You are on page 1of 12

Global Research

Sector Construction
June 2014

GCC Contractors

GCC Construction Contractors 1Q14

Sector profit grows 15.8%YoY to USD67mn in 1Q14


Backlog rises 23.2%YoY in 1Q14
Construction activity slows down in Saudi Arabia
Gross margin at 11.0% in 1Q14, down from 11.5% in 1Q13

Profit grew 15.8%YoY to USD67mn in 1Q14


GCC contractors (GIH Coverage) recorded a profit of USD67mn, up 15.8%YoY from
USD58mn in 1Q13. Heavyweight Arabtec continued to drive the sectors profit during the
quarter; Arabtecs profit grew 120.7%YoY to USD38mn. AKS profit rise of 78.4%YoY to
USD9mn also supported sector growth. On a QoQ basis, sector profit rose 18.8%. The
increase was mainly driven by AKS and Arabtec. Profit of AKS and Arabtec grew
285.2%QoQ and 13.0%QoQ, respectively.
Order backlog rises 23.2%YoY and 3.8%QoQ in 1Q14
Total value of projects awarded rose to USD1.7bn in 1Q14 from USD0.8bn in 1Q13,
mainly due to a surge in the order receipt of Arabtec and GECP. Arabtecs order receipt
rose to USD1.1bn in 1Q14 from USD0.2bn in 1Q13, while GECPs order receipt
increased to USD75mn in 1Q14 from USD31mn in 1Q13. Total backlog grew 23.2%YoY
and 3.8%QoQ to USD12.8bn in 1Q14.
Construction activity slows down in Saudi Arabia
While Saudi Arabia remains the regions largest construction market, contract awards for
the 1H-2014 are 66% down on the same period in 2013. The USD12.8bn worth of deals
awarded in the first half of 2013 were then swiftly followed by the USD22.5bn-worth of
contracts let on the ambitious Riyadh Metro project in the third quarter. While projects as
large as the Riyadh Metro do not come along that often, the number of contract awards
has dropped in 2014 and, while markets such as Dubai are picking up, the kingdoms
construction sector has failed to live up to expectations so far this year. The potential is
still there, with billions of dollars-worth of social infrastructure, transport and industrial
schemes in the pipeline.
Labor laws and bureacracy concerns for KSA; Dubai expo key catalyst for UAE
Implementation of the recent labor laws have not only created labor shortage but also
dented margins in the Kingdom. Moreover, Saudi contractors continued to face
bureaucratic obstacles, which slowed down project activity, adding to the contractors
woes. Nevertheless, the Dubai Expo 2020 would act as a key catalyst for the UAE as it
would bring in huge infrastructural investments into the country.
GCC Construction Contractors

Hettish Karmani
Senior Manager Research
hkumar@global.com.kw
Phone: (965) 2295-1281
Global Investment House
www.globalinv.net

Al Khodari, KSA
Arabtec, UAE
DSI, UAE
Nass Corp, Bahrain
CGC, Kuwait
Galfar, Oman

Mkt Cap
(USDmn)
618.8
3,733.6
958.1
103.9
414.5
278.8

Price
In (LC)
43.7
3.1
1.5
0.2
1.1
0.4

Stock Performance
1m
3m
12m
12.4% 25.0% 39.6%
-49.8% -22.1% 109.0%
0.7%
-9.4% 63.8%
0.6%
5.3% 19.5%
-5.2%
-4.0%
-8.6%
0.0%
0.0%
0.2%

P/E
2014e
23.45
28.11
16.56
NA
NA
NA

P/BV
2014e
2.66
2.33
1.13
NA
NA
NA

Source: Bloomb erg & Glob al Research


* Market prices as of 24 June 2014

Please see penultimate page for additional important disclosures. Global Investment House (Global) is a foreign broker-dealer
unregistered in the USA. Global research is prepared by research analysts who are not registered in the USA. Global research is
distributed in the USA pursuant to Rule 15a-6 of the Securities Exchange Act of 1934 solely by Cadwyn Point Partners LLC, an SEC
registered and FINRA-member broker-dealer.

