12-05-2025
Markaz records Total Revenue of KD 6.49 million for Q1-2025
Kuwait Financial Centre 'Markaz' (KSE: Markaz, Reuters: Bloomberg: MARKAZ: KK) reported its financial results for Q1-2025 with a Total Revenue of KD 6.49 million with an increase of 7%, as compared to KD 6.06 million in Q1-2024. The net profit attributable to shareholders of Markaz was KD 2.78 million, compared to KD 2.77 million in the same period last year, and earnings per share was 6 Fils for Q1-2025.
Mr. Ali H. Khalil, Markaz's CEO, stated: 'Regional equity markets demonstrated resilience amidst global uncertainties. Although GCC equities posted a marginal 0.77% gain during the first quarter of 2025, the region outperformed global equities, which declined by 1.62%. Kuwait led the regional performance with a strong 9.85% return, which was underpinned by fiscal reforms, structural initiatives and positive momentum in the banking sector. Despite external challenges from global trade tensions, interest rate uncertainty and oil price volatility, the GCC region continues to maintain a stable foundation, anchored by economic diversification efforts and strategic investments in non-oil sectors. At Markaz, we remained disciplined and agile in navigating these dynamics, ensuring that our business fundamentals remained strong. We are optimistic about the outlook for the region, given easing financial conditions, sustained reform agendas and consistent domestic demand. Our focus continues to be on delivering sustainable value for our stakeholders through high quality execution, strategic growth and prudent risk management.
Markaz's Asset Management fees for Q1-2025 were KD 1.67 million as compared to KD 1.69 million for the same period last year. Investment Banking and Advisory fees for Q1-2025 were KD 0.348 million as compared to KD 0.101 million for Q1-2024, reflecting an increase of 245%. This performance reflects the strength of our diversified platform and disciplined focus on consistent execution across business verticals.
In asset management, our equity mutual funds continued to deliver stable returns amid heightened market volatility. MIDAF, Mumtaz and the Markaz Islamic Fund recorded returns of 5.02%, 5.28%, and 7.21% respectively, supported by prudent investment strategies and active portfolio management. The Forsa Financial Fund posted a return of 6.29% during the quarter.
In investment banking, Markaz successfully executed key mandates, including the debut Kuwaiti Dinar-denominated bond issuance for a multilateral development bank, further strengthening our capital markets capabilities and client trust. The Advisory team is also working on several transactions including valuations and M&A.
In real estate, our regional and international portfolios remained operationally strong, maintaining stable occupancy levels, steady rental yields and consistent collection ratios. We continue to focus on proactive asset management strategies while exploring new opportunities in private credit and development financing to diversify assets and enhance long-term returns.
Looking ahead, we remain optimistic about the opportunities presented by favorable demographic trends, sustained infrastructure investments and continued economic diversification across the GCC. Markaz's focus remains on delivering differentiated investment solutions, expanding our advisory capabilities and maintaining strategic responsiveness to create sustainable long-term value.'
Mr. Abdullatif W. Al-Nusif, Managing Director, Wealth Management and Business Development at Markaz, stated: 'Markaz continued to strengthen its wealth management services during the first quarter of 2025. Assets Under Management (AUM) reached approximately KD 1.44 billion as of 31 March 2025, reflecting an increase of 11% compared to KD 1.30 billion in Q1 2024. This growth is underpinned by our disciplined execution and client-focused strategy.
We continue to expand our offering across private markets, alternative investments and bespoke advisory services to meet the increasingly sophisticated needs of our clients. Digital initiatives are further enhancing the overall client experience and improving operational efficiencies. By reinforcing relationships with institutional and high net worth individual clients and aligning our solutions with market trends, Markaz is well-positioned to deliver superior investment outcomes and maintain its leadership position in wealth creation.'
