Statistical statements

Investment sector in the Kuwaiti market is playing a leading role for several reasons, the most important of which is that it comprises 44 companies already listed in the stock exchange (as of 30/6/2006) at 20% approximately of total number of enlisted companies (172 companies) that is the highest among the different market sectors. The capital of the investment companies is KD1,510 millions, i.e. 28% of total market capital amounting to KD5,397 millions. The market value of investment sector was KD7,643 millions, i.e. 21% of total market value amounting to KD36,564 millions as of 30^th June 2006. The profits of the investment companies during 2005 were KD1,143 millions approximately, i.e. 32% of total profits of the enlisted companies (it is to be noted that the statements of Shoua’aa Company and Egyptian Kuwait Shareholding Company have been added to Investment sector in accordance with the latest classification made by stock exchange without mentioning their activities within the book). The investment sector is characterized by well P/E average that was 7.60 times of the market that was 11.7 times.

Based on the aforementioned statements we can conclude the importance of this essential sector in the market. Further this sector can undertake several tasks in the market via institutional trading through investment portfolios and funds administered by it. Moreover, it can play the role of market maker. Consequently this sector can lead the market and achieve balance between supply and demand. In this away it will reduce the impacts of unexpected drop of the market and protect small investors. In addition to the fact that those who are administering these investments are professionals and so the market can be developed and investment awareness can be promoted along with providing more transparency.

 The investment sector and financing services are divided into two main divisions, namely:

1-     Companies that are mainly indulged in investment and administering investment portfolios and funds. These companies are divided into investment companies that practice conventional activities and other companies that conduct business in accordance with the provisions of the Islamic law.

2-     Service companies that provide financial services. These companies are divided into companies that provide conventional financial services and other companies that provide Islamic financial services.

Hereunder are illustrative tables explaining the enlisted investment companies and financing companies as per category: