Bader Al Kharafi: National Investments Company Generates KD8.8 million in the first nine months of 2022

Al Kharafi:

• The company’s results align with its steady track and constant progress, as it has achieved a net profit of KD8.8 million, 11 fils per share since the beginning of the year and until 30 September 30, 2022.

 

• National Investments Company is taking proactive steps towards operating profits by focusing on basic investment activities and asset management services while searching for new investment opportunities.

 

• The rising of the leading financial indicators proves the successful implementation of our strategy. And our shareholders and customers are at the top of our priorities.

 

• NIC seeks profitable investment opportunities and fruitful collaborations to generate healthy cash flows and sustainable returns for shareholders and customers.

 

Al Mukhaizim:

• We provide investment products and services that suit our customers’ needs and meet their expectations safely and distinctly.

 

• National Investments Company has played the investment advisor and central coordinator role for several successful deals and mergers

 

 

The National Investments Company has announced the financial results for the nine months ending on September 30, 2022. The positive results achieved reflect the long-term investment strategy, which focuses on providing products and services that meet the customers’ needs and expectations while establishing more strategic partnerships and maintaining its local and international investments

Solid Financial Position

Mr. Bader Nasser Al-Kharafi, Chairman of the National Investments Company, highlighted that the positive financial results the company achieved during the first nine months of 2022 come in line with the steady track and constant progress of the company, which is signified in crucial pillars, including sustainability, digital transformation, seizing investment opportunities and creating long-term added value, which leads to the accomplishments achieved and confirms the successful strategic plans followed by NIC and the wise the board’s directions that focus on customers and shareholders needs as well as expectations.

 

Financial Indicators:

Al-Kharafi explained that NIC continued to achieve solid operational performance across all major business sectors and gained KD8.8 million, 11 fils per share, during the first nine months of this year.

Al-Kharafi pointed out that the company’s total assets amounted to KD268.6 and that the total managed assets have reached KD1.168 billion compared to KD1.129 billion during the same period last year. The total shareholders’ equity of the parent company has reached KD195.2 million, and other comprehensive revenues amounted to KD5.8 million, despite the challenges that the region has witnessed since the beginning of the year until now, considering the distribution of the cash dividends for the year 2021, approximately KD36 million.

Al-Kharafi went on to say that the financial indicators reflect our successful plans to increase market share and raise our ability to grow in light of the clear and wise strategy that seeks profitable investments and successful cooperation opportunities which achieve the most significant benefits possible and support our growth plans and positive development on the long term, especially with the increasing reliance on digital solutions, emerging technologies, and digital trends in the region’s markets. This approach ensures healthy cash flow and sustainable returns for the company’s shareholders and customers as one of the leading investment companies in Kuwait and the region aiming at developing operating profits through our products, which has contributed to achieving the company’s revenue growth over the past years, in addition to focusing on basic investment activities and asset management services through local or regional investment expansions, via specific plans, as well as introducing innovative products and financial instruments in the local market to achieve diversification in sources of income.

 

Global Recognition

NIC’s outstanding performance was globally recognized. The company has won several prestigious awards for its superior services and ongoing achievements. In a culmination of the company’s efforts in servicing its clients, National Investments Company has won the Best Investment Banking Company in Kuwait for the year 2022 by World Finance magazine. Recognizing the outstanding performance of Al Wataniya Fund in 2022, The company has received the ‘Best Investment Product Award’ from the renowned platform Global Banking and Finance and the Excellence Award in Enterprise Risk Management; finally, NIC has achieved the ‘Most Innovative Company in the Field of Real Estate Development’ in Kuwait from International Finance.

Strategic Efficiency

Al Kharafi concluded: “We are taking serious proactive steps to create new growth tracks and enhance our leadership position by creating a sustainable impact, adding value and an impact across the region, expanding the scope of our services to include other sectors and markets. In addition to the company’s efforts in reducing risks, maintaining strong capitalization and liquidity levels while enhancing capacity to deal with them through innovation, and reaching the highest levels of operational efficiency through effective financial management in that faces crises and economic challenges whereas achieving excellence in serving our customers and shareholders who form our priority. We thank them for their trust and continuous support of NIC.”

