# KIPCO

Kuwait Projects Company (Holding), known as KIPCO, is an investment holding company in the Middle East and North Africa (MENA) region. KIPCO, with consolidated assets of $40.1 billion as of 31 December 2023, operates in 20+ countries across multiple industries. KIPCO is a multi-sector operator with portfolio companies in commercial banking, petrochemical & oil services, foodstuff, asset management & investment banking, media, real estate, healthcare, logistics, and education.

## History

KIPCO was incorporated on 2 August 1975 under Article 94 of the Kuwaiti Commercial Companies Code, Law No. 15 1960. Since incorporation, the company has grown and made investments in a diversified portfolio of companies operating throughout the Gulf Cooperation Council (GCC ) and the wider Middle East and North Africa (MENA) region.

### Milestones

| 1988 | Acquisition of United Gulf Bank (UGB) |
| 1995 | Acquisition of stake in United Real Estate Company (URC) |
| 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 |
| 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 |
| 1999 | Acquisition of stake in Wataniya Telecom |
| 2006 | Establishment of US$2 billion EMTN programme |
| 2007 | Sale of Wataniya Telecom |
| 2009 | Merger of Showtime and Orbit to create OSN |
| 2009 | Completion of a 7-year US$500 million bond issue under EMTN programme |
| 2010 | Completion of a 7-year US$500 million bond issue under EMTN programme |
| 2010 | Sale of 39.2% stake in GIC to Fairfax |
| 2010 | KIPCO acquires 34% direct stake in URC by subscribing to rights issue in Dec’10 |
| 2010 | Acquisition of 40.3% stake in UIC, 28.4% during rights issue and 11.9% from KAMCO in Sep’10 |
| 2012 | Burgan bank acquires 99.3% in Eurobank Tekfen (rebranded as Burgan Bank – Turkey) |
| 2013 | OSN acquires 100% stake in Pehla (region's largest provider of South Asian pay TV content) |
| 2013 | Burgan Bank & UGB jointly acquired ~49% stake in Fimbank, Malta |
| 2013 | UIC purchases additional 10.8% stake in Qurain Petrochemical Industries Company(QPIC) |
| 2013 | UIC divests 29% stake in SADAFCO for KD66 mn |
| 2014 | Completion of a 5-year US$500 million bond issue under EMTN programme |
| 2014 | UIC divests remaining 11% stake in SADAFCO for KD25mn |
| 2014 | Burgan Bank completed the issuance of US$500mn perpetual bond |
| 2014 | Burgan Bank successfully raised capital worth KD102.6 million through a rights issue |
| 2015 | OSN secures second Syndicated Financing Facility for US$400 million |
| 2015 | KIPCO through its subsidiary acquired 51.2% stake in Jordan Kuwait Bank from Burgan Bank |
| 2016 | KIPCO repays KD 80 million bond |
| 2016 | Completion of a 7-year US$500 million bond issue under EMTN programme |
| 2016 | Burgan Bank completed the issuance of a KWD 100 million Tier 2 Capital issuance |
| 2016 | GIG acquires 90% stake in Turkish non-life insurer |
| 2016 | Burgan Bank successfully completed issuance of 5 year, US$500mn bond under its Medium term notes programme |
| 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 |
| 2017 | URC announces 40% acquisition in Insha'a Holding. |
| 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. |
| 2017 | Completed first ever seven-year corporate dinar bond issue of KD 100 million maturing in December 2024 |
| 2018 | Completed a five-year KD 100 million corporate dinar bond issue maturing in November 2023 |
| 2019 | Announced a rights issue of 453 million fully underwritten shares |
| 2019 | Repaid US$500 million bond issued under EMTN program matured in February 2019 |
| 2019 | KIPCO Completed its rights issue & raised KD 95.08 million in equity |
| 2021 | KIPCO Completed its rights issue of 640 million shares (offer was oversubscribed), and KIPCO raised KD 80 million in equity |
| 2022 | In Nov 2022, successfully merged Qurain Petrochemical Industries Company K.S.C.P. (QPIC) into KIPCO Largest KD-denominated bond issuance of KD165mn ($538mn); bought back US$343mn of existing bonds due in 2023 & 2024 |
| 2023 | Completed the sale of its stake in GIG to Fairfax for US$860 million in December 2023. The KIPCO Group realized a profit of ~KD73 million on the sale |
| 2024 | In April 2024, announced the completion of OSN+ and Anghami (NASDAQ: ANGH) transaction |

## Corporate governance

KIPCO launched its annual Shafafiyah (transparency) investors’ forum in 2004 as a way of supporting transparency. The forum is highlighted by KIPCO and its Group companies shedding light on its ethical and responsible decision making methods for the year.

