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Zawya
17-03-2025
- Business
- Zawya
Markaz: 2024 marks a significant milestone commemorating the company's legacy in operational excellence, innovation and visionary approach
Kuwait: Kuwait Financial Centre 'Markaz' held its ordinary Annual General Assembly meeting on Sunday, 16 March 2025, with a (73.1%) attendance. The assembly approved all items of the agenda, including the Board of Directors' recommendation to distribute cash dividends of 7% per nominal value of the share or 7 fils per share. In 2024, Markaz recorded Total Revenues of KD 20.31 million, compared to KD 26.32 million in 2023. Net profit attributable to shareholders rose to KD 4.46 million, compared to KD 4.15 million in the previous year. Assets under management (AUM) increased by 16% y-o-y since 31 December 2023, reaching KD 1.41 billion. Commenting on the results, Markaz's Chairman, Mr. Diraar Y. Alghanim, said: 'The year 2024 marked the 50th anniversary of Markaz, a significant milestone reflecting five decades of dedication to excellence, innovation, and creating value for stakeholders. Over the years, Markaz has adapted effectively to changing market dynamics, ensuring stability and growth through strategic initiatives and prudent decision-making. In recognition of its capabilities, Markaz earned nine prestigious awards in 2024 from leading organizations such as EMEA Finance, MEED, Euromoney, and Global Finance. These recognitions span categories like wealth management, investment banking, real estate, and digital transformation, reflecting Markaz's consistent leadership and commitment to maintaining industry excellence.' Mr. Alghanim added: 'GCC economies demonstrated resilience throughout the year, with the MSCI GCC Countries Domestic Index rising by 5.9%. Although this growth was modest, it reflects stable market sentiment and the region's capacity to effectively manage global economic challenges. The global economic environment in 2024 presented a blend of opportunities and challenges. Global GDP growth was projected to be 3.2%, bolstered by easing inflation in advanced economies due to effective monetary policies. Resilient emerging markets benefited from gradual improvements in supply chains and labor markets. However, geopolitical uncertainties and tariff driven measures pose significant risks to a sustained global recovery.' Business Strategy Mr. Alghanim stated: 'Markaz has consistently focused on driving growth in its core business areas, which include asset management, investment banking, and real estate. The company has invested significantly in enhancing its digital platform through the launch of iMarkaz. This initiative has improved its competitive position by automating reporting and optimizing processes. By engaging leading digital service providers, Markaz has begun implementing front-end solutions to enhance clients' experience. Additionally, the company has introduced an innovative digital platform designed to simplify investment processes and improve accessibility for its clients. These efforts streamline operations, enhance client engagement, and provide greater transparency. By continuously adopting advanced fintech solutions, Markaz continues to meet the evolving demands of tech-savvy investors while ensuring the delivery of innovative and efficient services.' Mr. Alghanim mentioned: 'Environmental, social, and governance (ESG) principles have remained central to Markaz's operations. In 2024, the company expanded its ESG initiatives by allocating resources to sustainable assets and enhancing its corporate social responsibility programs. These initiatives demonstrate Markaz's commitment to fostering positive impacts within the communities it serves.' He added: 'Markaz continued to expand its product offerings to cater to evolving client needs. In 2024, Markaz launched the Private Credit Portfolio (for professional and qualified investors), diversifying its investment solutions to address the growing demand for alternative credit opportunities.' Outlook Mr. Alghanim stated: 'The economic outlook in the GCC remains positive. However, fluctuating oil prices may challenge fiscal planning but encourage regional economic diversification efforts. Sustained investments in infrastructure and technological advancements will strengthen the region's economic foundation, supporting its long-term growth and stability in 2025. Advanced economies are expected to maintain cautious monetary policies, implementing rate cuts later in the year to support economic growth. Notably, real estate markets in developed economies demonstrate resilience, supported by robust fundamentals. Despite anticipated volatility, these markets are expected to attract investors, given their capacity to deliver stable returns and hedge against inflation. Geopolitical tensions and supply chain realignments are anticipated to remain critical factors shaping global trade and investment. Moreover, we