Kuwait family conglomerate the Kharafi Group, which has an annual turnover of around $5bn and is already active in 25 countries, is looking to Asia as its next target for investment, a senior family member told Arabian Business.
“Asia is a growing market but it is high risk… We are looking at a couple of opportunities there,” Bader Al Kharafi, a member of the executive council, told Arabian Business in an interview in the company’s headquarters in Kuwait City.
“You can be an investor or run and manage the company. We are looking at investments, maybe some private equity funds, those types of products where they have a good team… Transport, renewable energy and with what is happening in China we would definitely look at renewable energy. These are the sectors we think we could [invest].”
The Kharafi Group has operations in 25 countries around the world, from Senegal to Botswana to Kazakhstan and The Maldives, and has more than 120,000 employees.
The family business has always had strong connections with Egypt, from power stations along the Nile Delta to contracts at Marsa Alam International Airport and the Red Sea’s Port Ghalib, one of the biggest marina resorts in the Middle East.
“The group is well established in Egypt,” Al Kharafi said. “I would disagree with people who say we are linked to one party or another regime. The Kharafi Group is linked to Egypt and we are probably one of the only ones from Kuwait that have full ownership as a non-Egyptian company. We have believed in Egypt for more than 50 years ago and we believe there is huge potential there.
“During the revolution it was a bit tough, particularly in the tourism sector as we have a few hotels and resorts there. But overall it has been doing well… We have things in the pipeline but we can announce them. We are in the oil and gas sector with an Egypt holding company. We have a few hotels and resorts along the Red Sea and we have a few factories and we are also dealers of Mitsubishi cars now. I think there is a good potential,” he added.
While he is confident in potential in Egypt, Arab Spring conflicts in Syria has meant the group’s activities there have been put on hold: “As you see in the news, everything is kind of frozen… We will see.”
Looking to the future, Kharafi outlined the sectors he believed will perform the best this year: “I can see definitely the food sector is great, whenever you have a crisis people still eat. We will be one of the major players. The health sector is booming. Telecoms, people talk more and we will definitely get new customers. Slower growth [will be] in real estate and investments.”
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