Identifier
Created
Classification
Origin
07KUWAIT944
2007-06-19 09:05:00
CONFIDENTIAL//NOFORN
Embassy Kuwait
Cable title:
LEADING ASSET MANAGEMENT COMPANY LAUNCHES KUWAIT
how-toVZCZCXRO9220 PP RUEHBC RUEHDE RUEHKUK RUEHROV DE RUEHKU #0944/01 1700905 ZNY CCCCC ZZH P 190905Z JUN 07 FM AMEMBASSY KUWAIT TO RUEHC/SECSTATE WASHDC PRIORITY 9391 INFO RUEHEE/ARAB LEAGUE COLLECTIVE PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 KUWAIT 000944
SIPDIS
NOFORN
SIPDIS
STATE FOR NEA/ARP, EB, ECA
TREASURY FOR DAS AHMED SAEED, JONATHAN ROSE
E.O. 12958: DECL: 06/18/2017
TAGS: ECON EDU EFIN KU PREL SCUL
SUBJECT: LEADING ASSET MANAGEMENT COMPANY LAUNCHES KUWAIT
EDUCATION FUND
Classified By: Ambassador Richard LeBaron for reasons 1.4 (b) and (d).
C O N F I D E N T I A L SECTION 01 OF 02 KUWAIT 000944
SIPDIS
NOFORN
SIPDIS
STATE FOR NEA/ARP, EB, ECA
TREASURY FOR DAS AHMED SAEED, JONATHAN ROSE
E.O. 12958: DECL: 06/18/2017
TAGS: ECON EDU EFIN KU PREL SCUL
SUBJECT: LEADING ASSET MANAGEMENT COMPANY LAUNCHES KUWAIT
EDUCATION FUND
Classified By: Ambassador Richard LeBaron for reasons 1.4 (b) and (d).
1. (SBU) On June 17, Ambassador met with KIPCO Asset
Management Company (KAMCO) Chairman Masaud Al-Hayat and
senior executives to discuss KAMCO's launch of the Kuwait
Education Fund. The Fund, established in collaboration with
the National Offset Company (NOC),will invest in companies
and financially feasible projects to improve education in
Kuwait. (Note: NOC represents the Ministry of Finance in
the administration of the Offset Program. The Offset Program
requires foreign firms to invest 35 percent of the contract
value for all civilian contracts equal to or greater than KD
10 million and all defense contracts equal to or greater than
KD 1 million in the State of Kuwait. End note.)
2. (C/NF) According to KAMCO, a record 500,000 students are
enrolled in Kuwait's education system, the result of both
population growth and demographics -- over 60 percent of
Kuwaitis are under the age of 21. GOK spending has not kept
up with demand or advancements in education technology and
other related areas. KAMCO hopes that greater investment
will correct this shortcoming and has been working with the
Ministry of Finance since 2002 to establish this fund. KAMCO
recognizes that public sector buy-in is important and will
meet with the Minister of Education shortly to coordinate
long-term efforts.
3. (C/NF) The Fund had its first closing in May 2007 with
initial capital of KD 5.8 million and KAMCO executives are
optimistic. The Fund not only presents investors with a
unique opportunity to contribute to Kuwait's future, said
KAMCO Deputy General Manager Anthony Kyprianou, it also
provides foreign companies a place to deposit their offset
contributions worry free. Moreover, Offset obligated
investors in the Fund will be credited with the maximum
possible Offset multiplier of 5 (ie. a USD 7,000 investment =
USD 35,000 towards Offset obligations),leading to a
significant lowering of Offset-related expenses. KAMCO is
still exploring investment opportunities and hopes to provide
investors with returns over the long-term. The next planned
subscription date for the Fund is December 2007. Key
investors as of the first closing in May 2007 were: Doosan
Heavy Industries and Construction Company, South Korea;
Oerlikon Contraves S.p.A, Italy/Switzerland; Kuwait Fund for
Arab Economic Development, Kuwait; Sultan Centre for General
Trading and Contracting, Kuwait; United Gulf Bank, Bahrain (a
KIPCO holding); and KAMCO, Kuwait.
4. (SBU) The Ambassador lauded KAMCO's vision and encouraged
fund managers to reach out to existing youth organizations
such as LOYAC - a Kuwaiti youth empowerment NGO - and INJAZ
(Junior Achievement's Kuwait chapter). He further noted
strong demand for specialized programs, including short-term
educational exchanges, and special education services,
encouraging KAMCO to explore possibilities in these areas.
He pointed to Amideast's successful program in Kuwait, noting
the need to further expand these offerings.
Company Background
--------------
5. (C/NF) Established in 1988, KAMCO is a member of Kuwait
Projects Company (Holding)(KIPCO) group, which is among the
largest holding companies in the Middle East. KIPCO's
Chairman is Shaykh Hamed Al-Sabah Al-Ahmad Al-Jaber Al-Sabah,
son of the Amir of Kuwait. KAMCO has total revenues of KD
26.7 million and manages over KD 1.9 billion in assets.
KAMCO posted a 322 percent increase year-on-year in first
quarter 2007 net profits. Total company assets also
increased by 25 percent year-on-year to KD 154 million.
KAMCO initially focused on the real estate sector and
expanded into banking and other sectors with the launch of
the GOK's privatization plan in the 1990s. KAMCO the turned
its sights to the technology sector. KAMCO is now using the
proceeds from its 2006 sale of shares in NMTC (Wataniya
Telecom) to expand its asset management and financial
services base.
