Khaled A. Mahdi, Secretary-General , Supreme Council for Planning & Development (GSSCPD)
TBY talks to Dr. Khaled A. Mahdi, Secretary General of the Supreme Council for Planning & Development (GSSCPD), on the breakdown of Kuwait's long-term economic plan, the KPIs that will benchmark its success, and what Vision 2035 means for the nature of the economy.
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Sheikh Dr. Meshaal Jaber Al Ahmed Al Sabah, Director General, Kuwait Direct Investment Promotion Authority (KDIPA)
TBY talks to Sheikh Dr. Meshaal Jaber Al Ahmed Al Sabah, Director General of the Kuwait Direct Investment Promotion Authority (KDIPA), on launching an investment promotion conference, attracting the right partners for PPP, and expectations for the year ahead.
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HE Dr. Mohammad M. Al-Zuhair, Executive Chairman, Kuwait National Fund for Small and Medium Enterprise Development
TBY talks to HE Dr. Mohammad M. Al-Zuhair, Executive Chairman of the Kuwait National Fund for Small and Medium Enterprise Development, on empowering young Kuwaitis, IT and entrepreneurialism, and the growth of fintech.
read articleFocus: Still all in the family?
Merchant families in Kuwait
Family-owned businesses play a major role in the Kuwaiti economy. However, with many approaching the third generation of management, they are starting to come across unique problems that may pose issues for the greater economy.
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HE Sheikh Abdullah Ahmad Al-Humoud Al-Sabah, Director, Environmental Public Authority (EPA)
TBY talks to HE Sheikh Abdullah Ahmad Al-Humoud Al-Sabah, Director of Environmental Public Authority (EPA), on how oil companies can contribute to Kuwait's vision on sustainability and the various projects that are coming to fruition.
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Dr. Samira S. Omar Asem, Director General, Kuwait Institute for Scientific Research (KISR)
TBY talks to Dr. Samira S. Omar Asem, Director General of the Kuwait Institute for Scientific Research (KISR), on commercializing the green innovations coming from R&D initiatives, the role of collaboration across multiple sectors, and projects that we should expect to see more of in the future.
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Khaled Abdulrazzaq Al Khaled, Vice-Chairman and CEO, Boursa Kuwait Company
TBY talks to Khaled Abdulrazzaq Al Khaled, Vice-Chairman and CEO of Boursa Kuwait Company, on the takeover of the Kuwait Stock Exchange and the role the bourse plays in both the privatization of government entities and as a source of capital for family businesses.
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HE Essam Abdul Mohsen Al-Marzouq, Minister, Oil & Minister of Electricity and Water
TBY talks to HE Essam Abdul Mohsen Al-Marzouq, Minister of Oil & Minister of Electricity and Water, on cooperation with other ministries, the private sector's role in energy, and upcoming regulations.
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Ghalib Shlash Safouq, Assistant Undersecretary for the Construction Projects Sector, Ministry of Public Works
TBY talks to Ghalib Shlash Safouq, Assistant Undersecretary for the Construction Projects Sector at the Ministry of Public Works, on Kuwaiti companies, the country's healthcare facilities, and the role of international companies.
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Khaled K. Al Mashaan, Vice-Chairman & CEO, ALARGAN International Real Estate Company
TBY talks to Khaled K. Al Mashaan, Vice-Chairman & CEO of ALARGAN International Real Estate Company, on drivers of growth, operating throughout the region, and real estate prices in Kuwait.
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Tawfiq Ahmed Bin Sultan, Chairman, Middle East Telecommunications Company (METCO)
TBY talks to Tawfiq Ahmed Bin Sultan, Chairman of the Middle East Telecommunications Company (METCO), on e-government potential, the future of the economy, and the state of technology uptake in Kuwait.
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Sheikh Yousef Abdullah Sabah Al-Nasser Al-Sabah, Director General, Kuwait Ports Authority (KPA)
TBY talks to Sheikh Yousef Abdullah Sabah Al-Nasser Al-Sabah, Director General of Kuwait Ports Authority (KPA), on his operational plans for the near future and turning Kuwait into a regional logistics hub.
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HE Khaled Nasser Abdullah Al-Roudan, Acting Minister, State for Youth Affairs
TBY talks to HE Khaled Nasser Abdullah Al-Roudan, Acting Minister of State for Youth Affairs, on e-platforms and blended learning programs, developing ICT skills, and preparing young people for tomorrow.
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Eng. Ali Hussein Al Youha, Secretary-General, National Council for Culture, Arts and Letters
TBY talks to Eng. Ali Hussein Al Youha, Secretary-General of the National Council for Culture, Arts and Letters, on the activities of the Council and works to preserve and enhance Kuwait's cultural heritage.
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