await the economic impact of policies proposed by the new administration in the United States, which may include tax reforms, fiscal incentives, and deregulation measures designed to stimulate growth and enhance competitiveness in key industries.' Mr. Alghanim commented: 'Markaz demonstrates adaptability and innovation across its core divisions. Asset Management addresses changing global interest rates by leveraging regional credit opportunities and expanding tailored products like the GCC Momentum Fund. The Investment Banking department is enhancing its capabilities in IPOs, mergers and acquisitions, advisory services, listings, and bond issuances. Additionally, Markaz is positioned in the real estate sector to capitalize on demographic and economic shifts in the GCC, ensuring ongoing value creation.' Strategic Initiatives Mr. Ali H. Khalil, Chief Executive Officer at Markaz, said: 'Recognizing that our clients' success is inseparable from our own, we continue reinforcing Markaz's reputation as a trusted partner in wealth creation and growth by aligning our solutions with their goals and aspirations. We prioritize enhancing client experiences, broadening our product offerings, and improving operational efficiency to strengthen market leadership. A significant milestone in 2024 was our expansion into new markets, including executing plans to increase our presence in the GCC region and Europe. Furthermore, we initiated direct investment activities to take advantage of opportunities within the GCC. We improved our distribution capabilities by launching a dedicated real estate reporting portal, introducing electronic fund top-ups, and expanding our client portal. We enhanced our digital systems with modular infrastructure, created an internal data warehouse for better decision-making, and developed an AI-powered assistant to improve efficiency and automate tasks which marks just the beginning of our planned AI use cases. Additionally, we identified a best-in-class system to further digitize client engagement.' He added: 'Markaz's wealth management services, designed for high-net-worth clients and family offices, facilitate the implementation of multi-generational endowments. Markaz established partnerships with leading global wealth and fund managers to broaden their product offerings to clients, including private debt, private equity investments, and infrastructure. In response to evolving market dynamics, Markaz introduced advanced investment solutions that meet the growing demand for innovative and diverse opportunities.' Mr. Khalil said: 'Our equities team successfully capitalized on the emerging opportunities, with our MIDAF and Forsa mutual funds outperforming their benchmarks. In investment banking, Markaz demonstrated expertise in debt and equity capital markets, whereby they have managed several issues for corporate clients. Markaz's contributions to capital restructuring and mergers and acquisitions underscored the company's role as a trusted advisor, highlighting its expertise in managing complex financial transactions.' He highlighted: 'Markaz has made significant progress in local and regional real estate initiatives by focusing on build-operate-transfer (BOT) opportunities and collaborating with family offices to establish regulated Real Estate Investment Trusts (REITs). In 2024, the company expanded its international real estate investment program by establishing new partnerships with prime developers in Europe and the United States and introducing additional product types, such as senior living and self-storage.' On his outlook for the regional and global markets, Mr. Khalil stated: 'With a solid foundation and the vision of its experienced leadership team, Markaz is well-positioned to navigate uncertainty and seize future growth opportunities. Looking ahead, Markaz remains focused on building a stronger foundation for the future, creating long-term value, adapting to market dynamics, and contributing to sustained growth and resilience in line with the economic development plans of the State of Kuwait.' About Kuwait Financial Centre 'Markaz' Established in 1974, Kuwait Financial Centre K.P.S.C 'Markaz' is one of the leading asset management and investment banking institutions in the MENA region with total assets under management of over KD 1.41 billion (USD 4.57 billion) as of 31 December 2024. Markaz was listed on the Boursa Kuwait in 1997. Over the years, Markaz has pioneered innovation by creating new investment channels. These channels enjoy unique characteristics and helped Markaz widen investors' horizons. Examples include Mumtaz (the first domestic mutual fund), MREF (the first real estate investment fund in Kuwait), Forsa Financial Fund (the first options market maker in the GCC since 2005), and the GCC Momentum Fund (the first passive fund of its kind in Kuwait and across GCC that follows the momentum methodology), all conceptualized, established and managed by Markaz. For further information, please contact: Sondos S. Saad Corporate Communications Department Kuwait Financial Centre K.P.S.C. "Markaz" Email: ssaad@