Global Research - GCC

GCC Construction Sector

GCC construction industry stays around USD2.6tr


The GCC construction market is valued at 2.6tr (ongoing projects only) as per the Zawya Projects. Saudi Arabia
continues to enjoy the highest market share of 35.5%, with projects valued at USD938.1bn of the total. Next is UAE
with projects valued at USD821.6bn or 31.1% of the total, while Qatar has projects worth USD376.8bn or 14.3% of
the total construction market. Bahrain has the lowest projects valued at USD55.5bn or 2.1% of the total market.

Share of Real Estate and Infrastructure rises to 67.1%


In broad sectors, combined share of Real Estate and Infrastructure rose to 67.1% (March 2014) from 64.8%
(December 2013) of total GCC construction market. Real Estate leads the table with 40.6% market share of the total
construction market, followed by Infrastructure with 26.5%. Within Real Estate, UAE tops the chart with 44% market
share, while Saudi tops in Infrastructure with 41.3% share. With Riyadh Metro worth USD22.5bn and Doha Metro at
USD6.2bn, transportation (includes Airports, Roads, Bridges, Export/Import Terminals, Metro, Railways and other
public transportation projects) constitutes the largest segment with 23.9% of total GCC construction industry size.

Labor laws and bureaucracy continue to concern Saudi Arabia


KSA contractors continue to struggle with bureaucracy and new labor laws; the government recently cracked down
on illegal workers in the country to improve employment for locals. This has resulted in an exodus of laborers from
KSA, which has significantly affected the construction industry. This is reflected in the considerable decline in the
1Q14 gross margin of sector heavyweight AKS.

Dubai Expo a potential catalyst


We believe the UAE would benefit significantly from Dubai Expo 2020 as it would bring in investments worth
AED30bn (USD8.1bn) for new infrastructure during the next 10 years. Projects worth USD6.8bn are expected to be
completed in the run-up to the event in 2020. This would prove beneficial for local contractors by easing competition,
which has been driving margins down for some time. The 438-hectare Expo 2020 site, which is expected to be
completed at a cost of USD24bn, itself is a major project. We expect Arabtec and DSI, the two biggest contractors
in Dubai, to reap maximum benefits due to their wider expertise and strong market presence.

Order backlog rises 23.2%YoY and 3.8%QoQ in 1Q14


Order backlog surged 23.2%YoY to USD12.8bn in 1Q14, after rising 20.5%YoY in 4Q13. Total value of projects
awarded was USD1.7bn, up 101.6%YoY from USD0.8bn in 1Q13. On a QoQ basis, projects awarded increased
78.3%. Arabtec and GECP boosted the sectors total project awards. Arabtecs project awards rose to USD1.1bn in
1Q14 from USD0.3bn in 1Q13, while those of GECP increased to USD75mn in 1Q14 from USD31mn in 1Q13. UAE
contractors had the largest order backlog, led by Arabtec and DSI, which accounted for 68% and 17% of the sectors
backlog, respectively.

Gross margin contracts to 11.0% in 1Q14 from 11.5% in 1Q13


The sectors gross margin stood at 11.0% in 1Q14, down from 11.5% in 1Q13. However, on a QoQ basis, gross
margin improved from 9.3% in 4Q13. Operating margin also contracted to 4.9% in 1Q14 from 5.5% in 1Q13. This
trend supports our view that the sector would continue to witness declining margins as rising construction costs and
stiff competition eat into the profits of GCC contractors.
Gross Margins & ROE - 1Q14

