Al-Ritaj to focus investments in health and food industry

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KUWAIT: Al-Ritaj Investment companyAl-Ritaj Investment company announced that it has achieved 43% growth average for assets and growth stock 8.36 fils. The revenue obtained from assets is derived at 7.15% and average assets are totaled at 4.51%. Jihad Al-Qabandi, the Managing Editor and Executive Chairman, announced that the company would focus its investments, in the coming period, in health and food industry. This is in addition to services and activities in the private property sector and which the world economic crisis proved to be worth investing in and not affected much by the market turmoil.

Al-Qabandi announced that the company is currently studying the formation a health city in Kuwait or one of the GCC countries with an estimated value of $100 million. Well-known American hospitals to manage this city. All these health projects as Al-Qabandi pointed out, fall under the management of Al-Ritaj holding company.

In the food industry, Al-Qabandi said that the company has started preparing a holding company with a capital of 20 million dollars. Food companies working in close association are Kuwait Majed food company and the Health company. They disclosed the company's intention to start two new projects in the food sector in Jordan and Saudi Arabia.

With regard to the services sector, he continued that the company holds a share of 16 percent in a Hajj and Umra services company and has signed a contract to manage projects of this company. He added that the company is currently studying the opportunity to acquire a share in a Saudi Transportation Company.

He asserted that the company mostly uses self-finance in its activities and enough financing from banks. These countries are establishing projects so that local banks are not used. The latter is highly restricted to finance projects outside Kuwait.

He said that the financial situation of the company is good and all the positions have been filled. Its financial commitments in the long run does not exceed KD 20 million. He explained that 50% of the company's capital is invested in private properties, and the rest have been distributed to some portfolios. He added that the company has investments worth KD 16 million and can be liquidated any time.

Yaacoub Al-Awadi, Board Director, addressed shareholders and said that the revenue over the capital in 2008 reached 8.4percent, in addition to the revenue on the rights of shareholders which reached 7.2 percent in the next fiscal year. This is despite the consequences of the global economic crisis which left its negative impact on all companies. The assembly, however, agreed not to distribute profits and shares to shareholders in the fiscal year ending December 31, 2008.

By Nisreen Zahreddine

© Kuwait Times 2009