### Board of Directors

| Name | Position |
| Sheikh Hamad Sabah Al Ahmad Al Sabah | Chairman |
| Sheikh Abdullah Naser Sabah Al Ahmad Al Sabah | Vice Chairman |
| Sheikha Dana Naser Sabah Al Ahmad Al Sabah | Executive Board Member |
| Abdullah Yacoub Bishara | Independent Board Member |
| Faisal Hamad Al Ayyar | Non-Executive Board Member |

### Executive management

| Name | Position |
| Sheikha Dana Naser Sabah Al Ahmad Al Sabah | Group Chief Executive Officer |
| Samer Khanachet | Deputy Group Chief Executive Officer |
| Sunny Bhatia | Group Chief Financial Officer |
| Sheikh Sabah Mohammad Abdulaziz Al Sabah | Group Chief Strategic Projects Officer |
| Khaled Abdul Jabbar Al Sharrad | Group Chief HR & Admin Officer, Board Secretary |
| Moustapha Samir Chami | Deputy Group Chief Financial Officer |
| Mohammad Abdullah Al Hubail | Deputy Group Chief of HR & Admin Officer |
| Ghada Khalaf | Group Senior Vice President – Investments |
| Samer Abbouchi | Group Senior Vice President – Investments |
| Adel Jassem Al Waqayan | Group Treasurer |
| Eman Mohammad Al Awadhi | Group Senior Vice President – Corporate Communications & Investor Relations |
| Riyad Mohammed Hanbali | Group Vice President – Internal Audit |

## Shareholding structure

KIPCO's principal shareholder is Al Futtooh Holding Company (AFH), a Kuwaiti holding company owned by members of the Kuwaiti ruling family. Post merger, AFH continues to be the largest shareholder with 31.91% ownership.
The following table sets out the percentage holdings of the company's major shareholders:
| | Percentage holding | Published on |
| Al Futtooh Holding Company K.S.C. (Closed) | 31.91 | 27 November 2022 |
| United American Holding Co.& Group (Al Janah Holding Co.) | 19.77 | 16 September 2024 |
| United Industries Co. & Group (Kuwait National Industrial Projects Co.) | 6.25 | 30 November 2022 |

## Group structure

The principal subsidiaries and associates of KIPCO are in commercial banking, petrochemical & oil services, foodstuff, asset management & investment banking, media, real estate, healthcare, logistics and education sector.
The table below sets out the KIPCO's controlling or significant stakes in key portfolio companies*:
| | Commercial Banking | Petrochemical | Foodstuff | AMIB | AMIB | Media | Real Estate | Oil Services/ Logistics | Oil Services/ Logistics |
| | Burgan Bank | Equate | SADAFCO | UGH | KAMCO Invest | OSN | United Real Estate Company | NAPESCO | JTC |
| KIPCO Group effective stake | 62% | 6% | 41% | 91% | 56% | 70% | 63% | 60% | 47% |
∗ Effective stakes as of 31 March 2024

