Kuwait 1 Kuwait n About Kuwait n Total

Kuwait 1

Kuwait n About Kuwait: n Total population: 3. 4 M (1/3 nationals) n Free democratic system n Independent Juridical system n Modern Infrastructure. 2

Kuwait n Oil reservoirs 9% of the international oil resources. n Member of WTO. n New tax law. n Foreign investor law. 3

Kuwait n Economy -overview: Kuwait is a small, rich, relatively open economy with selfreported crude oil reserves of about 104 billion barrels - 9% of world reserves. Petroleum accounts for nearly half of GDP, 95% of export revenues, and 80% of government income. High oil prices in recent years have helped build Kuwait's budget and trade surpluses and foreign reserves. As a result of this positive fiscal situation, the need for economic reforms is less urgent and the government has not earnestly pushed through new initiatives. Despite its vast oil reserves. In May 2007 Kuwait changed its currency peg from the US dollar to a basket of currencies in order to curb inflation and to reduce its vulnerability to external shocks. 4

Kuwait n Major Economic Indicators (2008): n Total GDP (at current prices) $ 113 BN. n Income per capita $ 37, 000. n GDP growth at current prices 14. 1%. n Real GDP growth 3. 8%. n Inflation 7. 5%. n Unemployment 1. 8%. n Sources: CBK Report 5

Kuwait n Summary of Export: (BN KD) n n Sources: CBK Report KD = 3. 4 $ 6

Kuwait n Budget 2007 – 2008: q q q n Total revenue $ 69 BN – Oil represents $ 65 BN. Total expenditure $ 27 BN. Surplus $ 42 BN. Sources: CBK Report 7

Kuwait n Banking and Financial Sectors (2007): (million KD) # n n Sectors Total Balance Sheet Private sector deposits Numbers 1 Banking: 35, 555 20, 404 9 2 Investment companies: 16, 041 -- 87 Total: 54, 129 20, 404 96 Sources: CBK Report KD = 3. 4 $ 8

KSE n Kuwait Stock Exchange (KSE): n The Kuwait Stock Exchange enjoys an independent judicial personality with the right of litigation in a mode facilitating the performance of its functions for the purpose of realizing the objectives of its organization in the best manner within the scope of regulations and laws governing the Stock Exchange operations. n The Stock Exchange within its activity act to direct and rationalize dealing in stocks and securities, within the scope of its powers in order to develop and stabilize dealing in securities in a manner securing safe, easy and accurate transactions so as to avoid any confusion in dealings. n Sources: KSE 9

KSE n Market capitalization (2008): KD 59. 6 BN n Daily average trading (2008): about 10, 000 Deals n Brokerage fees (2008): %0. 125 up to 50, 000 KD, than %0. 1 will charge. n Number of listed companies (2008): 209 n Sources: KSE 10

KSE n Sources: KSE Annual Report 2007 11

KSE n n Securities Market, Volume and Number of Deals of Traded Shares: (Official Market) Sources: KSE Annual Report 2007 12

KSE n n Securities Market, Volume and Number of Traded Shares: (Official Market) Sources: KSE Annual Report 2007 13

KSE n n Securities Market, Current Shares Price Index: Sources: KSE Annual Report 2007 14

KCC n Kuwait Clearing Company (KCC) Role: n Provide reliable clearing, settlement, central depository and shares registration. n Settlement and clearing trading for options, future contracts, bonds and other derivatives. 15

KCC n Paying dividends to shareholders of listed companies. n IPO’s underwriting. n Develop e-trade, e-settlement and SWIFT in the stock market. 16

KCC n Kuwait Clearing Company chart: Board of Directors Internal Audit Unit General Manager Legal Unit Head Custody & Share Registrar Head Fund Trustee AGM Information Technology AGM Support AGM Operations Head Clearing & Settlement/ IPO Customer Relations Unit Head Derivatives Head HR/Admin Head Finance Head Treasury Head Settlement & Reconciliation Manager Database Administrator Manager New Projects Manager Business Planning & Development 17

KCC n Date of inception: 1982 n Equity Shareholders: (December 2007) q q q Capital Paid: Capital Premium: Reserves: 4, 500, 000 KD 5, 625, 000 KD 9, 000 KD 18

KCC n Shareholders: 19

KCC n Number of employees: 146 n Number of funds and trustees: 40 n Number of companies in registrar: 226 20

Thanks 21