He also expressed his sincere appreciation to the executive management and the whole team for their great effort to achieve excellence and maintain NIC’s leadership role.

 

 

Carefully Selected Management and Studies

Member of the Board and CEO of the National Investments Company, Mr. Fahad Abdul Rahman Al-Mukhaizim, said: “We have concluded the first nine months of this year by achieving positive results that confirm the positive impact of the company’s plans, as we managed to attract a large segment of investors during the third quarter of the year 2022, and therefore increased the number of individuals and institutions wishing to invest in different investment portfolios managed by NIC for locally and globally.”

It is worth mentioning that most of the company’s funds have achieved profits, some of which have exceeded both standard and market indices, despite the fluctuation witnessed in all global and regional markets, however, the managed funds achieved positive and stable returns in the first nine months of 2022, and the Financial Instruments team was able to sign a Market Maker agreement with eight companies listed on Boursa Kuwait, including companies eligible to qualify for the Premiere Market, indicating that the number of companies in which NIC played the role of the Market Maker has now reached about ten companies so that our company occupies the second place as the most significant investment company in providing Market Maker service Boursa Kuwait.

 

Successful Deals

Al Mukhaizim has stated that the Investment Banking sector has finalized several successful deals. The Financial Advisory Services department was the primary coordinator and listing advisor for Ali Al-Ghanim Sons Automotive Company. It covered the subscription by 10.8 times the volume of offered shares, equivalent to KD1.1 billion. The company’s shares were listed on Boursa Kuwait in June 2022. The department also worked on the capital increase offering of the National Consumer Holding Company (K.S.C.) by KD21 million, which was 100% covered, in addition to the private offering of Al-Rai Media Group Company (K.S.C.) of which NIC has played the issuance manager and underwriting agent to increase the capital by KD3 million, in addition to several other deals. Al Mukhaizim also mentioned that NIC has succeeded in playing the investment advisor role for the merger process between Boubyan Petrochemical Company (K.S.C.) and the Educational Holding Group (K.S.C.), as well as the investment advisor role for the merger between Al-Safat Investment Company (K.S.C.) and Cape Corp Investments (K.S.C.) in addition to preparing for a few other mergers.

 

As for NIC’s Alternative Investments Department, it has undertaken two investment deals; a real estate fund in partnership with ‘Soor Capital focuses on acquiring real estate assets of high quality within the retail sector in the USA under category (A). The portfolio size is estimated at USD155 million, with an annual return of 8%. The second investment deal is with ‘Money Flows’ company, which falls under the venture capital sector, a collaborative platform for money management and lending that works entirely digitally and provides users with competitive financial solutions in Egypt, reshaping a non-official financing product by providing simple digital solutions that suit the new generation’s mentality.

 

Launching the Electronic Real Estate System

On the real estate investment sector level, Al-Mukhaizeem said: “We have started a new campaign to develop and improve all assets of our real estate portfolio to increase revenues and property values. The company also maintained good occupancy rates, reaching 90% and the collection rate to 85%, during the third quarter of 2016. In 2022, we worked on a project to develop the Al Wataniya resort to match the best local resorts. We launched the new electronic real estate system, which helps develop and improve work procedures and automated systems, and operate the electronic payment gateway through the company’s website, which aims to facilitate tenant payments”.

 

 

Digital Trends

Al-Mukhaizim added that the company had modernized the Digital Subscription Management service and focused on improving and updating the service with the Civil Information Authority, banks, and approved clearing agencies. We have also updated the digital trading program ‘NICTRADE’ to include new options for clients to be updated regarding the portfolio’s components, a tool to evaluate the assets, charts of financial markets, and many other features while aiming at smooth and flexible usage by clients.