## Principal companies/ key subs and associates

* Burgan Bank: Burgan Bank is a public shareholding company incorporated in Kuwait by Amiri decree dated 27 December 1975. Its shares are listed on the Boursa Kuwait Premier Market and it is regulated by the Central Bank of Kuwait. As of 30 June 2024, Burgan Bank is the second largest conventional commercial bank by assets US$24.9bn and is considered one of the country's most diverse banking groups.
* Equate: Equate is a petrochemical company headquartered in Kuwait with operations in 11 countries through its subsidiaries. It's product portfolio includes Equate includes Ethylene Glycol (EG), Polyethylene (PE), and Polyethylene Terephthalate (PET). Equate is a second largest producer of Ethylene Glycol in the world with production facilities in Kuwait, the US, Canada, Netherlands, etc. It has a strong credit profile with S&P rating of BBB and Moody's rating of Baa2.
* Saudia Dairy and Foodstuff Company (SADAFCO): SADAFCO is a leading food and beverage company based in Saudi Arabia, with operations in the Middle East and Europe. It is a market leader in KSA's Plain UHT milk, tomato paste, and ice cream, with its core products marketed under the flagship Saudia brand. SADAFCO has strong regional retail network of over 38,000 outlets across the Arabian peninsula. It is listed on Saudi Arabian stock exchange with market capitalization of approximately US$3.1bn.
* United Gulf Holding Company (UGH): UGH is a Bahrain-based financial services group listed on the Bahrain Stock Exchange. Its activities include asset management, corporate finance advisory and brokerage services. With asset base of US$2.8bn as at 30 June 2024, UGB has a track record of incubating and growing businesses.
* KAMCO Invest: Kamco Invest operates in key regional capital markets and is one of the largest investment companies in the GCC in terms of assets under management ("AuM"). KAMCO Invest provides a comprehensive range of investment products and services in asset management, investment banking, and brokerage.
* OSN: OSN is a general entertainment platform in MENA, operating across multiple platforms:
** Over-the-top streaming (OTT) - Owns 55.45% of Anghami
** Direct-to-home (DTH), Cable fiber & Internet Protocol television (IPTV)
** Business - Large commercial setups & hotels
* United Real Estate Company (URC): URC is one of the leading real estate developers and investors in Kuwait and the MENA region. URC's core business is real estate development and operations, and it has a diversified portfolio of assets that include commercial centers, hotels, residential properties, and high-rise office buildings and mixed use developments. URC's operations also include construction and contracting services, facilities management, and project management which are primarily conducted through subsidiaries. It is listed on Boursa Kuwait with market cap of approximately US$ 201mn.
* National Petroleum Services Company (NAPESCO): NAPESCO was founded in 1993 as a private company offering pumping services to the Kuwait energy sector. It is now a leading provider of upstream oilfield services including cementing, stimulation, coiled tubing, hydraulic fracturing, nitrogen, and downhole service tools. NAPESCO's shares are listed on Boursa Kuwait Main Market with market cap of approximately US$ 254mn.
* Jassim Transport & Stevedoring Company (JTC): JTC is a Kuwaiti-based inland transportation company with operations in Kuwait, Qatar, and Saudi Arabia. It has four core activities that include ports management, contract logistics, equipment leasing, and power rental. Listed on Boursa Kuwait with a market cap of approximately US$ 182mn.
* Others: The major entities engaged in other businesses are United Education Company, Advanced Technology Company, and United Networks Company etc. which are engaged in the business of education, healthcare, and satellite communication.

## Business strategy

The key elements of the group's strategy are to:
* Maximize value from businesses with a medium to long-term horizon.
* Seek to generate sustainable, predictable operating cash flows and ROE over the business cycle.
* Selective disposal opportunistic after multi-dimensional and holistic analysis.
* Controlling or significant stakes in operating businesses in growth markets.
* Partner with global or local businesses with a proven track record.

## Regional presence

The group and its associates have a presence in the following countries in the MENA region:
| Company | Present in |
| Burgan Bank | Kuwait, Algeria, Tunisia, Türkiye, and UAE (representative office in the Dubai International Financial Centre). |
| Jordan Kuwait Bank | Jordan, Cyprus, Iraq, and Lebanon (branch of Bank of Baghdad) |
| UGH | Bahrain, Kuwait, Tunisia, Morocco, Malta, Jordan, Saudi Arabia, UAE, UK, India, and Egypt. |
| Panther Media Group Ltd (PMG) | Content rights in 22 countries in the MENA region; however, it currently focuses on seven core markets, being the UAE, Saudi Arabia, Kuwait, Qatar, Egypt, Bahrain and Jordan. |
| Equate Group and TKOC | Kuwait, the US, Canada, Mexico, Netherlands, Brazil, Singapore, Italy, China, Germany, and the UAE. |
| KARO | Kuwait |
| NAPESCO | Kuwait |
| SADAFCO | Saudi Arabia, Bahrain, Kuwait, Qatar, Jordan, and Poland. |
| JTC | Kuwait, Qatar, Saudi Arabia |
| ATC | Kuwait |
| United Real Estate Company | Kuwait, Jordan, Egypt, Oman, UK, Morocco and Lebanon |

## Credit ratings

| KIPCO | Moody's | Fitch Ratings |
| Short Term | NP | - |
| Long Term | Ba3 | BB- |
| Outlook | Negative | Stable |

## Sustainable Growth & Impact

With a commitment to transparent governance, KIPCO integrates Environmental, Social, and Governance (ESG) principles into its operations. This dedication has earned KIPCO recognition with four prestigious awards from Forbes, affirming its commitment to sustainability and responsible practices. These efforts include the development of a comprehensive ESG Framework and an ESG Committee to ensure alignment with objectives. Additionally, KIPCO prioritizes transparent communication, engaging with internal and external stakeholders through regular dialogue and recognition programs to foster positive multilateral impacts.