8%

AKS

NASS

18%
12%
12%
6%
6%
CGC

GECP
GECP
DSI
CGC

ARTC
NASS
ARTC

Net Margin

Return on Equity

Receivable Days & Net Margins - 1Q14


10%

30%
18%
24%

NASS
AKS NASS
AKS

DSI

4%

DSI
CGC

2%

0%

8%
4%

11%
8%

ARTC

6%

CGC

5%
0%

ARTC

14%
12%

Gross Margin

17%
16%

20%

0%
100
120

140
180

GECP
GECP

180 240 220

300
260

300
360

Receivable Days

Source: Company Reports & Global Research

June - 2014

Global Research - GCC

GCC Construction Sector

Contractors Financial Performance


Business activity in the GCC construction sector continues to grow in 1Q14, evident from the 23.2%YoY growth in
order backlog, while the sectors profit surged 15.8%YoY to USD67mn in 1Q14. The growth was mainly driven by
Arabtec and AKS, which saw profits soar 120.7%YoY and 78.4%YoY, respectively.
Arabtecs growth was driven by a 39.3%YoY revenue increase due to a larger order backlog and improved project
execution, particularly in the UAE (revenue up 66.9%YoY to AED1.4bn). Consequently, gross profit surged
73.2%YoY, resulting in a 3.0 percentage point improvement in gross margin to 115.3% in 1Q14 from 12.3% in 1Q13.
Moreover, the construction segments (68.4% contribution in total revenue) share in gross profit rose sharply to 61.5%
in 1Q14 from 42.7%, which resulted in the expansion of gross margin by 4.2 percentage points to 13.8%. Moreover,
SG&A costs (as a percentage of revenues) fell to 7.4% during the quarter from 8.3% in the corresponding quarter last
year, but were up on a QoQ basis from 5.6% in 4Q13. Thus, higher gross margin coupled with lower SG&A costs
resulted in significant improvement in operating margin to 7.9% in 1Q14 from 4.0% in 1Q13. However, Arabtec posted
negative other income of AED19.1mn compared with AED37.9mn due to its share of loss (AED45.8mn) from its
associate DEPA Ltd. Consequently, Arabtecs net profit margin improved to 6.4% in 1Q14 from 4.0% in 1Q13.
Similar to Arabtec, AKSs growth was led by higher other income (increased SAR41.3mn YoY due to annual auction
of machinery during the quarter) and lower selling and marketing costs (4.6% of revenue vs. 6.4%). However, gross
margin contracted severely to 4.8% in 1Q14 from 13.3% in 1Q13 due to higher sub-contracting cost resulting from
replacement of non-performing sub-contractors. Furthermore, manpower cost rose 30.6%YoY due to execution of
more labor-intensive projects. Meanwhile, a 68.6%YoY rise in finance charges, led by higher debt and depreciation
due to use of more equipment for newly awarded projects, depressed net profit. However, net profit margin improved
to 6.9%, up from 5.3% in 1Q13, driven by higher other income.
The sectors profit growth, however, was restricted by a 28.0%YoY decline in DSI 1Q14 profit. The decline was mainly
due to higher cost of sales (up 3.3%YoY to 92.3% of revenue) driving down gross margin to 9.6% in 1Q14 from
10.6% in 1Q13. However, DSIs SG&A costs (as a percentage of revenues) declined to 5.2% in 1Q14 from 5.5% in
1Q13. Moreover, rise in other income (up 57.6%YoY) and net finance income of AED0.4mn compared with finance
cost of AED1.5mn restricted the fall in net profit. Meanwhile, an AED1.5mn loss from investment in joint ventures
depressed net profit.

GCC Construction Sector* - Quarterly Performance


(USD mn)
Sales Revenue
Cost of Sales
Gross Profit
Operating Expense
Operating Profit
Financial Charges
Net Profit

1Q13
1,279
1,132
148
78
70
13
58

4Q13
1,581
1,434
147
90
57
22
57

1Q14
1,500
1,335
165
91
74
15
67

QoQ
-5.2%
-7.0%
12.4%
1.6%
29.7%
-34.3%
18.8%

YoY
17.2%
17.9%
11.7%
17.2%
5.4%
13.1%
15.8%

Gross Margin (%)


Operating Margin (%)
Net Margin (%)

11.5%
5.5%
4.5%

9.3%
3.6%
3.6%

11.0%
4.9%
4.5%

Source: Company Report & Global Research


* Includes Arabtec, DSI, AKS, NASS Corp, GECP and CGC

On a QoQ basis, the sectors profit grew 18.8%, mainly driven by AKS and Arabtec. Profit of AKS and Arabtec grew
285.2%QoQ and 13.0%QoQ, respectively. AKSs profit increase was driven by higher other income due to annual
auction of machinery during the quarter. On the other hand, Arabtecs profit growth is mostly ascribed to lower cost of
sales resulting in gross margin improving to 15.3% from 10.8%.

