22 July 2007
KUWAIT: Al-Argan International Real Estate Co makes a market debut today and lists its shares on the Kuwait Stock Exchange (KSE), announced company officials yesterday. "We are here to announce the debut of Al-Argan on the KSE tomorrow, Monday July 23, 2007," said Mohammad Al-Kahtani, CEO, Al-Aman Investment Co, Al-Argan listing advisor, in a press conference yesterday introducing the company's strategy and future plans to investors. "Al-Argan may also list its shares on other regional stock markets in the future," said Al-Kahtani.
However, company officials declined to state a trading share price. "The price per share is decided on listing depending on supply and demand of the market," said Al-Saqqaf.
The company announced a widespread plans to expand in the MENA region as well as in the Asian and European markets. "For the past three years, we have been studying the real estate market in India and we are looking for a local partner there," said Khaled Al-Meshan, Chairman and Managing Director. "In the next five years we will be looking for opportunities in Iran, Turkey and Eastern Europe," he added.
During the past few years, Al-Argan began its operation region through developing and building a series of residential projects in Kuwait and expanded later to Oman, Bahrain, Saudi Arabia and Lebanon with a total investment of $655 million, as of 2006. The company focus mainly on building residential housing for middle class individuals, however, Al-Argan has also expanded its portfolio to include both residential and commercial projects.
Al-Argan is also examining opportunities in the MEAN region and "aims to form partnerships with local companies." "We have an established office in Egypt and we are currently studying the setting up of a residential project there," said Mohammad Al-Saqqaf, Vice Chairman and CEO. "We looking for a strategic partner in Egypt to help us operating there," he added.
According to the company statement, total cost of current projects which Al-Argan is engaged in are KD 122.365 million, while the total cost of the future projects are estimated at more than KD 1 billion. "Providing residential housing with affordable prices is an important point in our strategy in the coming period," said Al-Meshan.
Meanwhile, Al-Argan's net profit in 2006 reached KD 5.5 million, a 110 percent increase from profit posted in 2005, and assets hit KD 72 million in March 2007. However, Al-Saqqaf declined to comment on the projected profits for 2007. "The earning per share in end of 2006 was 22.10 fils, so for 2007 we are working on increasing this number," he added.
On the company's vision, strategy and various projects, Al-Meshan presented the different problems faced by the company throughout the years in every market the company involved in. "Since 2002, we are concentrating on markets outside of Kuwait in other regional markets such as Oman, Bahrain and Saudi Arabia," he said.
Asked on the reason behind Al-Argan's lack of interest in the Kuwaiti market and concentrating on other neighboring countries, Al-Meshan said: "The Kuwaiti market is very limited with respect to the land that could be developed." "Also the price per meter square in Kuwait is 10 times more the meter square in other countries such as Oman and Saudi Arabia," he added.
The private sector's limited role in development was another reason listed by Al-Meshan. "Bahrain is now taking serious steps towards increasing the sharing of the private sector in the development of the real estate market in the country. However, in Kuwait we didn't achieve any progress since the 80s till now," he said.
Al-Argan managed to raise its capital during the past few years from KD 2 million in 2002 to KD 26.5 million. "The reason behind raising the capital is the company's regional expansion through the past years," said Al-Meshan. "We are not considering raising the capital again in the near future," he concluded.
Established in 1994, Al-Argan's main activities are real estate investment and development of all forms of properties. The Kuwaiti real estate developer currently has branches in UAE, Bahrain, Oman, Saudi Arabia, Lebanon, Egypt.
KUWAIT: Al-Argan International Real Estate Co makes a market debut today and lists its shares on the Kuwait Stock Exchange (KSE), announced company officials yesterday. "We are here to announce the debut of Al-Argan on the KSE tomorrow, Monday July 23, 2007," said Mohammad Al-Kahtani, CEO, Al-Aman Investment Co, Al-Argan listing advisor, in a press conference yesterday introducing the company's strategy and future plans to investors. "Al-Argan may also list its shares on other regional stock markets in the future," said Al-Kahtani.
However, company officials declined to state a trading share price. "The price per share is decided on listing depending on supply and demand of the market," said Al-Saqqaf.
The company announced a widespread plans to expand in the MENA region as well as in the Asian and European markets. "For the past three years, we have been studying the real estate market in India and we are looking for a local partner there," said Khaled Al-Meshan, Chairman and Managing Director. "In the next five years we will be looking for opportunities in Iran, Turkey and Eastern Europe," he added.
During the past few years, Al-Argan began its operation region through developing and building a series of residential projects in Kuwait and expanded later to Oman, Bahrain, Saudi Arabia and Lebanon with a total investment of $655 million, as of 2006. The company focus mainly on building residential housing for middle class individuals, however, Al-Argan has also expanded its portfolio to include both residential and commercial projects.
Al-Argan is also examining opportunities in the MEAN region and "aims to form partnerships with local companies." "We have an established office in Egypt and we are currently studying the setting up of a residential project there," said Mohammad Al-Saqqaf, Vice Chairman and CEO. "We looking for a strategic partner in Egypt to help us operating there," he added.
According to the company statement, total cost of current projects which Al-Argan is engaged in are KD 122.365 million, while the total cost of the future projects are estimated at more than KD 1 billion. "Providing residential housing with affordable prices is an important point in our strategy in the coming period," said Al-Meshan.
Meanwhile, Al-Argan's net profit in 2006 reached KD 5.5 million, a 110 percent increase from profit posted in 2005, and assets hit KD 72 million in March 2007. However, Al-Saqqaf declined to comment on the projected profits for 2007. "The earning per share in end of 2006 was 22.10 fils, so for 2007 we are working on increasing this number," he added.
On the company's vision, strategy and various projects, Al-Meshan presented the different problems faced by the company throughout the years in every market the company involved in. "Since 2002, we are concentrating on markets outside of Kuwait in other regional markets such as Oman, Bahrain and Saudi Arabia," he said.
Asked on the reason behind Al-Argan's lack of interest in the Kuwaiti market and concentrating on other neighboring countries, Al-Meshan said: "The Kuwaiti market is very limited with respect to the land that could be developed." "Also the price per meter square in Kuwait is 10 times more the meter square in other countries such as Oman and Saudi Arabia," he added.
The private sector's limited role in development was another reason listed by Al-Meshan. "Bahrain is now taking serious steps towards increasing the sharing of the private sector in the development of the real estate market in the country. However, in Kuwait we didn't achieve any progress since the 80s till now," he said.
Al-Argan managed to raise its capital during the past few years from KD 2 million in 2002 to KD 26.5 million. "The reason behind raising the capital is the company's regional expansion through the past years," said Al-Meshan. "We are not considering raising the capital again in the near future," he concluded.
Established in 1994, Al-Argan's main activities are real estate investment and development of all forms of properties. The Kuwaiti real estate developer currently has branches in UAE, Bahrain, Oman, Saudi Arabia, Lebanon, Egypt.
By Rania El Gamal
© Kuwait Times 2007