### Environmental Initiatives

KIPCO has aligned its environmental efforts with Kuwait's Vision 2035, focusing on resource management and climate action. The company collaborates with NGOs, industry bodies, and government entities to promote sustainability initiatives across Kuwait. Although KIPCO’s carbon footprint is minimal, primarily stemming from office-based operations, KIPCO aims to further reduce greenhouse gas emissions through initiatives such as Digital Document Management, which enhances environmental responsibility while improving financial efficiency. Additionally, KIPCO’s strategic IT investments have led to significant cost savings and environmental benefits.
The company transparently reports its greenhouse gas emissions, covering Scope 1, 2, and 3 emissions. In 2023, KIPCO reported Scope 1 emissions of 8.17 tCO2e, Scope 2 emissions of 1,575.00 tCO2e, and Scope 3 emissions of 162.2 tCO2e, reflecting its ongoing commitment to reducing environmental impact.

### Social Responsibility

KIPCO engages with the Kuwaiti community through a variety of initiatives designed to foster collaboration, empowerment, and social support. The company sponsors entrepreneurship platforms, collaborates with local organizations, and participates in conferences. From 2022 to 2023, KIPCO increased its investment in community initiatives by 380%, spending KD 635,145. This rise in community support highlights KIPCO’s commitment to corporate social responsibility. Employees also actively participate in volunteer work, and the company contributes financially to charitable causes.
KIPCO is also dedicated to investing in its workforce. In 2023, the company spent KD 119,500 on employee training and engagement activities, a 75% increase from the previous year. KIPCO has maintained a Kuwaitization rate of 28%, with 41% of managerial roles held by Kuwaiti nationals. The company promotes gender diversity, with women representing 38% of its workforce and initiatives in place to increase female leadership.

### Governance Practices

KIPCO’s corporate governance framework is foundational to its operations, emphasizing transparency, accountability, and sustainability. The company’s Board of Directors includes 20% female representation, and its executive leadership reflects a commitment to diversity, with 23% of executive managers being women and 46% of leadership roles held by Kuwaiti nationals.
In its procurement practices, KIPCO prioritizes local suppliers, with 68% of suppliers being local. In 2023, the company directed 77% of its procurement expenditure—KD 1,309,114—toward local suppliers, significantly exceeding foreign supplier spending. KIPCO maintains strict adherence to compliance regulations, reporting zero instances of non-compliance or corruption incidents in 2023.
Additionally, KIPCO’s IT Department has implemented several system and data security upgrades, resulting in zero data loss incidents during the year. The company’s total IT expenditure in 2023 was KD 129,295, reflecting its focus on technological resilience and security.

## Corporate social responsibility
### KIPCO Sponsors 10th Youth Empowerment Symposium

KIPCO Holding served as the Strategic Sponsor of the 10th Youth Empowerment Symposium (Tmkeen), marking the 10th anniversary since the event’s launch. Over the decade, the symposium hosted more than 30 international leaders, 95 local leaders and 300 growing entrepreneurs. This is a testament to KIPCO’s longstanding commitment to promote entrepreneurship and empowering young leaders. The initiative aimed to provide a platform for youth to exchange ideas, learn from industry experts, and explore opportunities for entrepreneurship.

### KIPCO partners with LOYAC to offer training opportunities for teens

KIPCO’s partnership with LOYAC, a local non-profit organization that aims to empower youth to become impactful leaders in society. Through this partnership, KIPCO will be sponsoring the ‘7 Habits for Highly Effective Teens’ program sessions that will be offered to youth aged 12 to 18 throughout the year. The ‘7 Habits’ is a Franklin Covey Education program. The goals of this life empowerment program include increasing self confidence and self-esteem, being responsible, defining one’s values, recognizing and prioritizing goals and resisting peer pressure.

### KIPCO Group inaugurates The Late Salwa Sabah Al Ahmad Al Sabah Stem Cell and Umbilical Cord Center

Under the auspices of the Minister of Health, HE Sheikh Dr Basel Humoud Al Sabah, KIPCO – the Kuwait Projects Company (Holding) – inaugurated the Late Sheikha Salwa Sabah Al Ahmad Al Sabah Stem Cell and Umbilical Cord Center. The center was built with a donation of KD 7 million made by Masharee Al Khair Charity Organization on behalf of KIPCO Group. This is the first center in the Gulf region to be dedicated to stem cell research and the storage of umbilical cords.

### 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.

### 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. In 2008 KIPCO won an award for the campaign on dyslexia at Kuwait's first Corporate Social Responsibility (CSR) Awards.