KIPCO

Kuwait Projects Company (Holding)

File:Kipco.png
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$2,047 million (2015)
Net income	US$175 million (2015)
Total assets	US$32 billion (2015)
Total equity	US$4.2 billion (2015)
Number of employees	12000
Website	www.kipco.com 29°22′33″N 47°59′11″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$33.2 billion as of 30 June 2016. 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.

History

KIPCO was incorporated on 2 August 1975 under Article 94 of the Kuwaiti Commercial Companies Code, Law No. 15 1960. 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.

Key Milestones

1988	Acquisition of United Gulf Bank (UGB)
1995	Acquisition of stake in United Real Estate Company (URC)
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
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
1999	Acquisition of stake in Wataniya Telecom
2006	Establishment of US$2 billion EMTN programme
2007	Sale of Wataniya Telecom
2009	Merger of Showtime and Orbit to create OSN
2009	Completion of a 7-year US$500 million bond issue under EMTN programme
2010	Completion of a 7-year US$500 million bond issue under EMTN programme
2010	Sale of 39.2% stake in GIC to Fairfax
2010	KIPCO acquires 34% direct stake in URC by subscribing to rights issue in Dec’10
2010	Acquisition of 40.3% stake in UIC, 28.4% during rights issue and 11.9% from KAMCO in Sep’10
2012	Burgan bank acquires 99.3% in Eurobank Tekfen (rebranded as Burgan Bank – Turkey)
2013	OSN acquires 100% stake in Pehla (region’s largest provider of South Asian pay TV content)
2013	Burgan Bank & UGB jointly acquired ~49% stake in Fimbank, Malta
2013	UIC purchases additional 10.8% stake in Qurain Petrochemical Industries Company(QPIC)
2013	UIC divests 29% stake in SADAFCO for KD66 mn
2014	Completion of a 5-year US$500 million bond issue under EMTN programme
2014	UIC divests remaining 11% stake in SADAFCO for KD25mn
2014	Burgan Bank completed the issuance of USD500mn perpetual bond
2014	Burgan Bank successfully raised capital worth KD102.6 million through a rights issue
2015	OSN secures second Syndicated Financing Facility for US$400 million
2015	KIPCO through its subsidiary acquired 51.2% stake in Jordan Kuwait Bank from Burgan Bank
2016	KIPCO repays KD 80 million bond
2016	Completion of a 7-year US$500 million bond issue under EMTN programme
2016	Burgan Bank completed the issuance of a KWD 100 million Tier 2 Capital issuance

Corporate Governance

KIPCO is a strong supporter of promoting transparency of operations, thereby launching its annual Shafafiyah (transparency) investors’ forum in 2004. 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.

Board of Directors

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
Sheikh Sabah Nasser Sabah Al Ahmad Al Sabah	Board Director

Executive Management

Name	Position
Faisal Hamad Al Ayyar	Vice Chairman (Executive)
Samer Subhi Khanachet	Group Chief Operating Officer
Masaud Mahmoud Jowhar Hayat	Chief Executive Officer, Banking
Tariq Mohammad Abdulsalam	Chief Executive Officer, Investments
Pinak Maitra	Group Chief Financial Officer
Khaled Abdul Jabbar Al Sharrad	Group Chief HR and Administration Officer
Declan Sawey	Group Treasurer
Mohsen Ali Husain	Group Chief Audit Executive
Mazen Isam Hawwa	Group Senior Vice President, Finance and Operations
Robert Drolet	Senior Vice President, Technology and Media
Adel Jassem Al Waqayan	Treasurer
Osama Talat Al-Ghoussein	Senior Vice President, Banking
Eman Mohammad Al Awadhi	Group Communications Director
Iqbal Mohamed	President, United Gulf Management Inc. USA

Shareholding Structure

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 31 December 2015. 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 2016:

	Percentage Holding
Al Futtooh Holding Company K.S.C. (Closed)	44.7
Investment Companies & Other institutions	39.9
Investment Funds	7.1
High Net Worth Individuals & Retail Investors	6.5
Treasury shares (KIPCO Parent)	1.8

Group Structure

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 Bank	Gulf Insurance Group	Burgan Bank	OSN	United Real Estate Company
Geographic presence in MENA	7 countries	10 countries	8 countries	24 countries	8 countries
Shareholding	96.3%	45.6%	64.6%	60.5%	72.0%

Principal Companies/ Key Subs and Associates

• Burgan Bank: Burgan Bank is the 2nd largest conventional bank in Kuwait in terms of assets offering a full range of banking services to both retail and commercial customers. It operates under four divisions which are corporate banking, retail banking, private banking and investment banking and treasury.
• Panther Media Group (PMG): PMG is the largest digital satellite premium Pay TV operator in MENA region operating under the brand name "OSN". It offers exclusive Western and Arabic content and has exclusive contracts with all 8 major Hollywood studios. As at 30 June 2016, OSN had over one million subscribers.
• United Gulf Bank (UGB): UGB is a leading asset management and investment banking group, with operations spanning the MENA region. The bank engages primarily in asset and fund management, investment banking, private equity, and corporate finance.
• Gulf Insurance Group (GIG): GIG is the market leader in Kuwait (by GPW and Direct Premiums), Bahrain and Jordan (by GPW) and Egypt (by Technical profit) among the private sector. GIG's product portfolio includes marine, aviation, property, casualty, motor, life and health insurance.
• United Real Estate Company (URC): URC is the 3rd largest listed real estate player on KSE in terms of assets. URC is an integrated real estate company, which invests in, manages and develops real estate properties in Kuwait and within the MENA region.
• United Industries Company (UIC): UIC invests in the downstream industries sector in Kuwait and the GCC states and it operates a diversified portfolio of investments in the energy, food and basic industries sectors.
• Others: KIPCO directly or indirectly holds more than 20 companies which are engaged in other businesses. The major entities engaged in other businesses are Advance Technology Company, United Education Company, Kuwait United Consultancy Company, United Capital Transport Company etc.

Business Strategy

The key elements of the Group's strategy are to:

• Leverage its position and reputation in the GCC and wider MENA regions to capture further growth in these regions
• Acquire, create, build and selectively sell businesses in sectors that capitalise on regional opportunities
• Exercise management control over businesses
• Maximise value from businesses with a medium-to long-term horizon

Regional Presence

The Group and its associates have a presence in the following countries in the MENA region:

Company	Present in
Burgan Bank	Kuwait, Iraq, Algeria, Tunisia, Turkey, Malta, Lebanon (branch of Bank of Baghdad) and Libya (representative office of Tunis International Bank)
United Gulf Bank	Bahrain, Kuwait, Tunisia, UAE, Syria, Malta and Morocco
Gulf Insurance Group	Kuwait, Saudi Arabia, Lebanon, Egypt, Syria, Jordan, Bahrain, UAE, Iraq and Algeria
Panther Media Group Ltd (PMG)	Licensed to operate in 24 countries in the MENA region; however, it currently operates in 19 countries
United Real Estate Company	Kuwait, Jordan, Egypt, Oman, Syria, UAE, and Lebanon
United Industries Company	Kuwait

Credit Rating

KIPCO	S&P	Moody’s
Long Term	BBB-	Baa3
Short Term	A3	Prime 3
Outlook	Stable	Stable

Corporate Social Responsibility

The Protégés Program

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.

Dyslexia Campaign

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 Gulf region. In 2008 KIPCO won an award for the campaign on dyslexia at Kuwait's first Corporate Social Responsibility (CSR) Awards.

External links

• KIPCO official site