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Mushrif shares to be traded on Kuwait Stock Exchange from tomorrow

KUWAIT: Mushrif Trading and Contracting Co (KSCC), one of Kuwait's leading contracting companies, is to join the Kuwait Stock Exchange on May 22, 2006. It will be listed under the shorter name of Mushrif, or MTCC, in the services sector. The listing is sponsored by Kamco Asset Management Financial Services as the consultant.

Mushrif has evolved into a leading contracting company after 38 years in business. The company has carried out many huge public sector projects, involving the country's infrastructure, public services, and general developments. "The company has also completed a number of private sector contracts, although the competition with other huge contracting companies working in this field was stiff," said Fahad Al-Wazzan, Chairman of Mushrif.

All economic indexes are positive currently. Also the details of the budget announced by the Ministry of Planning and the Kuwait Central Bank is indicating an increase in the budget for capital spending, maintenance contracts and the developing plans for Kuwait's infrastructure in the next few years.

Building and construction activities in the commercial economy have also increased. "The planned expansion has increased dramatically and created new business opportunities for contracting companies in Kuwait. This will be of huge benefit to the company in the coming years," Al-Wazzan added.

Mushrif also has experience in the oilfield. Oil projects account for six per cent of the company's activities.

"Mushrif started work on oil projects in 2001, and has established a special division for this work. This allowed the company to reach great achievements, as it has received certification from some major oil companies in a number of fields. We now have a grand project in this sector - the oil export port, and are working as subcontractors with other international companies on behalf of the KOC," Al-Wazzan noted.

Mushrif also conducts many projects outside Kuwait. "We are working in various parts of the GCC, including Abu Dhabi, Ras Al-Khayma, Qatar, and Iran. The company has representative offices throughout Bahrain, Yemen, and Iraq, although the latter is not yet operational, as we are waiting until the security situation improves. We are working on one of the largest projects in Qatar, in cooperation with a French and a Japanese company, to expand the West Qatar water refinery station," he added.

"In the UAE, we are working on the infrastructure and the foundations of the largest shopping mall in Abu Dhabi (the Abu Dhabi Shopping Centre). In Ras Al-Khaima we are establishing a factory preparing diamonds.

In Iran it's the sewage water tunnel pipes, and in Bahrain the developing and expanding of sewage water station," Al-Wazzan said.

Mushrif made KD 1.831 million in profits last year, which equals 61.5 fils per a share. "Mushrif is one of the regions fastest growing construction companies. The value of the present contracts Mushrif is working on in Kuwait alone is KD 215 million. The most recent of these projects is the Seawater Cooling Towers that cost $54 million, and was carried out in cooperation with the German company Dywidag International Gmbh.

Contracts outside Kuwait are valued at KD 47 million," he pointed out.

The increase in the oil price and subsequent rise in liquidity has created a huge surplus in the national budget. "This surplus should be employed in development and infrastructure projects. These projects will create substantial opportunities for the private sector, especially contractors," said Radwan Jamal, the Assistant GM for Development, Kamco.

By Nawara Fattahova

© Kuwait Times 2006