The company’s 2009 total income was KD17.8m, compared to a net loss of KD19.2m in the previous year. The 2009 performance was mainly driven by the gains in its hedge fund and derivatives portfolio leading to KD8.6m and KD5.9m on realized and unrealized profits in comparison with realized and unrealized loss of KD2.9m and KD19.9m respectively in the previous year. Other income contributed another KD2.9m in comparison with KD2.5m made during the previous year.
Managing Director Ahmad A. Al Hamad said, “KCIC had a record year since inception four years ago by continuing to source and pursue unique opportunities in Asia without losing sight of its thorough, diligent and strong risk management. Our performance was achieved while maintaining one of the healthiest balance sheets among our peer group utilizing nominal leverage and maintaining a robust cash balance.
“KCIC’s ability to generate a return on equity of 11% in difficult market conditions is testament to the success of the business strategy, and the diligence of its employees”.
Trade and investment between the Middle East and emerging Asia had quadrupled in the last 10 years, and researchers now expect it to rise further over the next decade as emerging Asia quickly assumes its position as one of the world’s leading growth drivers.
Al Hamad added, “The coming year will represent an important milestone for KCIC, the firm looks to developing its inroads into the Asian markets while remaining focused on servicing its institutional clients in the Gulf. We believe that Asia will carry on offering attractive opportunities and investors will continue to see Asia as a choice destination for their investment. This coming year will also be the year in which KCIC will open its representative office in China”.
While other markets continued to witness several periods of negative or no growth, Asia witnessed astonishing rebounds in 2009 across all Asian markets, excluding Japan, with growth rates averaging 5.9%.
Al Hamad said, “This validates KCIC’s strategy as the weight of demographics became an important factor in global growth. We are witnessing a paradigm shift towards Asia’s ability to produce and consume its own goods and services.
“KCIC’s vision has and will continue to be focused on the domestic consumption theme while building internal capabilities in sectors such as real estate, financial services, infrastructure and energy.
“With all these indicators in place, KCIC, an Asia specialist, stands at the gateway to Asia, connecting Gulf Capital to investment opportunities in Asia and connecting Asia to opportunities in the Middle East.”
Listed on the Kuwait Stock Exchange, KCIC is an investment company founded with a capital of KD80m an Emiree Decree with a mandate to develop investment opportunities in Asia towards building an Asia focused asset management company. The public company employs a team of Asian specialists and currently manages assets in excess of $450m. Key shareholders include The Kuwait Investment Authority, the Sovereign Wealth Fund of Kuwait, National Investment Company, one of the leading investment banks in the Middle East, and Al Ghanim Industries, one of the largest conglomerates in the Middle East.
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