KIPCO to launch private equity fund in 2009

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HIGH AIMS: KIPCO expects to double its annual profit in 2009 and cut costs by 20 percent. (Getty Images)

Kuwait Projects Co (KIPCO) said on Monday it expects to launch a private equity fund targeting the Middle East and North Africa in 2009, if market conditions are suitable.

KIPCO expects to double its annual profit in 2009 and cut costs by 20 percent, Chief Executive Faisal Al Ayyar told a news conference on Monday.

Its 2008 profit fell to KD24.1m ($82.8m) from KD521.7m in the previous year. The company posted a loss of KD59.5m in the fourth quarter 2008.

"Despite the current financial crisis, KIPCO expects to double its annual profit in 2009 if the current market conditions do not deteriorate, and we expect the company to increase its revenue by 10 percent or more during the year," Al Ayyar said.

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"KIPCO has a very strong liquidity position and no debt repayment for 20 months," he added. Kuwait's biggest investment firm by assets, which owns stakes in 50 companies and operates in 21 countries, aims to launch a regional savings and pension product as part of its expansion in 2009, if market conditions allow, said Al Ayyar.

He said the firm is performing well in the first-quarter of 2009. ($1=KD0.2912) (Reuters)