Total Revenues for 9M 2023 of KD 14.04 million, an increase of 24.9% y-o-y

Kuwait Financial Centre “Markaz” (KSE: Markaz, Reuters: MARKZ.KW, Bloomberg: MARKAZ: KK) reported its financial results for the nine months ended 30 September 2023 with Total Revenues of KD 14.04 million, as compared to KD 11.24 million in 9M 2022, reflecting a year-on-year increase of 24.9%. Net Profit attributable to shareholders of Markaz is KD 0.71 million, compared to KD 0.53 million in 9M 2022.

Mr. Diraar Yusuf Alghanim, Chairman stated: “The investment landscape has become more challenging and complex with the escalating geopolitical tensions and humanitarian crises unfolding in the Middle East region. For the first nine months of the year, the S&P GCC Composite index has effectively remained flat, while it decreased by -1.55% during the third quarter of 2023, driven by high interest rates. Kuwait all share index total return declined by -2% in 9M 2023, and by -1.17 in Q3 2023. It is currently uncertain in which direction interest rates will move, as the political pressure to manage soft landings and avoid recessions intensifies.

We successfully exited two industrial projects in the US and Netherlands, achieving a net weighted average IRR of 18.6% and 11.9%, respectively, despite continued strong economic headwinds. Markaz has invested around USD 145 million in real estate across multifamily, industrial, and senior housing. Markaz continued its investment activity in the GCC region to explore the emerging opportunities and the developments in these markets in general and the Saudi market in particular. As of September 30, 2023, Markaz’s Assets Under Management (AUM) increased by 1.5% to reach 1.16 billion, compared to September 30, 2022.

During Q3 2023, Markaz concluded successfully, as the lead manager and subscription agent, the first Tranche of the first KD denominated Tier II Bonds for Commercial Bank of Kuwait. The Issue size was KWD50 million with tenor is 10 years callable in 5 years.

Markaz has a robust business model with a combination of management fees, advisory revenues, and gains from real estate investments. A core fundamental part of our culture is taking investment decisions on a risk-adjusted basis, to ensure our clients achieve their financial objectives, within the challenges in the asset management industry and the investment environment.”