KIPCO – Kuwait Projects Company (Holding) – held its Annual General Assembly, chaired by the company’s Vice Chairman, Sheikh Abdullah Naser Sabah Al Ahmad Al Sabah. The AGM approved all items on the agenda.

KIPCO’s Group Chief Executive Officer, Sheikha Dana Naser Sabah Al Ahmad Al Sabah, gave a presentation following the AGM in which she highlighted the achievements of 2024 and gave an outlook for 2025.

Strategic Priorities

Sheikha Dana Naser Al Sabah outlined KIPCO’s strategic journey since 2022, stating:

“In 2022, we embarked on a strategic journey aimed at paving the way for sustainable growth and long-term value creation. As we focus on growth across our companies, we believe that we have positioned KIPCO as a future-ready holding company that is ready to harness synergies and identify new business opportunities.”

The first of the three phases of KIPCO’s strategic journey was to conduct a comprehensive assessment of KIPCO’s portfolio, engagement model and capital structure. This was followed by the second phase, which is ongoing and involves targeted reforms to strengthen the creation of value for shareholders through stronger engagement with subsidiaries, transformative mergers and acquisitions, consolidation, divestments and ownership reorganization. The third phase is to focus on growth, whether within the portfolio or through entering new markets, sectors or partnerships.

Geographic Footprint

KIPCO’s Group CEO noted that the company believes in rising potential and boundless opportunities in the MENA region, with 65% of its assets in Kuwait and countries of the Gulf Cooperation Council. Despite the shifting global dynamics and instability in the MENA region, there remains strategic advantages for businesses across various sectors.

Liability Management

Sheikha Dana Naser Al Sabah noted that KIPCO’s strategic journey involved efforts to proactively manage liabilities to strengthen the company’s capital structure. Total repayments and/or exchanges of EMTNs and bonds in 2023 and 2024 reached a total of US$ 1.15 billion. In 2024, the company also fully repaid its US$ 525 million syndicated facility nearly one year ahead of its maturity date. These efforts underscore KIPCO’s prudent approach to liquidity and proactive approach to liability management.

KIPCO’s 2024 Results

KIPCO’s strategy has strengthened the company’s financial performance. In 2024, total revenue increased 16.4% to KD 1.5 billion, net profit stood at KD 15.6 million, total assets were up 3.7% to KD 13.0 billion, shareholders’ equity rose 3.7% to KD 633.9 million and book value increased 3.7% to 139 fils per share. Portfolio companies reflected growth across different indices, reflecting the efforts to enhance their performance throughout 2024.

Major Transactions

Sheikha Dana Naser Al Sabah highlighted Burgan Bank’s acquisition of 100% of Bahrain-based United Gulf Bank from United Gulf Holding. The acquisition gives Burgan Bank access to an Islamic banking window, as well as expansion into the GCC markets, namely Bahrain, Saudi Arabia and the UAE. It will also allow for the integration of asset and wealth management services, resulting in greater synergies and cross-selling.

The Group CEO spoke of developments at OSN, emphasizing Warner Bros. Discovery’s (WBD) 30% strategic investment in OSN Streaming Ltd. She said:

“The deal is a global endorsement by a best-in-class international strategic investor of OSN’s creative talent, advanced technology and market position. The strategic impact of the acquisition covers synergies of content growth, including the production of local content to cater to audiences in the MENA region, as well as solidifying the position of OSN+ as a market leader in the streaming entertainment business.”

Digital Transformation

KIPCO’s Group CEO underscored the importance of digital transformation and its application across all businesses to enhance overall performance and fuel growth.

In its third year, Burgan Bank Turkey’s digital banking platform, ON, has gained one million subscribers, with a market share of 5.2%. ON’s digital optimization propelled its market share of vehicle loans to 6.9% among private banks in Turkey.

As for OSN+ and Anghami, both the mobile and television applications have been revamped and 4K and Dolby Atmos features were introduced. User experience, search and recommendations have also been enhanced.

Our Focus

In closing, Sheikha Dana Naser Al Sabah talked about KIPCO’s focus for the coming years, as it continues its journey of growth. She said:

“Our primary target in the coming years will be to continue to enhance wealth creation for our shareholders. We are executing this through three focused tracks, the first of which is deleveraging and selective asset monetization. The second area of focus is enhancing the financial and operating performance of our key companies to reach double digit growth in revenues and net profits. Finally, we will continue to strive for stable and growing positive cashflows from sustainable dividend distribution and growth of our key businesses.”