1

Kuwait

2

Kuwait About Kuwait:

Total population: 3.4 M (1/3 nationals)

Free democratic system

Independent Juridical system

Modern Infrastructure.

3

Kuwait

Oil reservoirs 9% of the international oil resources.

Member of WTO.

New tax law.

Foreign investor law.

4

Kuwait Economy - overview:

Kuwait is a small, rich, relatively open economy with self-reported crude oil reserves of about 104 billion barrels - 9% of world reserves. Petroleum accounts for nearly half of GDP, 95% of export revenues, and 80% of government income. High oil prices in recent years have helped build Kuwait's budget and trade surpluses and foreign reserves. As a result of this positive fiscal situation, the need for economic reforms is less urgent and the government has not earnestly pushed through new initiatives. Despite its vast oil reserves.In May 2007 Kuwait changed its currency peg from the US dollar to a basket of currencies in order to curb inflation and to reduce its vulnerability to external shocks.

5

Kuwait Major Economic Indicators (2008):

Total GDP (at current prices) $ 113 BN.

Income per capita $ 37,000.

GDP growth at current prices 14.1%.

Real GDP growth 3.8%.

Inflation 7.5%.

Unemployment 1.8%. Sources: CBK Report

6

Kuwait Summary of Export: (BN KD)

2008 

Oil Exports91%

Non-OilExports

9%

EXPORTS BN KD

Period Oil Exports

(1) Non-Oil Exports

(2) Total Exports

2008 65 4 69

Sources: CBK Report KD = 3.4 $

7

Kuwait Budget 2007 – 2008:

Total revenue $ 69 BN – Oil represents

$ 65 BN.

Total expenditure

$ 27 BN.

Surplus $ 42 BN.

Totl Revenue 69 BN

Total ,expenditure

27

Surplus, 42

Totl Revenue 69 BN

,others represents4

Oil represents, 65

Sources: CBK Report

8

Kuwait

Banking and Financial Sectors (2007):

(million KD)

# SectorsTotal Balance

SheetPrivate sector

depositsNumbers

1 Banking: 35,555 20,404 9

2Investment companies: 16,041 -- 87

Total: 54,129 20,404 96

Sources: CBK Report KD = 3.4 $

9

KSE Kuwait Stock Exchange (KSE):

The Kuwait Stock Exchange enjoys an independent judicial personality with the right of litigation in a mode facilitating the performance of its functions for the purpose of realizing the objectives of its organization in the best manner within the scope of regulations and laws governing the Stock Exchange operations.

The Stock Exchange within its activity act to direct and rationalize dealing in stocks and securities, within the scope of its powers in order to develop and stabilize dealing in securities in a manner securing safe, easy and accurate transactions so as to avoid any confusion in dealings.

Sources: KSE

10

KSE Market capitalization (2008): KD 59.6 BN

Daily average trading (2008):about 10,000 Deals

Brokerage fees (2008): %0.125 up to 50,000 KD,than %0.1 will charge.

Number of listed companies (2008): 209

Sources: KSE

11

KSE

KUWAIT SECURITIES MARKET: 2007

Value of Traded Shares(Million Dinars) 37,293

Volume of Traded Shares(Million Dinars) 70,437

Number of Deals(Thousand Deals) 2,316

Sources: KSE Annual Report 2007

12

KSE Securities Market, Volume and Number of

Deals of Traded Shares: (Official Market)

940,000

960,000

980,000

1,000,000

1,020,000

1,040,000

1,060,000

1,080,000

1,100,000

Deals in 2007 Deals in 2007

RealState20.95%

insurance0.14%

industry9.96%

Services22.74%

Food1.72%

Banks7.48%

NonKuw aiti6.52%

Investments30.50%

Sources: KSE Annual Report 2007

13

KSE Securities Market, Volume and Number of

Traded Shares: (Official Market)

Shares Current

Insurance0.12%RealState

26.48%

Industry7.22%

Investment32.10%

Banks6.35%

food1.41%

services18.89%

non kuw aitiا7.42%

-

5,000,000,000

10,000,000,000

15,000,000,000

20,000,000,000

25,000,000,000

30,000,000,000

35,000,000,000

40,000,000,000

shares current 2007

Sources: KSE Annual Report 2007

14

KSE Securities Market, Current Shares Price

Index:

17,600,000,000

17,800,000,000

18,000,000,000

18,200,000,000

18,400,000,000

18,600,000,000

18,800,000,000

19,000,000,000

ولاالفصالن

يلثانفاصالن

Current Shares Price 2007 Current shares Price 2007

Banks14.63%

Insurance0.13%

RealState13.37%

Industry10.82%

Services29.02%

Non Kuw aiti5.18%Food

1.20%

Investment25.65%

Sources: KSE Annual Report 2007

15

KCC

Kuwait Clearing Company (KCC) Role:

Provide reliable clearing, settlement, central depository and shares registration.

Settlement and clearing trading for options, future contracts, bonds and other derivatives.

16

KCC

Paying dividends to shareholders of listed companies.

IPO’s underwriting.

Develop e-trade, e-settlement and SWIFT in the stock market.

17

Board of Directors

General Manager

AGM Operations AGM Support

Head Clearing & Settlement/

IPO

Head Custody & Share Registrar

HeadFund Trustee

Head Derivatives Head HR/Admin Head Finance Head Treasury Head Settlement & Reconciliation

Manager Business

Planning & Development

Manager New Projects

Manager Database

Administrator

Legal UnitCustomer

Relations Unit

Internal Audit Unit

AGM Information Technology

Kuwait Clearing Company chart:

KCC

18

KCC

Date of inception: 1982

Equity Shareholders: (December 2007) Capital Paid: 4,500,000 KD Capital Premium: 5,625,000 KD Reserves: 9,000,000 KD

19

KCC Shareholders:

PercentagePortionSharesName#27.8%512,500,000Kuwait Stock Exchange116.7%37,500,000Kuwait Investment Projects Co.211.1%25,000,000Kuwait Investment Co.311.1%25,000,000Kuwait International Bank45.6%12,500,000Commercial Bank of Kuwait55.6%12,500,000IFA65.6%12,500,000Bahrain & Kuwait Bank75.6%12,500,000PIFSS85.6%12,500,000IFC95.6%12,500,000Al Ahli Bank of Kuwait10100%1845,000,000Total

20

KCC

Number of employees: 146

Number of funds and trustees: 40

Number of companies in registrar: 226

21

ThanThanksks