Markaz Delivers Net Profit of Kd 1.1 Million for 9M 2022

Kuwait Financial Centre “Markaz” (KSE: Markaz, Reuters: MARKZ.KW, Bloomberg: MARKAZ:KK) reported its financial results for the nine months ended 30 September 2022 with Total Revenues of KD 11.24 million, as compared to KD 25.20 million in 9M 2021. This decline was primarily attributed to the severe decline of global equity markets due to inflation, rising interest rates, and ongoing geopolitical instability. These factors have increased the chances of a recession and an uncertain business outlook. Markaz delivered a Net Profit attributable to Shareholders of KD 0.53 million, compared to KD 13.79 million in 9M 2021.

Mr. Diraar Yusuf Alghanim, the Chairman commented: “The world economy continues to face significant pressure impacted by the ongoing war in Ukraine. Many countries are also still dealing with the lingering impact of Covid 19 and government policies in response to its containment. Central banks have gradually increased interest rates to control inflation, which has severe implications for business investments and consumer spending. Combined, these factors have led to global GDP weakness and declining output in G20 economies. The global equity markets have fallen, with the S&P 500 index dropping by 24.8% and the MSCI World Index by 26.4%. The GCC stock markets demonstrated resilience, with the S&P GCC index declining by 0.9% and Kuwait All Share Price index increasing by 0.9%. We believe that the outlook for global capital markets, real estate, and business fundamentals will be challenged in the near term as central banks continue tightening liquidity.

In terms of the Company’s results for 9M 2022, Markaz delivered Total Revenues (Excluding loss from Investments at Fair Value) of KD 12.18 million, up by 12.5% y-o-y. The growth was driven by a solid performance, with Management Fees and Commissions increasing by 32.7% to KD 9.3 million compared to KD 7.01 million in 9M 2021. Our real estate investment process remains stringent, focusing on fundamentals and developing projects with inherent competitive advantages. In addition, we have executed a number of investment banking mandates including equity issuances, bond issuances, and advisory services. We have expanded our market making activity, and currently cover 8 companies in the Kuwaiti market. Furthermore, our real estate and equity funds outperformed the benchmarks.