June - 2014

Global Research - GCC

GCC Construction Sector

Projects and Contracts

Overall GCC projects market stands at USD2.43tn as of Mar-2014


Contract awards in Middle East up 84.0%QoQ during 1Q14
Saudi Arabia continues to be a leader in the projects market

GCC Projects Market Size


2,500

(USD bn)

2,000
1,500
1,000
500

2005

2006

2007

2008

2009

2011

Mar-13

1Q-13

2004

3Q-12

0
2010

Mar-14

1Q-14

4Q-13

3Q-13

2Q-13

4Q-12

2Q-12

1Q-12

4Q-11

3Q-11

2Q-11

1Q-11

4Q-10

3Q-10

2Q-10

1Q-10

4Q-09

3Q-09

2Q-09

1Q-09

4Q-08

3Q-08

2Q-08

80
70
60
50
40
30
20
10
1Q-08

(USD bn)

MENA Contract Awards

Projects Country Wise


1,800
Mar-13

Mar-14

(USD bn)

1,440
1,080
720
360
0
Saudi Arabia

June - 2014

UAE

Oman

Kuwait

Qatar

Global Research - GCC

GCC Construction Sector

Contracting Companies
New order receipts surge to USD1.7bn in 1Q14 from USD0.8bn in 1Q13
Backlog rises to USD12.8bn in 1Q14 from USD10.4bn in 1Q13
Arabtec continues to lead in order backlog (68%), followed by DSI (17%) and AKS (11%)
Order Receipts 1Q14

Order Receipts (Aggregate)

1.0
1.7

2.0
1.3
0.9

0.8

1.0

0.8
0.6
0.4
0.2

0.1

0.2

0.3

Arabtec

GECP

1Q14

4Q13

3Q13

2Q13

1Q13

DSI

AKS

(USD bn)

1.1

1.2

3.0

3.0

(USD bn)

Includes aggregate of Arabtec, DSI, GECP and Al-Khodari

Backlog 1Q14
8.0

Backlog (Aggregate)
14.0
12.2

12.1

12.3

(USD bn)

13.0
12.0
11.0

10.4

6.0

2.0

10.0

3.3

4.0
0.9

1.5

Arabtec

DSI

1Q14

4Q13

3Q13

2Q13

1Q13

GECP

9.0

AKS

(USD bn)

7.1

12.8

Includes aggregate of Arabtec, DSI, GECP and Al-Khodari

Backlog Market Share 1Q14

Order Receipts Market Share 1Q14


AKS
7%

AKS
11%
Arabtec
68%

Arabtec
55%

GECP
12%

GECP
4%
DSI
17%
Market size assumed to be the aggregate of the mentioned players

June 2014

DSI
26%
Market size assumed to be the aggregate of the mentioned players

Global Research - GCC

GCC Construction Sector

Financials in Chart
EV/Backlog (x) v/s Backlog/Sales (x)
1.2x
AKS

EV/Backlog
(Last Reported)

1.0x

Arabtec

0.8x
GECP

0.6x
0.4x
0.2x

DSI
4.5x

4.0x

3.5x

3.0x

2.5x

2.0x

1.5x

1.0x

0.0x

Back Log/Sales (Last Reported)


Size of the Bubble represents Market Cap

Gross Margins 1Q14

Net Margins 1Q14


10.0%

19.0%

8.0%
15.0%
6.0%
11.0%
4.0%
7.0%

2.0%

3.0%

0.0%
ARTC

DSI

AKS NASS CGC GECP

Receivables Outstanding (Days) 1Q14

ARTC

DSI

AKS NASS CGC GECP

Inventory Stock (Days) 1Q14

350
80
300
64
250
48
200

32

150

16

100

ARTC

June 2014

DSI

AKS

NASS CGC GECP

ARTC

DSI

AKS

NASS CGC GECP

Global Research - GCC

GCC Construction Sector

Operating Expense to Sales 1Q14

Debt to Equity (x) 1Q14

16.0%

200.0%

12.0%

150.0%

8.0%

100.0%

4.0%

50.0%

0.0%

0.0%
ARTC

DSI

AKS NASS CGC GECP

ROE 1Q14

ARTC DSI

AKS NASS CGC GECP

ROA 1Q14

16.0%

8.0%

12.0%

6.0%

8.0%

4.0%

4.0%

2.0%

0.0%

0.0%
ARTC

DSI

AKS NASS CGC GECP

Cash as % of Assets 1Q14

ARTC

AKS NASS CGC GECP

Cash as % of Debt 1Q14

20.0%

200.0%

15.0%

150.0%

10.0%

100.0%

5.0%

50.0%

0.0%

DSI

0.0%
ARTC

June 2014

DSI

AKS NASS CGC GECP

ARTC DSI

AKS NASS CGC GECP

Global Research - GCC

GCC Construction Sector

APPENDIX
DSI - Business Segments
Segments
Revenue Share (%)
Net Profit Share (%)

