KUWAIT CITY : Kuwait-Syria Holding Company (KSHC) will be listed at the Kuwait Stock Exchange (KSE) on June 2, 2008 with National Investment Company (NIC) as its consultant, KSHC Board Chairman and Managing Director Mahmoud Al-Nouri said in a press conference Sunday at Al-Khorafi Hall in the KSE building. Al-Nouri said KSHC basically focuses on medium and long-term projects and operates in the Syrian market. "Syria is a developing country so its laws are either new and need further explanation or it will take time before they are issued. We have studied many projects - such as the manufacturing of bottle, sugar and pipe - but we have not yet invested in them due to lack of economic value. We also looked into a number of investment opportunities in the real estate sector, however, nothing is definite until now due to management difficulties."
Al-Nouri believes one of the basic points in the company's work strategy is for the Board of Directors to be cautious in choosing the projects and conduct a comprehensive study on a prospective investment before finalizing negotiations. He revealed the company is currently focusing on forging partnerships with strategic investors, such as a venture with Kingdom Company for the establishment of Four Seasons Hotel in which KSHC owns10 per cent of the capital.
The company also forged a partnership with Gulf Insurance Company (GIC), owning 10 per cent of shares in Kuwait-Syria Insurance Company (KSIC). KSHC will soon enter a deal with Al-Baraka Banking Group to own five per cent of shares in Al-Baraka Al-Sham Bank (BSB), Al-Nouri added.
Talking about the current projects of the company, Al-Nouri disclosed these projects include Four Seasons Hotel in Damascus, Syria, which will consist of 297 rooms, five restaurants, a big ballroom, three conference halls, business hall, health club and an annex of 13 offices and 13 commercial establishments.
Commercial
"The company earned high profits from this project in 2007 and distributed 10 per cent of the capital to its shareholders. Initial results for the first quarter of 2008 show our profits will be better than 2007 and will exceed our expectations," Al-Nouri revealed. KSHC's investment in KSIC also yielded remarkable results in 2007 - its first year of operations. Plans to open 10 branches in Syria this year are underway under the management of GIC, he added.
On the Kewan Touristic project, Al-Nouri said it includes a five-star hotel, which will be managed by Intercontinental Company. It also consists of a commercial market on an area measuring 13,000 square meters, entertainment areas for children and adults, three cinema halls, an international commercial center and a historical landmark, which can be used as a restaurant or club. With an estimated total cost of $217 million, KSHC will implement the project with Al-Kharafi Group of Companies in accordance with Syrian laws and BOT system. The company will also execute a real estate project near Damascus in which 300 villas will be constructed on an area measuring 452,000 square meters.
Al-Nouri confirmed KSHC had earlier signed a contract with Al-Baraka Company to own five per cent of the $100 million capital in a bank that will operate based on the Islamic Sharia. Al-Baraka Banking Group from the United Arab Emirates (UAE) in addition to several investors from Saudi Arabia, Jordan and Syria are also investing in this project. The bank is expected to operate by the end of this year after floating 35 per cent of its capital for public subscription.
The company also signed a Memorandum of Understanding (MoU) with Sham Holding Company in Syria, owning 16 per cent stakes in this project. KSHC also aims to establish a company with a capital of $100 million for the construction of power stations, water treatment stations and drainages according to the BOT system, which will start this year, Al-Nouri concluded.
By Abubakar A. Ibrahim
© Arab Times 2008
