KUWAIT CITY, Aug 16, (Agencies): Kuwait Financial Centre “Markaz” [KSE: Markaz, Reuters: MARKZ.KW, Bloomberg: MARKAZ: KK] announced the results of the first half of 2012, Markaz posted a Net Profit of KD 1.2 million and a 2 fils EPS in H1 2012, compared to a profit of KD 750 thousand and a 2 fils EPS during the same period of 2011. Total Equity grew by 23% compared to the same period of 2011 and accounted to KD 155.39 million.
Diraar Alghanim, Chairman & Managing Director of Markaz said: “Despite the ongoing global financial crisis, which commenced in 2008, Markaz successfully honored all of its financial commitments without any delays, resulting from the prudent and conservative financial management approach Markaz implements.

Markaz management continues to strive for excellence in good governance and responsible management practice, benchmarking those of the best global companies. Our financial management approach coupled with our effective corporate governance has enabled Markaz to maintain a “BBB” credit rating from Capital Intelligence Ltd.”
Alghanim also added, “Markaz follows a dynamic investment strategy which enables the firm to identify eligible investment opportunities. Of these opportunities, advising local companies on restructuring and recapitalization, as well as the increased demand for Kuwaiti distressed debt by regional and international investors, have been on the rise. Markaz is constantly on the pursuit of new investment opportunities — which are made after thorough due diligence and risk assessment — spanning across different sectors and industries.”

Manaf Alhajeri, Chief Executive Officer of Markaz said: “Local and regional markets are continuously becoming unstable and highly volatile. As a result of the instability and volatility, the current situation requires market participants to be highly flexible and quick to react towards changes. Therefore, it is essential for companies to provide up-to-date investment solutions, to keep up with the developments in the market place, as well as maneuver between different asset classes meeting the investors’ requirements.”
Alhajeri also added: “Liquidity management will enable Markaz to benefit from investment opportunities in various fields with good returns and low risk. Lately the interest for income generating investments has increased in Kuwait and the GCC. Therefore, Markaz intends to expand on this class of investment in addition to the Company’s current promising investments.”

Trading activity in local Kuwait market remained weak. Possible factors are the increasing volatility on the political front slowing down the Economic development and also affecting the investor confidence. Kuwait’s banking sector continues to remain vulnerable resulting from its exposure to investment companies and also lack of lending opportunities which has kept growth in credit to private sector sluggish.
The department’s AUM as of June stood close to $2.1 billion of which 44% was of discretionary managed Funds & Portfolios.
After a robust start to the year in the first quarter, markets performed otherwise in the second quarter as fears of another Euro Zone recession, sent international indices down for the quarter. Markets were unnerved by the political crisis in Greece and Spain fearing a systemic risk. After long-lasting debates, European Union leaders reached agreements that they hope will restore market confidence in the debt of Eurozone members.
Markaz Private Equity Portfolio realized a year-to-date return of 4.65%.

Investment Banking
We continue to witness a growing interest in distressed debt of Kuwaiti issuers by regional and international investors; and we have executed several trades in this space, allowing Markaz to become a market maker for such debt.
Consistent with the market environment, we continue to build strong capabilities in distressed debt transactions, restructuring advisory services (either representing creditors or corporations), liquidating non-core assets for our clients, and raising fresh capital [debt and/or equity] for local corporations. We currently have five assignments in the various activities described above and are actively working on creating value for our clients.

Fixed Income
Markaz Fixed Income Fund (MFIF), recorded a YTD return of 1.34% for the Q2 2012 and an absolute return of 3.30% since the fund was launched last year. Markaz acted as a Joint Lead Manager for the KWD26.5 million bonds issued by Al-ARGAN International Real Estate Company K.S.C.C. with Burgan Bank and KAMCO.
Structured Finance
Markaz has been the sole options market maker in the Middle East since 2005. The company continues to develop and stimulate options market as it has many benefits to traders in the Kuwaiti market, especially the derivatives market.

