KUWAIT CITY, Oct 29: This October, Kuwait Financial Centre "Markaz" proudly commemorates its 50th anniversary as a pioneering force in asset management and investment banking across the region. Each milestone along its distinguished journey tells the story of a company that has firmly established itself as a paradigm of institutional excellence within the financial sector, resonating both regionally and globally.

Foundation and Legacy

Established in 1974 amidst an era of oil-driven economic ascension, Markaz was built to create a transformative financial institution that would align with international markets, open global investment avenues for Kuwaiti investors, and lay the groundwork for Kuwait’s evolution as a financial hub. Central to Markaz’s original vision was the persistent belief that without a vibrant, well-regulated capital market, the private sector could not realize its full potential in undertaking pivotal public and private projects that would fortify the national economy. This conviction remains deeply embedded in Markaz’s ethos.

Over the decades, Markaz has distinguished itself as a pioneer, introducing innovative investment products in the local market and establishing inroads into new markets. These strides included founding the first investment bank in South Korea with Hyundai Engineering and Construction in 1976, launching its real estate investments in Los Angeles, USA, in 1978, and acquiring a significant stake in the Bank of Lebanon and Kuwait in 1979. Markaz has been instrumental in advancing the investment, industrial, and real estate sectors, locally and internationally.

In the post-reconstruction phase of the 1990s, Markaz’s Board of Directors restructured the Company’s paid-up capital and increased it from KD 3.5 million to approximately KD 40 million. The Company was publicly listed in Kuwait Stock Market in 1997 with an ambitious plan to offer advanced financial services, to promote direct and indirect investment and to establish investment and real estate funds according to the best international practices.

Markaz’s growth trajectory has been fueled by its pursuit of unique investment opportunities and its unmatched expertise in crafting pioneering financial solutions that address present-day client needs while anticipating future trends. Its commitment to delivering meaningful value to clients, shareholders, and the communities it serves is apparent, with current assets under management totaling KD 1.38 billion, which is a testament to the resilience and enduring influence Markaz commands in Kuwait’s financial landscape and beyond.

Leadership Through Innovation

Guided by its vision to be the ideal partner in wealth creation and growth, Markaz continues to lead in innovation by creating investment avenues with unique characteristics and forging new pathways for investors. This relentless pursuit of innovation has been the cornerstone of Markaz’s journey since inception. Among its pioneering products are the Markaz Fund for Excellent Yields (Mumtaz), Kuwait’s first domestic mutual fund; the Markaz Real Estate Fund, the first real estate investment fund in Kuwait; and the Markaz Forsa Financial Fund, the first options market maker in the GCC since 2005. Recent innovations include the GCC Momentum Fund, the first of its kind in the region, employing a momentum strategy to invest across GCC markets.

In investment banking, Markaz structured and launched Kuwait’s first convertible bonds denominated in Kuwaiti dinars for a client, further solidifying its role as a structuring advisor and issue manager. Markaz also structured the first BOT-backed bonds in Kuwait, issued the first Sukuk for a Kuwaiti real estate company, and pioneered the first high-yield bond in the Kuwaiti market. It continues to provide elite advisory services in mergers, acquisitions, restructuring, and valuation to top-tier companies.

Markaz’s presence has transcended geographical borders, offering a diverse array of real estate products, investment funds, asset management services, and unique Islamic financial instruments. Since 2005, Markaz has established a firm presence in KSA and UAE real estate sectors and then expanded beyond the GCC and MENA region. International real estate operations in Europe and the United States are actively pursued through Mar-Gulf, Markaz’s real estate arm based in Los Angeles, California, amplifying Markaz’s global footprint.

Corporate Governance

The Board of Directors implemented a prudent governance policy, evolving into a robust governance framework prior to the issuance of related laws and regulations, diligently applied by the executive management. This commitment has positioned Markaz among a select few Kuwaiti companies that voluntarily established a formal corporate governance structure. Markaz has taken crucial measures to assess governance risk and implement internal controls and administrative systems, aligning with the best international practices.

Corporate Social and Economic Responsibility

Markaz extends its legacy of excellence through extensive societal contributions, participating in initiatives that foster human capacity, enrich knowledge, and support economic advancement. Additionally, Markaz sponsors events and initiatives designed to enhance community development and empower youth, playing a pivotal role in strengthening the financial sector in Kuwait and the region.

These efforts are rooted in Markaz’s foundational social and economic responsibility strategy, which rests on three principal pillars: building human capacity, aligning the business environment with the principles of sustainable development, and promoting good governance in the business environment. Markaz’s dedication to sustainability is underscored by its distinction as the first investment company in Kuwait to voluntarily publish a sustainability report. It regularly supports impactful events through partnerships with organizations advancing social and economic goals.

In support of Kuwaiti youth talent, Markaz launched its Graduate Development Program in 2017, aimed at cultivating the next generation of leaders in the financial services industry. This one-year program provides Kuwaiti graduates with invaluable practical experience and skill development in a professional setting, preparing them to meet the evolving demands of Kuwait’s job market. Since its inception, the program has trained 57 Kuwaiti graduates, with 42% subsequently employed.

A Legacy of Awards

Over the past five decades, Markaz has earned nearly 90 awards from esteemed financial and media institutions, reflecting its unwavering commitment to building trust with clients, investment professionals, and the financial sector across the region. In 2024 alone, Markaz has garnered seven awards from EMEA Finance, MEED, Euromoney, and Global Finance, spanning asset management, investment banking, real estate, investment advisory, digital solutions, and innovation.

Markaz’s Workforce

For half a century, Markaz’s teams have been its most valued asset, embodying the spirit of its enduring journey. Every member brings passion, expertise, and professional insights, striving to provide superior service to clients. Markaz promotes an employee-driven culture that values diversity, inclusivity, and collaboration. The company invests substantially in professional development, career advancement, and regular employee recognition initiatives. In 2023, Markaz relocated its headquarters to Burj Alshaya, enhancing operational efficiency and elevating client service.

50th Anniversary Advertising Campaign

Reaffirming its client-centric ethos, Markaz launched an anniversary campaign under the theme "50 Years of You at the Center," celebrating 50 years of putting clients at the heart of its operations. This campaign reflects Markaz’s pride in its clients, with a television commercial shared across Markaz’s social media channels and cinemas in October. The ad embodies success stories of different clients’ segments across generations whom Markaz has supported in reaching their financial and investment aspirations as a trusted partner in wealth creation.

Looking Ahead

Markaz’s 50th anniversary is a defining moment in its history, embodying a legacy of positive impact on the national economy, society, and wealth creation for clients. Markaz’s unwavering commitment to integrity and transparency, with clients as its primary focus, has strengthened its position as a leader across local and regional financial markets. This solid foundation ensures Markaz will continue meeting client needs and achieving shared growth objectives.