Board of Directors' Reports: 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001

Dear Shareholder,
2007 was the year of Wataniya: the sale of our holdings in the company is the largest sale of a private sector company in the history of Kuwait, the biggest cross-border deal in the Gulf region and achieved a record valuation in the telecom industry.

The sale exemplified KIPCO’s core strategy of building and then realizing the value of its businesses. The return on our original investment in Wataniya reflects the quality of KIPCO’s assets and management.

The completion of this extremely complex sale in little more than ten days is a testament to the strengths and ability of the management team we have in place. We are blessed with the kind of management that exceeds the expectations placed upon it and we have the highest confidence that it will continue to lead your company to even greater success.

During 2007, your company also disposed of other assets, raising significant funds which are now being used to finance the next stage of KIPCO’s development as we explore opportunities for growth in existing and new sectors.

As a consequence of these achievements, your company has delivered the best results in its history. We are extremely pleased to report that in 2007, KIPCO’s profits increased by 942 per cent and our revenue by 288 per cent. These results are the highest ever reported by a listed company in Kuwait – a remarkable achievement for your company.

2007 was also the year when KIPCO attained the highest international credit agency rating for any private corporate sector company in the MENA region. The award of a BBB+ longterm rating by Standard & Poor’s is a sign that your company has created a global reputation unmatched by our competitors.

We are pleased to report that during 2007, we have continued to develop synergies between our businesses and opportunities for cross-selling between them.

We also continued to focus on our core constituencies – our shareholders, employees, clients and community – through a number of exciting new programmes. In particular, Masharee Al Khair, our charitable foundation, funded the Gulf region’s first public awareness campaign on dyslexia – a condition which brings misery to many in our country. The campaign was a huge success and KIPCO has been commended for its commitment to our society.

As to the general business situation during the last year, Kuwait’s economy benefited from continued high oil prices and positive steps taken by the government. The de-pegging of the dinar from the US dollar, the cut in corporate taxes for foreign companies and the abolition of capital gains tax for foreign investors in our stock market will undoubtedly help our economy gain ground from other financial centres in the region.

Indeed, a recent report by Credit Suisse argues that the steps taken by our government in 2007 will stimulate an influx of foreign investment into Kuwait and produce a major boost for the stock market. We look forward to this development, as Kuwait had lagged behind other markets in the region. Kuwait’s business community should do everything possible to welcome and encourage further foreign investment, since this will open our economy to the healthy disciplines of the global marketplace.

We would like to thank His Highness, the Amir of the State of Kuwait, Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, His Highness, the Crown Prince Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah and His Highness the Prime Minister Sheikh Nasser Al-Mohammad Al-Ahmad Al-Sabah for their continuing support and guidance.

We would also like to thank you, our shareholder, for the support and trust you have placed in your Board of Directors and our management team during the last 12 months. We are certain you will also join us in thanking the employees of KIPCO and our operating companies for all their hard work during 2007.

Above all, Mr Al Ayyar and his management team deserve our warmest congratulations for the outstanding results they achieved during 2007.

May God continue to grant us success and prosperity.