MENA Real Estate
Markaz Real Estate Opportunities Fund is managing its investments in Lebanon, KSA, Jordan, Syria and Abu Dhabi. Jordan residential development has been completed and final exit process is underway; the fund exited in June its investment in KSA with a 32% ROI.
Markaz Real Estate Fund reached its maximum capital allowed of KD 50m (par value) in March 2012 at that point we were able to secure CMA approval to increase the maximum capital of the fund to KD 100m (at par value). In addition, the fund received the approval from over 75% its investors and the CMA to extend its term for a new 10 years starting from June 2012. MREF received additional subscriptions totaling KD 15.9 m in H1 2012 and deployed KD 9.5 m in acquisition of new properties. On the financial side, the fund continued to make steady monthly cash distributions to investors generating a return of 4.82% for the period inclusive of improvement in property valuations.
Aradi Development investment: We are focusing our efforts towards the exit of the second of the two investments (Al Bandariah) in KSA Eastern province after completion and exit of the first investment (Al Nimr) during 2010.

KSA Residential investment: Markaz is proceeding with the development of 54 residential villas in Al Khobar KSA. Markaz team initiated the marketing and sales campaign in time with the completion of the mock-up and first four units in November 2011. Up to end of H1 2012 we have sold 10 villas and expect to complete the sale of the developed villas by the end of 2012. The development targets local Saudi mid-level employees who constitute the segment of population with the largest pent-up demand and aims to generate gross returns in the tune of 20%.
Kuwait Development: Markaz acquired, as a proprietary investment, two adjacent old buildings in Salmiya Kuwait and is in the process of vacating, demolishing and redeveloping the merged property into a residential complex for renting residential apartments to expatriates.
International Real Estate
In order to capitalize on the prevalent distress in the real estate debt markets, we continue to grow our U.S. distressed debt activity, seeking to invest in non-performing and sub-performing commercial mortgages in the U.S. During the second quarter we resolved one of our distressed debt investments with the borrower and we also sold one of the properties that we had previously foreclosed on; the average return on investment multiple is 1.14 times for the two assets.
Oil and Gas
The Oil & Gas Department manages the Markaz Energy Fund (MEF) which invests in a diversified portfolio within the oil & gas sector. Oil prices and lower demand for petrochemicals has adversely impacted our investments in the sector, and was offset by the improvement in performance of our direct investments.


Markaz Real Estate Fund (MAREF) obtained the approval of the Capital Market Authority on its interim financial statements for the H1 period ending June 30, 2012, dated Aug 15, 2012.
MAREF reported a profit of KD 715,814 for the three months ending June 30, 2012 as compared to a profit of KD 445,453 earned during the same period ending 2011.
Particulars (6 months ending) June 30, 2012 June 30, 2011
Profit (KD) 3,093,654 1,617,692
Earnings per share (fils) 65.59 51.69
Total current assets 18,267,238 12,173,989
Total assets 76,271,492 51,315,591
Total current liabilities 5,804,917 4,917,038
Total liabilities 5,804,917 4,917,038
Total shareholders’ equity 70,466,575 46,398,553
Total expenses from transactions with parties amounts to KD 271,882.


Commercial Facilities Company (CFC) obtained the approval of the Capital Market Authority on its interim financial statements for the H1 period ending June 30, 2012, dated Aug 15, 2012.
CFC reported a profit of KD 4,911,000 for the three months ending June 30, 2012 as compared to a profit of KD 2.495.000 during the same period ending 2011.
Particulars (6 months ending) June 30, 2012 June 30, 2011
Profit (KD) 9,505,000 5.829.000
Earnings per share (fils) 18 11
Total current assets 146,757,000 138,668,000
Total assets 279,216,000 271,150,000
Total current liabilities 44,590,000 66,430,000
Total liabilities 116,462,000 115,496,000
Total shareholders’ equity 162,754,000 155,654,000


Capital Market Authority approved the interim financial statements of Noor Financial Investment Company (Noor) for the first half period ending June 30, 2012, dated Aug 15, 2012.
Noor reported a loss of KD 1,081,071 for the three months ending June 30, 2012 as compared to a profit of KD 226,037 during the same period ending 2011.
Particulars (6 months ending) June 30, 2012 June 30, 2011
Profit (KD) 1,462,757 (4,899,448)
Earnings per share (fils) 4 (13)
Total current assets 88,827,289 96,522,646
Total assets 222,646,047 255,698,055
Total current liabilities 58,812,983 164,017,754
Total liabilities 164,261,130 165,469,789
Total shareholders’ equity 32,187,010 43,691,596
The total revenue from transactions with related parties is worth KD 303,100.
Total expenses from transactions with parties amounts to KD 53,084.


