Performance at UGB’s major subsidiaries and associates has been strong and has contributed substantially to UGB’s revenues.

ASSET MANAGEMENT & INVESTMENT BANKING

KAMCO Investment Company K.S.C. (Public) (KAMCO)
UGB Consolidated Subsidiary based in Kuwait

Established in 1998, KAMCO is a leading asset management and financial institution in Kuwait. Its three principal business lines are asset management, financial services, and investment advisory research services, which are offered to a diverse local, regional and international client base. In 2015, despite a stressed economic environment, KAMCO’s continued focus on core operations and clients resulted in a 32% growth in fee income over 2015, while AUM declined slightly to US$ 10.7 billion in 2015 from US$ 11.6 billion in 2014. The Real Estate Yield Fund which was launched the previous year, distributed 3.7 cents per unit and was able to generate considerable investor interest. The MENA Plus Fixed Income Fund was also launched in 2015. KAMCO’s Investment Banking team continued to garner a significant share of announced transactions, locally as well as regionally. UGB owns 86% of KAMCO, which is listed on the Kuwait Stock Exchange.

For more information visit www.kamconline.com

United Gulf Financial Services Company North Africa (UGFS-NA)
UGB Consolidated Subsidiary based in Tunisia

UGFS-NA was established in November 2008 as an asset management entity and commenced operations in 2009. The Company is regulated by the Conseil du Marché Financier (CMF). UGFS-NA is primarily involved in three main activities: Portfolio Management Services (PMS), Fund Services, and Corporate Finance Services. The Company was active in all three areas of operations during the year. In terms of Fund services, UGFS-NA has launched 13 funds to date, with total AUM of US$ 39 million (TND 79 million). Under its Portfolio Management, UGFS-NA managed total AUM of US$ 4.9 million (TND 9.9 million) at the end of 2015. For its Corporate Finance services, UGFS-NA successfully completed a number of equity / debt mandates, and has built a healthy pipeline of financial advisory transactions. As at 31 December 2015, UGB’s consolidated shareholding in UGFS-NA stood at 85%. Its shares are not listed.

For more information visit www.ugfsnorthafrica.com.tn

North Africa Holding Company K.S.C (c) (NorAH)
UGB Associate Company based in Kuwait

Established in 2006, NorAH focuses on acquiring significant stakes in companies based in Morocco, Algeria, Tunisia, Libya and Egypt, which have demonstrated the potential to deliver real value. UGB has a total consolidated interest of 44% in NorAH, whose shares are not listed.

For more information visit www.northafricaholding.com

Manafae Investment Company K.S.C. (c) (Manafae)
UGB Associate Company based in Kuwait

 An Islamic investment company established in 2005, Manafae offers a wide range of Sharia-compliant products and services including asset management, investment services, extension of financing and credit, and advisory services. The Firm was one of the first to launch an Islamic mutual fund in 2007. The Manafae First Fund invests in listed and private companies, incorporated primarily in Kuwait and the GCC. As at 31 December 2015, UGB’s consolidated shareholding in Manafae stood at 31%. Its shares are not listed.

For more information visit www.manafae.com

COMMERCIAL BANKING

 

Burgan Bank K.P.S.C. (BB)
UGB Associate Company based in Kuwait

Established in 1975, the Burgan Bank Group is a subsidiary of KIPCO and operates in seven countries including Kuwait, Turkey, Jordan, Algeria, Tunisia, Iraq and Lebanon. The Bank is Kuwait’s second-largest lender in terms of assets, and has acquired a leading role in the commercial banking sector in the MENA region over the years. Its achievements in product innovation, information technology, efficiency, quality and corporate governance have been recognised by numerous awards, with several of them being either first or unique in the region. UGB has an equity stake of 17% in Burgan Bank, which provides it with a stable and recurring revenue stream, and the opportunity to access the Bank’s regional client base. Burgan Bank is listed on the Kuwait Stock Exchange.

For more information visit www.burgan.com

FIMBank p.l.c. (FIMBank)
UGB Consolidated Subsidiary based in Malta

 The consolidation strategy adopted in 2015 by FIMBank has started to yield its desired results. Through the implementation of a number of measures and initiatives, FIMBank succeeded in curtailing substantial impairments, whilst at the same time creating a revenue platform to generate value going forward. Aided by a strengthened leadership team and governance structures, FIMBank intensified its effort to maximise its resource potential, including a review of certain staff positions, and enhanced cost management processes, which resulted in positive performance during the second half of 2015. UGB holds a 61% stake in FIMBank, which is listed on the Maltese Stock Exchange.

For more information visit www.fimbank.com

SAVINGS AND PENSIONS

Takaud Savings & Pensions B.S.C (c) (Takaud)
UGB Consolidated Subsidiary based in Bahrain

Takaud Savings & Pensions is owned 50% each by the KIPCO Group and UGB. The objective of this new entity – the first of its kind in the region – is to specialise in offering savings and private pension products engineered and conceived primarily for customers in the MENA region. The overall scheme of the regional operation will involve either establishing specialised companies in different countries within the MENA region, or entering into distribution agreements. The Bahrain office will ensure market analysis, products engineering, distribution management, asset management and funds management in terms of definition of mandates and investment guidelines.

In 2015, the Company launched a wealth management service for mass-affluent customers; signed alliance partnerships with banks and insurance companies, including one of the top-tier private Swiss banks; and expanded its operations to two new MENA countries. The company’s shares are not listed.

For more information visit www.takaud.com

BROKERAGE

Al Sharq Financial Brokerage Company K.S.C. (c) (Al Sharq)
UGB Associate Company based in Kuwait

 Established in 1985, Al Sharq has grown to become one of the largest brokerage firms in Kuwait as measured by the number of transactions conducted on the Kuwait Stock Exchange (KSE). Al Sharq’s market share is approximately 20%. UGB owns 19% of the firm through its subsidiary KAMCO on a consolidated basis. Its shares are not listed.

For more information visit www.sharqetrade.com

NON-FINANCIAL ASSOCIATES

United Real Estate Company (URC)
UGB Associate Company based in Kuwait

Established in 1973, URC is involved in real estate activities that include the purchase, sale, lease and rental of land and buildings. The Company handles the construction of private and public buildings and projects, and manages third party properties in Kuwait, Egypt, Lebanon, Oman, Morocco and Jordan. The Company’s real estate portfolio includes commercial complexes, hotels and resorts, residential buildings, high-rise office buildings, and mixed- use developments. In Kuwait, these include, Marina Plaza, Marina Mall and Marina Hotel. URC is developing Abdali Mall in Jordan, Junoot in Oman, and Raouche Views in Lebanon; and developed Salalah Gardens Mall and Salalah Mall Residences in Oman. UGB owns a 21% stake in URC, which is listed on the Kuwait Stock Exchange.

For more information visit www.urc.com.kw

United Capital Transport Company (UNICAP)
UGB Associate based in Kuwait

UNICAP was established in 2011 as a joint venture between UGB’s subsidiary KAMCO and ANHAM, a leading contracting firm active throughout the MENA region, Central Asia and Europe. The Company is a leasing solutions provider to governments, international oil companies, and businesses involved in various construction, mining and industrial services. UNICAP offers timely, efficient and customer-focused equipment and logistical support services to a variety of clients and markets. Customised leasing, transportation and financing solutions are provided to vendors and customers to meet their specific needs within geographically-diverse and strategically-challenging markets. UGB owns 40% of UNICAP on a consolidated basis. The Company’s shares are not listed.

For more information visit www.unicapco.com