Central Bank of Kuwait
The Central Bank of Kuwait (CBK) was established on June 30, 1968, in accordance with Law No. (32) of 1968 concerning currency, the Central Bank of Kuwait and the organization of banking business. CBK started operations effective April 1, 1969.
Article (15) of that Law states that the objectives of the Central Bank are: to exercise the privilege of the issue of currency on behalf of the State; to endeavor to secure the stability of the Kuwaiti currency and its free convertibility into foreign currencies; to endeavor to direct credit policy in such a manner as to assist the social and economic progress and the growth of national income; to control the banking system in the State of Kuwait; to serve as Banker to the Government; and to render financial advice to the Government. To achieve these objectives, the CBK has used a number of monetary policy instruments provided for in the Bank's Law, which were derived basically from the local needs, and were in harmony with local conditions and international events that affect the local market.
During its course of more than forty years, the CBK has adopted continuous modernization of its activities, especially the following:
- The developing and strengthening of governance standards in the banking and financial institutions in the State of Kuwait.
- The continuous efforts to strengthen the openness of the domestic banking and financial sector to the outside world through achieving financial liberalization by adopting a group of legislative and organizational procedures, which include the introduction of amendments to the CBK's Law so as to provide the CBK with the authority to license foreign banks to operate in the domestic market.
- The issuance of instructions to all banking and financial system units regarding the application of policies and regulations to be observed in regard to combating money laundering.
- The adoption of new legislation for organizing Islamic banking in the State of Kuwait, namely Law No. (30) of 2003, which added a special section on Islamic banks to the third chapter of the CBK's Law.
KIPCO
KIPCO - the Kuwait Projects Company –- is one of the biggest diversified holding companies in the Middle East and North Africa, with assets worth more than US$ 21 billion under management or control. The company is listed on the Kuwait Stock Exchange and has a current market capitalisation of US$ 4.7 billion.
Founded in 1975, KIPCO Group has substantial ownership interests in a portfolio of 50 companies operating across 21 countries and employing over 7,000 people. The Group’s main business sectors are financial services and media. Through the subsidiaries and affiliates of its core companies, KIPCO also has interests in Real Estate, Industry, Healthcare and the Management & Advisory sector.
KIPCO is committed to good corporate governance and transparency. In 2005, through its Shafafiyah (transparency) programme, the company became the first in the Gulf region to provide shareholders and investors with annual financial forecasts and business reviews. This programme now includes annual presentations from all of KIPCO’s listed companies.
KIPCO and its core operating companies are rated by international credit agencies. KIPCO has a BBB+ stable credit rating from Standard & Poor’s, a Baa1 long-term rating and a Prime-2 short-term rating with stable outlook from Moody’s and a A- stable rating from Capital Intelligence.
Financial Services
KIPCO’s Financial Services interests include holdings in commercial and investment banking, asset management and insurance. KIPCO’s core operating companies in this sector include United Gulf Bank, Gulf Insurance Company and Burgan Bank.
Media
Through its portfolio of strategic investments, KIPCO is capitalising on the convergence of the information technology and broadcasting industries. The Group’s core operating companies within this sector include United Networks and Showtime - the region’s leading pay-TV operator.
Real Estate & Industry
KIPCO has sizeable real estate investments in the Middle East and substantial investments in the manufacturing, dairy and food service sectors.
Medical, Management and Advisory
KIPCO has major interests in Kuwait’s service sector including substantial investments in the local healthcare and education markets. The Group’s Management & Advisory companies provide advice to clients on direct investment, private placement, mergers and acquisitions, derivatives and corporate restructuring.