Coast Investment & Development Company (Coast) obtained the approval of the Capital Market Authority on its interim financial statements for the H1 period ending June 30, 2012, dated Aug 15, 2012.
Coast reported a loss of KD 2,795,235 for the three months ending June 30, 2012 as compared to a loss of KD 3,368,960 incurred during the same period ending 2011.
Particulars (6 months ending) June 30, 2012 June 30, 2011
Profit (KD) (5,576,117) (8,524,400)
Earnings per share (fils) (10) (15)
Total current assets 73,271,968 40,005,375
Total assets 240,257,908 123,281,774
Total current liabilities 87,985,241 49,818,936
Total liabilities 139,144,831 75,200,066
Total shareholders’ equity 47,496,663 48,081,707
The total revenue from transactions with related parties is worth KD 214,150.
Total expenses from transactions with parties amounts to KD 411,704.


Gulf Investment House (GIH) obtained the approval of the Capital Market Authority on its interim financial statements for the H1 period ending June 30, 2012, dated Aug 15, 2012.
GIH reported a profit of KD 72,155 for the three months ending June 30, 2012 as compared to a loss of KD 848,145 incurred during the same period ending 2011.
Particulars (6 months ending) June 30, 2012 June 30, 2011
Profit (KD) 171,826 (1,632,719)
Earnings per share (fils) 0.41 (3.87)
Total current assets 12,547,800 14,295,256
Total assets 67,437,610 74,445,487
Total current liabilities 1,163,471 2,109,110
Total liabilities 48,599,645 51,740,924
Total shareholders’ equity 18,837,965 22,704,563
Total expenses from transactions with parties amounts to KD 1,191,240.


Al-Safwa Group Holding Company (Al-Safwa) reported that the Board of Directors met on Aug 15, 2012 and approved the interim financial statements for the H1 period ending June 30, 2012.
For the three months ending June 30, 2012, the company announced a loss of KD 18,552,320 as compared to a loss of KD 2,305,775 for the same period ending 2011.
Particulars (6 months ending) June 30, 2012 June 30, 2011
Profit (KD) (18,281,500) (5,992,599)
Earnings per share (fils) (14.08) (4.61)
Total current assets 62,950,421 65,734,899
Total assets 157,015,495 168,426,699
Total current liabilities 98,413,553 61,812,601
Total liabilities 102,788,783 102,884,266
Total shareholders’ equity 17,303,953 28,743,538
Total expenses from transactions with parties amounts to KD 249,491.


Capital Market Authority approved the interim financial statements of Amar Finance and Leasing Company (Amar) for the first half period ending June 30, 2012, dated Aug 15, 2012.
Amar reported a profit of KD 70,234 for the three months ending June 30, 2012 as compared to a profit of KD 66,067 during the same period ending 2011.
Particulars (6 months ending) June 30, 2012 June 30, 2011
Profit (KD) (26,946) (582,245)
Earnings per share (fils) (0.1) (3)
Total current assets 10,773,551 6,895,298
Total assets 26,351,423 27,740,710
Total current liabilities 3,146,643 4,850,802
Total liabilities 5,249,195 7,183,121
Total shareholders’ equity 21,102,228 20,557,589
The total revenue from transactions with related parties is worth KD 49,238.


Board of Directors of Pearl of Kuwait Real Estate Company (Pearl) met on Aug 15, 2012 and approved the interim financial statements for the first half period ending June 30, 2012.
Pearl reported a profit of KD 758,050 for the three months ending June 30, 2012 as compared to a loss of KD 236,261 incurred during the same period ending 2011.
Particulars (6 months ending) June 30, 2012 June 30, 2011
Profit (KD) 492,420 (1,399,830)
Earnings per share (fils) 4.90 (13.93)
Total current assets 14,435,265 14,803,391
Total assets 46,828,306 49,885,173
Total current liabilities 25,100,418 24,704,255
Total liabilities 42,339,233 40,903,379
Total shareholders’ equity 3,633,523 7,045,670


