Kuwait Financial Centre, Markaz announced on Sunday a rise in total revenue to KD 26.32 million ($85.6 million) in 2023 from KD 18.80 million in 2022, buoyed by gains from selling international and GCC real estate investments.
The net profit for shareholders increased to KD 4.15 million from KD 2.86 million in 2022, while earnings per share stood at $8.50 at the end of 2023.
The GCC economies saw significant growth in 2023, fueled by progress in Saudi Arabia and the UAE. The MSCI GCC index rose by 7.7 per cent in 2023, chairman Diraar Yusuf Alghanim said.
Alghanim added that looking at the national economy, the IMF predicts a 2.9 per cent real GDP growth in 2024, supported by favourable oil market conditions and inflation that will stay relatively low.
He further stated that the global economy faced hurdles in 2023 due to rising inflation, increasing interest rates, conflicts in the Middle East, and strained U.S.-China relations that exacerbated supply chain issues, leading to a drop in global GDP growth to 3.1 per cent.
However, artificial intelligence is transforming the asset management sector by providing valuable insights for decision-making, portfolio construction, and risk management, paving the way for a future where data is key, he added.
Markaz’s asset management fees fell to KD 7.17 million in 2023 from KD 10.60 million the previous year, according to CEO Ali H. Khalil.
Markaz witnessed a 25.4 per cent increase in investment banking and advisory fees, alongside a net rental income of KD 2.19 million driven by improved GCC real estate markets, additionally, the company’s Assets Under Management (AUM) grew by 5.03 per cent to KD 1.21 billion, Khalil further said.
He also added that, despite ongoing market concerns, Markaz’s risk-adjusted investment approach would continue to serve its clients well.
Khalil emphasised that their deep understanding of client financial goals has been key to their success, with the return of favourable M&A conditions, their investment banking team is ready to advise on transactions, restructurings, listings, and IPOs.
He also mentioned that they anticipate promising opportunities in the real estate sector due to regional reforms, which will benefit their real estate division. Markaz’s flexible strategy and client-focused approach position them well to seize emerging opportunities in asset management and investment banking.
