Kuwait Projects Company (Holding)

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$2,553 million (2018)^[1]
Net income	US$93 million (2018)^[1]
Total assets	US$34 billion (2018)^[1]
Total equity	US$3.3 billion (2018)^[1]
Number of employees	16000^[2]
Website	www.kipco.com 29°22′33″N 47°59′11″E / 29.37583°N 47.98639°E / 29.37583; 47.98639

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$34.2 billion as of 31 December 2018. 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.^[3]

History

KIPCO was incorporated on 2 August 1975 under Article 94 of the Kuwaiti Commercial Companies Code, Law No. 15 1960.^[4] 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.

Milestones

1988	Acquisition of United Gulf Bank (UGB)^[5]
1995	Acquisition of stake in United Real Estate Company (URC)^[6]
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^[7]
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^[8]
1999	Acquisition of stake in Wataniya Telecom^[9]
2006	Establishment of US$2 billion EMTN programme^[10]
2007	Sale of Wataniya Telecom
2009	Merger of Showtime and Orbit to create OSN^[11]
2009	Completion of a 7-year US$500 million bond issue under EMTN programme^[12]
2010	Completion of a 7-year US$500 million bond issue under EMTN programme^[13]
2010	Sale of 39.2% stake in GIC to Fairfax^[14]
2010	KIPCO acquires 34% direct stake in URC by subscribing to rights issue in Dec’10^[15]
2010	Acquisition of 40.3% stake in UIC, 28.4% during rights issue and 11.9% from KAMCO in Sep’10^[16]
2012	Burgan bank acquires 99.3% in Eurobank Tekfen (rebranded as Burgan Bank – Turkey)^[17]
2013	OSN acquires 100% stake in Pehla (region's largest provider of South Asian pay TV content)^[18]
2013	Burgan Bank & UGB jointly acquired ~49% stake in Fimbank, Malta^[19]
2013	UIC purchases additional 10.8% stake in Qurain Petrochemical Industries Company(QPIC)^[20]
2013	UIC divests 29% stake in SADAFCO for KD66 mn^[21]
2014	Completion of a 5-year US$500 million bond issue under EMTN programme^[22]
2014	UIC divests remaining 11% stake in SADAFCO for KD25mn
2014	Burgan Bank completed the issuance of US$500mn perpetual bond^[23]
2014	Burgan Bank successfully raised capital worth KD102.6 million through a rights issue^[24]
2015	OSN secures second Syndicated Financing Facility for US$400 million^[25]
2015	KIPCO through its subsidiary acquired 51.2% stake in Jordan Kuwait Bank from Burgan Bank^[26]
2016	KIPCO repays KD 80 million bond^[27]
2016	Completion of a 7-year US$500 million bond issue under EMTN programme^[28]
2016	Burgan Bank completed the issuance of a KWD 100 million Tier 2 Capital issuance^[29]
2016	GIG acquires 90% stake in Turkish non-life insurer^[30]
2016	Burgan Bank successfully completed issuance of 5 year, US$500mn bond under its Medium term notes programme^[31]
2016	KIPCO repaid US$500mn bond issued under the EMTN programme in October 2016
2017	Successfully completed issuance of 10 year US$500mn bond under its EMTN programme with simultaneous tender of ~53% of its EMTN 2019^[32]
2017	URC announces 40% acquisition in Insha'a Holding.^[33]
2017	United Gulf Bank (UGB) has undergone corporate reorganization (in September 2017) and has split its operations across a holding company - United Gulf Holding Company B.S.C. (UGHC) and the regulated banking entity- UGB.^[34]
2017	Completed first ever seven-year corporate dinar bond issue of KD 100 million maturing in December 2024^[35]
2018	Completed a five-year KD 100 million corporate dinar bond issue maturing in November 2023^[36]
2019	Announced a rights issue of 453 million fully underwritten shares^[37]
2019	Repaid US$ 500 million bond issued under EMTN program matured in February 2019^[38]
2019	KIPCO Completed its rights issue & raised KD 95.08 million in equity^[39]

Corporate governance

KIPCO is a strong supporter of promoting transparency of operations, thereby launching its annual Shafafiyah (transparency) investors’ forum in 2004.^[40] 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
Sheikha Futtouh Nasser Sabah Al Ahmad Al Sabah	Board director^[40]

Executive management

Name	Position
Faisal Hamad Al Ayyar	Vice chairman (executive)
Samer Subhi Khanachet	Group chief operating officer
Tariq Mohammad Abdulsalam	Chief executive officer, investments
Pinak Maitra	Group chief financial officer
Khaled Abdul Jabbar Al Sharrad	Group chief HR and administration officer, board secretary
Eric Schumacher	Group treasurer
Mohsen Ali Husain	Group chief audit executive
Mazen Isam Hawwa	Deputy group chief operating officer and group executive vice president – finance
Joe Kawkabani	Group chief strategic initiatives officer
Adel Jassem Al Waqayan	Treasurer
Osama Talat Al-Ghoussein	Senior vice president, banking
Tawfiq Ahmad Al Jarrah	Executive director - Hessah Al Mubarak District
Eman Mohammad Al Awadhi	Group communications director
Robert Drolet	Consultant ^[41]

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 30 June 2019. 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 2019:^[42]

	Percentage holding
Al Futtooh Holding Company K.S.C. (Closed)	44.7
Investment companies and other institutions	44.3
Investment funds	2.6
High-net-worth individuals and retail investors	6.3
Treasury shares (KIPCO parent)	2.1

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 Holding Company	Gulf Insurance Group	Burgan Bank	OSN	United Real Estate Company
Geographic presence in MENA	9 countries	11 countries	7 countries	25 countries	9 countries
Shareholding	93.0%	45.4%	63.0%	87.6%	72.5%

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 7 major Hollywood studios. As at 31 December 2018, OSN had around one million subscribers.
United Gulf Holding Company B.S.C. (UGH): UGH is a public Bahraini shareholding company. It operates as a non-financial holding company of the activities of KIPCO Group. Through its subsidiaries and associates it has interest in commercial and investment banking and asset management services, the holding company also manages a diversified portfolio of investments in private equity funds, private equities, structured products, trading portfolios.
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 2nd 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 and Gulfsat.^[4]

Business strategy

The key elements of the group's strategy are to:^[4]

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:^[4]

Company	Present in
Burgan Bank	Kuwait, Iraq, Algeria, Tunisia, Turkey, Malta and Lebanon (branch of Bank of Baghdad)
United Gulf Holding Co.	Bahrain, Kuwait, Tunisia, UAE, Syria, Malta, Morocco, Iraq and USA
Gulf Insurance Group	Kuwait, Saudi Arabia, Lebanon, Egypt, Syria, Jordan, Bahrain, UAE, Iraq, Algeria and Turkey
Panther Media Group Ltd (PMG)	Licensed to operate in 25 countries in the MENA region; however, it currently focuses on 7 core markets
United Real Estate Company	Kuwait, Jordan, Egypt, Oman, Syria, UAE, Lebanon, Morocco and UK
Jordan Kuwait Bank	Jordan, Cyprus and Palestine
United Industries Company	Kuwait
United Education Company	Kuwait

Credit rating

KIPCO^[43]	S&P	Moody's
Long Term	BBB-	Baa3
Short Term	A3	Prime 3
Outlook	Negative	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.^[44]

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 Persian Gulf region.^[45] In 2008 KIPCO won an award for the campaign on dyslexia at Kuwait's first Corporate Social Responsibility (CSR) Awards.^[46]