Kuwait Bahrain International Exchange Company (KBI) received approval from Central Bank of Kuwait on its interim financial statements for the first half period ending June 30, 2012, dated Aug 15, 2012.
The company reported a profit of KD 169,286 for the three months ending June 30, 2012 as compared to a profit of KD 205,460 earned during the same period ending 2011.
Particulars (6 months ending) June 30, 2012 June 30, 2011
Profit (KD) 348,745 225,518
Earnings per share (fils) 7.55 4.88
Total current assets 8,091,588 8,141,692
Total assets 8,091,588 8,141,692
Total current liabilities 2,182,589 2,432,403
Total liabilities 2,182,589 2,432,403
Total shareholders’ equity 5,908,999 5,709,289


Board of Directors of Salbookh Trading Company (Salbookh) met on Aug 15, 2012 and approved the interim financial statements for the first half period ending July 31, 2012.
Salbookh reported a loss of KD 172,799 for the three months ending June 30, 2012 as compared to a loss of KD 111,353 during the same period ending 2011.
Particulars (6 months ending) July 31, 2012 July 31, 2011
Profit (KD) (329,110) (863,072)
Earnings per share (fils) (3.24) (8.5)
Total current assets 8,188,462 9,767,013
Total assets 14,954,250 20,148,280
Total current liabilities 3,094,622 3,651,126
Total liabilities 5,035,457 6,430,123
Total shareholders’ equity 9,918,793 13,718,157


Zima Holding Company (Zima) reported that the Board of Directors met on Aug 15, 2012 and approved the interim financial statements for the H1 period ending June 30, 2012.
For the three months ending June 30, 2012, the company announced a loss of KD 24,145 compared to a profit of KD 18,428 for the same period ending 2011.
Particulars (6 months ending) June 30, 2012 June 30, 2011
Profit (KD) (34,233) 21,506
Earnings per share (fils) (0.34) 0.215
Total current assets 6,403,739 6,628,366
Total assets 15,644,334 16,004,278
Total current liabilities 3,323,079 2,681,413
Total liabilities 4,279,354 4,248,920
Total shareholders’ equity 11,364,980 11,755,358


Kuwait Stock Exchange announced that the Board of Directors of Kuwait Pipe Industries Company (pipeline) met on Aug 15, 2012, and adopted the interim financial statements for the periods ending June 30, 2012.
For the three months ending June 30, 2012, the company reported a loss of KD 1,862,758 as compared to a profit of KD 114,851 for the same period ending 2011.
Particulars (6 months ending) June 30, 2012 June 30, 2011
Profit (KD) (2,852,658) (4,591,910)
Earnings per share (fils) (12.66) (20.37)
Total current assets 130,010,788 181,190,652
Total assets 197,580,301 250,347,136
Total current liabilities 129,595,440 156,080,547
Total liabilities 177,439,627 220,541,442
Total shareholders’ equity 18,734,415 27,254,156
The total revenue from transactions with related parties is worth KD 1,899,760.


Capital Market Authority approved the interim financial statements of Kuwait and Middle East Financial Investment Company (KMEFIC) for the first half period ending June 30, 2012, dated Aug 15, 2012.
KMEFIC reported a loss of KD 383,553 for the three months ending June 30, 2012 as compared to a loss of KD 683,343 during the same period ending 2011.
Particulars (6 months ending) June 30, 2012 June 30, 2011
Profit (KD) (348,746) (1,926,297)
Earnings per share (fils) (1.34) (7.38)
Total current assets 22,418,400 24,949,182
Total assets 53,341,104 62,206,526
Total current liabilities 1,686,000 26,266,017
Total liabilities 29,527,861 27,518,833
Total shareholders’ equity 22,218,518 32,910,792
The total revenue from transactions with related parties is worth KD 36,509.
Total expenses from transactions with parties amounts to KD (429,833).


The Sultan Center Food Company (TSC) reported that the Board of Directors met on Aug 15, 2012 and approved the interim financial statements for the H1 period ending June 30, 2012.
For the three months ending June 30, 2012, TSC made a profit of KD 310,043 as compared to a loss of KD 1,004,225 for the same period ending 2011.
Particulars (6 months ending) June 30, 2012 June 30, 2011
Profit (KD) 1,064,786 (3,922,933)
Earnings per share (fils) 1.89 (6.95)
Total current assets 45,151,082 50,497,771
Total assets 285,045,070 315,001,303
Total current liabilities 222,256,653 183,669,240
Total liabilities 245,336,617 244,732,236
Total shareholders’ equity 39,708,453 70,269,067
Total expenses from transactions with parties amounts to KD 803,892.