Al Bawaba
23-02-2025
- Business
- Al Bawaba
Markaz records Total Revenue of KD 20.31 million for 2024
Kuwait Financial Centre 'Markaz' (KSE: Markaz, Reuters: Bloomberg: MARKAZ: KK) reported its financial results for 2024 with a Total Revenue of KD 20.31 million with a decrease of 23%, as compared to KD 26.32 million in 2023. The net profit attributable to shareholders of Markaz was KD 4.46 million, compared to KD 4.15 million in the same period last year, and earnings per share was 9 Fils for the year ended 31 December 2024. The Board of Directors has recommended a dividend of 7 fils per share (Subject to the AGM approval). Mr. Diraar Yusuf Alghanim, Chairman at Markaz stated: In 2024, GCC economies showed resilience, with the MSCI GCC Countries Domestic Index up 5.9%. Kuwait outperformed with the All Share Index rising 8.0% and the Main 50 Index soaring 24%, driven by strong investor interest in mid-cap and small-cap stocks. Oil prices contributed to regional fiscal stability, while governments policies and investments have focused on economic diversification. The GCC average projected real GDP growth for 2024 is 1.4%, driven by economic diversification and infrastructure investments. The global economic environment in 2024 presented a blend of opportunities and challenges. Global GDP growth is projected at 3.2%, bolstered by easing inflation in developed economies. Emerging markets benefited from gradual improvements in supply chains and labor markets. However, geopolitical uncertainties and tariff-driven measures pose significant risks to sustained growth. Looking ahead, we are optimistic about the region's prospects and our capacity to capitalize on growth opportunities and deliver enduring value for our stakeholders.' Mr. Ali H. Khalil, Markaz's CEO, stated: 'Markaz's Asset Management fees for 2024 were KD 8.73 million as compared to KD 7.17 million for the previous year. Investment Banking and Advisory fees for 2024 were KD 1.08 million as compared to KD 0.84 million for 2023, an increase of 29%. The year 2024 held special significance as we celebrated our 50th anniversary, a testament to decades of sustained growth through innovation and trust. Understanding that our clients' success is tied to our own, we prioritize enhancing the client experience to reinforce our market leadership. Our equities team capitalized on these opportunities across multiple funds and portfolios; our equity mutual funds MIDAF and Forsa Funds outperformed the benchmarks. Markaz's real estate investments in the GCC region are characterized by operational efficiency, leading to optimal rental rates, high occupancy and collection ratios. These factors have significantly contributed to the income and returns of the Markaz Real Estate Fund (MREF) and the Markaz Gulf Real Estate Fund (MGREF), a private placement fund. Our international real estate portfolio has performed well despite expanding capitalization rates and higher-than-expected interest rates. We have successfully sold projects in Europe and the United States. Markaz is now focusing on high-potential opportunities under the current market conditions, including leveraged senior debt in multifamily and industrial development projects in the U.S. and Europe. The investment banking team demonstrated its innovative capabilities by successfully executing a KD 100 million bond program for the Commercial Bank of Kuwait and introducing the region's first KD-denominated convertible bond. Advisory services, including M&A, restructuring strategies, and feasibility studies, addressed complex financial structures for corporations and family-owned businesses. By focusing on creating long-term value, we aim to align our strategies with market dynamics and client needs, providing consistent growth and meaningful outcomes.' Mr. Abdullatif W. Al-Nusif, Managing Director, Wealth Management and Business Development at Markaz, stated: 'Markaz Assets Under Management (AUM) increased by 16 % to reach KD 1.41 billion as of December 31, 2024. Despite market complexities, our strategic role as investment advisors enabled us to seize market opportunities effectively, as exemplified in our continued ventures into Private Equity, Private Credit, and Local Fixed Income in secondary markets. We strengthened relationships with leading local and regional institutions while expanding our client base. All these efforts led to Markaz being recognized by reputable organizations including Global Finance, EMEA finance, Euromoney, and MENA Banking Excellence, and winning (9) prestigious awards in asset management, investment banking, real estate, digital solutions, and innovation. Our goal is to provide our clients with the best innovative investment solutions that achieve their financial objectives, and we are committed to delivering high-end value.'
