Finance Monthly April 2019 Edition

targeting startups and SMEs. These trends will continue to attract the interest of investment and financial companies who would be keen to capitalise on this vital and promising sector. The company is in the process of rebranding with the view of transitioning from traditional to modern while offering multiple new investment products and services to its clients. When it comes to the securities market, Al Safat Investment Co. holds a license issued from Capital Markets Authority to practice managing the investment portfolios business in its various kinds for the benefit of the company’s clients, in Kuwait and globally. The company has a team that specialises in working to achieve profitable returns on the managed portfolios of the company. The total managed funds account for over USD 120 Million as of January 2019. It manages local and regional investments of USD 300 Million. The company is also working on creative strategies and solutions in partnership with international consultants in order to provide the best opportunities for the benefits of its corporate and private individual clients. The administration of Al Safat Investment Co. is applying a secure and comprehensive strategy while managing the direct investments and the managed financial portfolios for the clients. Such portfolios target the operational companies, the leading stocks, fast-growing stocks and constant revenue stocks together with keeping up the ultimate geographical and sectoral distribution. With the company’s direct portfolio being distributed over seven sectors within five countries, the intent is to reduce the accompanying risks for these investments in addition to protecting the direct and client portfolios from the severe fluctuations of the market and the vulnerability the local and regional securities markets may be exposed to. Al Safat applies a conservative and safe strategy in the management of direct investments; managed portfolios of customer accounts are looking to further privatise government entities after the privatisation of the stock exchange and is also looking forward to being a listed company again. Under the guidance of Abdullah AlTerkait, represented by the board of directors and the executive management, the company is seeking to restructure the financial position, address the recent financial issues, leave the unprofitable and non-strategic investments, re-employ the investments in some strategic sectors and instruments, while also promoting the expansion activities of associated companies. The Chairman hopes this plan would benefit the years to come so that a concrete plan will be established for 2023. In fact, through its subsidiaries, the company is currently focusing on the various operational and industrial activities and is seeking to establish a new chemicals factory in Kuwait. Similarly, they have also developed an interest in the Oil and Gas sector and are looking for opportunities to invest. The company has a subsidiary called ‘The Carpet Factory’ which is looking to expand and invest in state-of- the-art technology to improve business and its products. Real estate is another sector AlTerkait is keen on embarking on and is in the process of developing a commercial and industrial complex in the Al-Ahmadi Industrial area of Kuwait. The group is also participating in the health sector through Kuwait Hospital, which will start operating this year and is also looking for acquisitions in various sectors, especially since there are attractive investment opportunities with outstanding profits in the local market. Abdullah AlTerkait and the management of Al Safat hope to reach their ultimate goal of being amongst the best investment companies in Kuwait in the next five years. The Chairman strongly believes that leaders should support the next generation of leaders in the business world and promote a good relationship between corporate and small businesses. “ “ Some highlights of Abdullah’s strategy for the company are: Set minimum investment returns that meet the company’s cost of capital. Grow the equity base through solid constant profits and cash dividend distributions to shareholders. Divest any non-performing assets. Ensure that the investments are aligned and maintain synergies. Improve management control which is a key factor. Set adequate policies and procedures within the group. Apply proper corporate governance for the best interest of the shareholders. www.alsafatinvest.com 15 www.finance-monthly.com EXECUTIVE INSIGHT - AL SAFAT INVESTMENT