6. (SBU) The meeting was also attended by KAMCO General
Manager Saudoun Ali, Burgan Bank (a KIPCO holding) Board
Member Majed Al-Ajeel, KAMCO Deputy General Manager Anthony
Kyprianou, KAMCO Head of Corporate Finance Faisal Sarkhou,
and Econoff Leah Cato (notetaker).
********************************************* *
For more reporting from Embassy Kuwait, visit:
http://www.state.sgov.gov/p/nea/kuwait/?cable s
KUWAIT 00000944 002 OF 002
Visit Kuwait's Classified Website:
http://www.state.sgov.gov/p/nea/kuwait/
********************************************* *
LeBaron
SIPDIS
NOFORN
SIPDIS
STATE FOR NEA/ARP, EB, ECA
TREASURY FOR DAS AHMED SAEED, JONATHAN ROSE
E.O. 12958: DECL: 06/18/2017
TAGS: ECON EDU EFIN KU PREL SCUL
SUBJECT: LEADING ASSET MANAGEMENT COMPANY LAUNCHES KUWAIT
EDUCATION FUND
Classified By: Ambassador Richard LeBaron for reasons 1.4 (b) and (d).
1. (SBU) On June 17, Ambassador met with KIPCO Asset
Management Company (KAMCO) Chairman Masaud Al-Hayat and
senior executives to discuss KAMCO's launch of the Kuwait
Education Fund. The Fund, established in collaboration with
the National Offset Company (NOC),will invest in companies
and financially feasible projects to improve education in
Kuwait. (Note: NOC represents the Ministry of Finance in
the administration of the Offset Program. The Offset Program
requires foreign firms to invest 35 percent of the contract
value for all civilian contracts equal to or greater than KD
10 million and all defense contracts equal to or greater than
KD 1 million in the State of Kuwait. End note.)
2. (C/NF) According to KAMCO, a record 500,000 students are
enrolled in Kuwait's education system, the result of both
population growth and demographics -- over 60 percent of
Kuwaitis are under the age of 21. GOK spending has not kept
up with demand or advancements in education technology and
other related areas. KAMCO hopes that greater investment
will correct this shortcoming and has been working with the
Ministry of Finance since 2002 to establish this fund. KAMCO
recognizes that public sector buy-in is important and will
meet with the Minister of Education shortly to coordinate
long-term efforts.
3. (C/NF) The Fund had its first closing in May 2007 with
initial capital of KD 5.8 million and KAMCO executives are
optimistic. The Fund not only presents investors with a
unique opportunity to contribute to Kuwait's future, said
KAMCO Deputy General Manager Anthony Kyprianou, it also
provides foreign companies a place to deposit their offset
contributions worry free. Moreover, Offset obligated
investors in the Fund will be credited with the maximum
possible Offset multiplier of 5 (ie. a USD 7,000 investment =
USD 35,000 towards Offset obligations),leading to a
significant lowering of Offset-related expenses. KAMCO is
still exploring investment opportunities and hopes to provide
investors with returns over the long-term. The next planned
subscription date for the Fund is December 2007. Key
investors as of the first closing in May 2007 were: Doosan
Heavy Industries and Construction Company, South Korea;
Oerlikon Contraves S.p.A, Italy/Switzerland; Kuwait Fund for
Arab Economic Development, Kuwait; Sultan Centre for General
Trading and Contracting, Kuwait; United Gulf Bank, Bahrain (a
KIPCO holding); and KAMCO, Kuwait.
4. (SBU) The Ambassador lauded KAMCO's vision and encouraged
fund managers to reach out to existing youth organizations
such as LOYAC - a Kuwaiti youth empowerment NGO - and INJAZ
(Junior Achievement's Kuwait chapter). He further noted
strong demand for specialized programs, including short-term
educational exchanges, and special education services,
encouraging KAMCO to explore possibilities in these areas.
He pointed to Amideast's successful program in Kuwait, noting
the need to further expand these offerings.
Company Background
--------------
5. (C/NF) Established in 1988, KAMCO is a member of Kuwait
Projects Company (Holding)(KIPCO) group, which is among the
largest holding companies in the Middle East. KIPCO's
Chairman is Shaykh Hamed Al-Sabah Al-Ahmad Al-Jaber Al-Sabah,
son of the Amir of Kuwait. KAMCO has total revenues of KD
26.7 million and manages over KD 1.9 billion in assets.
KAMCO posted a 322 percent increase year-on-year in first
quarter 2007 net profits. Total company assets also
increased by 25 percent year-on-year to KD 154 million.
KAMCO initially focused on the real estate sector and
expanded into banking and other sectors with the launch of
the GOK's privatization plan in the 1990s. KAMCO the turned
its sights to the technology sector. KAMCO is now using the
proceeds from its 2006 sale of shares in NMTC (Wataniya
Telecom) to expand its asset management and financial
services base.
6. (SBU) The meeting was also attended by KAMCO General
Manager Saudoun Ali, Burgan Bank (a KIPCO holding) Board
Member Majed Al-Ajeel, KAMCO Deputy General Manager Anthony
Kyprianou, KAMCO Head of Corporate Finance Faisal Sarkhou,
and Econoff Leah Cato (notetaker).
********************************************* *
For more reporting from Embassy Kuwait, visit:
http://www.state.sgov.gov/p/nea/kuwait/?cable s
KUWAIT 00000944 002 OF 002
Visit Kuwait's Classified Website:
http://www.state.sgov.gov/p/nea/kuwait/
********************************************* *
LeBaron