Markaz records Total Revenue of KD 20.31 million for 2024
Kuwait Financial Centre 'Markaz' (KSE: Markaz, Reuters: MARKZ.KW, Bloomberg: MARKAZ: KK) reported its financial results for 2024 with a Total Revenue of KD 20.31 million with a decrease of 23%, as compared to KD 26.32 million in 2023. The net profit attributable to shareholders of Markaz was KD 4.46 million, compared to KD 4.15 million in the same period last year, and earnings per share was 9 Fils for the year ended 31 December 2024. The Board of Directors has recommended a dividend of 7 fils per share (Subject to the AGM approval).
Mr. Diraar Yusuf Alghanim, Chairman at Markaz stated: In 2024, GCC economies showed resilience, with the MSCI GCC Countries Domestic Index up 5.9%. Kuwait outperformed with the All Share Index rising 8.0% and the Main 50 Index soaring 24%, driven by strong investor interest in mid-cap and small-cap stocks. Oil prices contributed to regional fiscal stability, while governments policies and investments have focused on economic diversification. The GCC average projected real GDP growth for 2024 is 1.4%, driven by economic diversification and infrastructure investments. The global economic environment in 2024 presented a blend of opportunities and challenges. Global GDP growth is projected at 3.2%, bolstered by easing inflation in developed economies. Emerging markets benefited from gradual improvements in supply chains and labor markets. However, geopolitical uncertainties and tariff-driven measures pose significant risks to sustained growth. Looking ahead, we are optimistic about the region's prospects and our capacity to capitalize on growth opportunities and deliver enduring value for our stakeholders.'
Mr. Ali H. Khalil, Markaz's CEO, stated: 'Markaz's Asset Management fees for 2024 were KD 8.73 million as compared to KD 7.17 million for the previous year. Investment Banking and Advisory fees for 2024 were KD 1.08 million as compared to KD 0.84 million for 2023, an increase of 29%. The year 2024 held special significance as we celebrated our 50th anniversary, a testament to decades of sustained growth through innovation and trust. Understanding that our clients' success is tied to our own, we prioritize enhancing the client experience to reinforce our market leadership. Our equities team capitalized on these opportunities across multiple funds and portfolios; our equity mutual funds MIDAF and Forsa Funds outperformed the benchmarks.
Markaz's real estate investments in the GCC region are characterized by operational efficiency, leading to optimal rental rates, high occupancy and collection ratios. These factors have significantly contributed to the income and returns of the Markaz Real Estate Fund (MREF) and the Markaz Gulf Real Estate Fund (MGREF), a private placement fund.
Our international real estate portfolio has performed well despite expanding capitalization rates and higher-than-expected interest rates. We have successfully sold projects in Europe and the United States. Markaz is now focusing on high-potential opportunities under the current market conditions, including leveraged senior debt in multifamily and industrial development projects in the U.S. and Europe.
The investment banking team demonstrated its innovative capabilities by successfully executing a KD 100 million bond program for the Commercial Bank of Kuwait and introducing the region's first KD-denominated convertible bond. Advisory services, including M&A, restructuring strategies, and feasibility studies, addressed complex financial structures for corporations and family-owned businesses. By focusing on creating long-term value, we aim to align our strategies with market dynamics and client needs, providing consistent growth and meaningful outcomes.'
Mr. Abdullatif W. Al-Nusif, Managing Director, Wealth Management and Business Development at Markaz, stated: 'Markaz Assets Under Management (AUM) increased by 16 % to reach KD 1.41 billion as of December 31, 2024. Despite market complexities, our strategic role as investment advisors enabled us to seize market opportunities effectively, as exemplified in our continued ventures into Private Equity, Private Credit, and Local Fixed Income in secondary markets. We strengthened relationships with leading local and regional institutions while expanding our client base. All these efforts led to Markaz being recognized by reputable organizations including Global Finance, EMEA finance, Euromoney, and MENA Banking Excellence, and winning (9) prestigious awards in asset management, investment banking, real estate, digital solutions, and innovation. Our goal is to provide our clients with the best innovative investment solutions that achieve their financial objectives, and we are committed to delivering high-end value.'
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