I am not trying to be a protectionist in any way but clearly Kuwaiti investment houses and merchant families were badly hit during the financial crisis and have started to offload their assets. The government, famously renown for staying at the sidelines, seems to be enjoying that scenery very much!
At a point in time, Kuwait used to be a leader in all aspects and that included telecommunications. MTC, was the first mobile telecommunications company in the region and the first to introduce GSM. The government reduced its share, the company started its expansion phase and enjoyed significant growth until June 2010, when Bharti Airtel completed a deal to buy Zain’s businesses in 15 African countries for $10.7 billion. Zain became structurally impaired as its focus was changed from a global to regional reach. Currently, Zain could be nearing the end of a year-long stake sale saga, with Abu Dhabi-listed Emirates Telecommunications thought to be running the rule over its regional rival for part or all of Al- Khorafi’s 14% direct stake in Zain. Moreover, in 2007, Qatar Telecom (Qtel) acquired 51% of Wataniya Telecom shares from Kuwait Projects Company Holding KSC (KIPCO) group and 2008 marked the arrival of Saudi Telecom’s Kuwait unit, VIVA, which is still not wholly owned by Kuwait.
A couple of weeks ago, rumors spread that Madam Mouza of Qatar showed interest in NBK and was building a stake that would make her eligible to participate in the upcoming capital increase. More lately, rumors have spread that Al Kharafi have placed half of their 67% stake in Kuwait Food Co (Americana) for sale. Not to mention the sudden appearance of Mr. Mahmoud Haidar and his spending spree.
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Loading ...Tags: Al-Kharafi, Americana Group, Kuwait, Qtel, Viva, Wataniya, Zain
There is talk of NBK selling a 10% stake to UAE..
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What matters is not ownership per se but rather control – and where that control is exercised. There is nothing wrong with a element of foreign capital in even the largets Kuwaiti institutions such as NBK – but only if the institutions continue to be controlled and managed from Kuwait. As a non-Kuwaiti I have always thought that one of the greatest weaknesses if the Kuwaiti economy has been its apparent inability to create sufficient high quality jobs in the peivate sector to absorb the growing population of young graduates and school leavers. Not everyone can work for the sate – and not everyone can have their own business.
Keeping strong private sector companies headquartered in Kuwait is vital – where are the decisions made at BKME now?
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but kuwait is a beautiful country i like it and the peoples are peace and muslims country
i miss kuwait
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last year i went to kuwait its anazing !!!!
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