Mabanee's Net Profit Up 44% In 2013
News: Kuwait-based Mabanee Real Estate Company's net profit rose 44% year-on-year to KWD47.9mn (USD170mn) in 2013, compared with KWD33.3mn (USD118.22mn) in 2012. The company's overall operational revenue reached KWD79.4mn (USD281.89mn), while shareholder equity grew to KWD229.87mn (USD816mn) during the year. Total assets increased to KWD406.3mn (USD1,442.47mn) in 2013. Buoyed by these positive results, the board of directors announced a cash dividend of KWD0.025 (USD0.0888) a share and 5% bonus shares of the paid up capital as of December 31 2013 for shareholders of record until the day of the General Assembly Meeting.
BMI View: Kuwait has rebounded from previous Real Estate Risk/Reward Ratings for the Middle East and Africa in 2014, and is now third out of the eight countries covered. Strengthening indicators driven by robust state wealth and comfortable oil prices boosted the country's rating, although was still restrained by factors that hamper the business environment, such as project delays. Bureaucracy and a lack of transparency in the tendering process continue to cause problems. However, the injection of an additional USD12.6bn goes some way to reducing risks in the sector. Kuwait's total score is a 66.0 out of 100.