Zawya
22-02-2025
- Business
- Zawya
Markaz records total revenue of KD 20.31mln for 2024
Kuwait - Kuwait Financial Centre 'Markaz' (KSE: Markaz, Reuters: Bloomberg: MARKAZ: KK) reported its financial results for 2024 with a Total Revenue of KD 20.31 million with a decrease of 23%, as compared to KD 26.32 million in 2023. The net profit attributable to shareholders of Markaz was KD 4.46 million, compared to KD 4.15 million in the same period last year, and earnings per share was 9 Fils for the year ended 31 December 2024. The Board of Directors has recommended a dividend of 7 fils per share (Subject to the AGM approval). Mr. Diraar Yusuf Alghanim, Chairman at Markaz stated: In 2024, GCC economies showed resilience, with the MSCI GCC Countries Domestic Index up 5.9%. Kuwait outperformed with the All Share Index rising 8.0% and the Main 50 Index soaring 24%, driven by strong investor interest in mid-cap and small-cap stocks. Oil prices contributed to regional fiscal stability, while governments policies and investments have focused on economic diversification. The GCC average projected real GDP growth for 2024 is 1.4%, driven by economic diversification and infrastructure investments. The global economic environment in 2024 presented a blend of opportunities and challenges. Global GDP growth is projected at 3.2%, bolstered by easing inflation in developed economies. Emerging markets benefited from gradual improvements in supply chains and labor markets. However, geopolitical uncertainties and tariff-driven measures pose significant risks to sustained growth. Looking ahead, we are optimistic about the region's prospects and our capacity to capitalize on growth opportunities and deliver enduring value for our stakeholders.' Mr. Ali H. Khalil, Markaz's CEO, stated: 'Markaz's Asset Management fees for 2024 were KD 8.73 million as compared to KD 7.17 million for the previous year. Investment Banking and Advisory fees for 2024 were KD 1.08 million as compared to KD 0.84 million for 2023, an increase of 29%. The year 2024 held special significance as we celebrated our 50th anniversary, a testament to decades of sustained growth through innovation and trust. Understanding that our clients' success is tied to our own, we prioritize enhancing the client experience to reinforce our market leadership. Our equities team capitalized on these opportunities across multiple funds and portfolios; our equity mutual funds MIDAF and Forsa Funds outperformed the benchmarks. Markaz's real estate investments in the GCC region are characterized by operational efficiency, leading to optimal rental rates, high occupancy and collection ratios. These factors have significantly contributed to the income and returns of the Markaz Real Estate Fund (MREF) and the Markaz Gulf Real Estate Fund (MGREF), a private placement fund. Our international real estate portfolio has performed well despite expanding capitalization rates and higher-than-expected interest rates. We have successfully sold projects in Europe and the United States. Markaz is now focusing on high-potential opportunities under the current market conditions, including leveraged senior debt in multifamily and industrial development projects in the U.S. and Europe. The investment banking team demonstrated its innovative capabilities by successfully executing a KD 100 million bond program for the Commercial Bank of Kuwait and introducing the region's first KD-denominated convertible bond. Advisory services, including M&A, restructuring strategies, and feasibility studies, addressed complex financial structures for corporations and family-owned businesses. By focusing on creating long-term value, we aim to align our strategies with market dynamics and client needs, providing consistent growth and meaningful outcomes.' Mr. Abdullatif W. Al-Nusif, Managing Director, Wealth Management and Business Development at Markaz, stated: 'Markaz Assets Under Management (AUM) increased by 16 % to reach KD 1.41 billion as of December 31, 2024. Despite market complexities, our strategic role as investment advisors enabled us to seize market opportunities effectively, as exemplified in our continued ventures into Private Equity, Private Credit, and Local Fixed Income in secondary markets. We strengthened relationships with leading local and regional institutions while expanding our client base. All these efforts led to Markaz being recognized by reputable organizations including Global Finance, EMEA finance, Euromoney, and MENA Banking Excellence, and winning (9) prestigious awards in asset management, investment banking, real estate, digital solutions, and innovation. Our goal is to provide our clients with the best innovative investment solutions that achieve their financial objectives, and we are committed to delivering high-end value.' About Kuwait Financial Centre 'Markaz' Established in 1974, Kuwait Financial Centre K.P.S.C 'Markaz' is one of the leading asset management and investment banking institutions in the MENA region with total assets under management of over KD 1.41 billion (USD 4.57 billion) as of 31 December 2024. Markaz was listed on the Boursa Kuwait in 1997. Over the years, Markaz has pioneered innovation through the creation of new investment channels. These channels enjoy unique characteristics and helped Markaz widen investors' horizons. Examples include Mumtaz (the first domestic mutual fund), MREF (the first real estate investment fund in Kuwait), Forsa Financial Fund (the first options market maker in the GCC since 2005), and the GCC Momentum Fund (the first passive fund of its kind in Kuwait and across GCC that follows the momentum methodology), all conceptualized, established, and managed by Markaz. For further information, please contact: Sondos Saad Corporate Communications Department Kuwait Financial Centre K.P.S.C. "Markaz" Email: Ssaad@