Engineering
46.4
68.5

Civil
43.6
29.7

Oil & Gas


6.2
22.3

Others
3.8
-20.6

* For 1Q14

ARABTEC - Business Segments


Segments
Revenue Share (%)
Net Profit Share (%)

Construction

MEP

68.4
103.3

8.6
3.2

Oil & Gas, Infrastructure


and Power
27.1
36.1

Others
5.6
-42.5

* For 1Q13, Total might not add up because of eliminations

Abdullah A. M. Al-Khodari Sons Company - Business Segments


Segments
Revenue Share (%)
Gross Profit Share (%)

Contracting
99.5
95.8

Trading
0.5
4.2

* For 1Q14

June 2014

Global Research - GCC

GCC Construction Sector

Order Receipts / New Awards (Latest)

Drake & Scull International


Country

Segment

Kuwait
Algeria
UAE

Engg.-MEP
Civil
Engg.-MEP

Egypt

Civil

Project Name
Sheikh Jaber Cultural Center ,Retail & Health care Facilities
Mixed-use development in Algiers
Plaza View, a mixed-use development in Abu Dhabi
OSBL construction and civil works for Utilities and offsite
facilities for Tahrir Petrochemical Corporation Project

Size (USDmn)
35
40
30
599

Abdullah A. M. Al-Khodari Sons Company


Country

Segment

KSA

Contracting

KSA

Contracting

KSA

Contracting

June 2014

Project Name
Construction of Storm Water Drainage Channels, Networks
and Clearing Wadi Sulai (Phase 2) from Ministry of Municipal
& Rural Affairs (Riyadh Municipality)
2nd phase of the construction of the Support Deanship
Building from Ministry of Higher Education (Taibah
University)
Engineering, Procurement and Construction of 33KV Switch
Stations from Royal Commission for Jubail & Yanbu

Size (USDmn)
14

9
21

Global Research - GCC

GCC Construction Sector

Factors Influencing Profitability


110

2,200

105
2,000
(USD/Ton)

(USD/bbl)

100
95

1,800

90
1,600

85
80

1,400
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

Crude Oil, WTI

Aluminum

8,500

160

8,000

7,500

(/dmtu)

(USD/Ton)

140

7,000

120

100

6,500

6,000

80
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

Iron ore

750

67.5

730

66.8

710

66.1

(USD/Ton)

(USD/Ton)

Copper

690

670

65.4

64.7

650

64.0
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14
Steel Rebar

1Q12 1H12 9M12 2012 1Q13 1H13 9M13 2013 1Q14


Cement

Source: World Bank Pink Sheets & Glob al Research

June 2014

10

Global Research - GCC

GCC Construction Sector

IMPORTANT DISCLOSURES FOR U.S. PERSONS


This research report was prepared by Global Investment House, a company authorized to engage in securities activities in Kuwait. Global
Investment House is not a registered broker-dealer in the United States and, therefore, is not subject to U.S. rules regarding the preparation
of research reports and the independence of research analysts. This research report is provided for distribution to major U.S. institutional
investors in reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended
(the Exchange Act).
Any U.S. recipient of this research report wishing to effect any transaction to buy or sell securities or related financial instruments based on
the information provided in this research report should do so only through Cadwyn Point Partners LLC, 26 Point Road Norwalk, CT 06854,
a registered broker dealer in the United States. Under no circumstances should any recipient of this research report effect any transaction to
buy or sell securities or related financial instruments through Global Investment House. Cadwyn Point Partners LLC accepts responsibility
for the contents of this research report, subject to the terms set out below, to the extent that it is delivered to a U.S. person other than a major
U.S. institutional investor.
The analyst whose name appears in this research report is not registered or qualified as a research analyst with the Financial Industry
Regulatory Authority (FINRA) and may not be an associated person of Cadwyn Point Partners LLC and, therefore, may not be subject to
applicable restrictions under FINRA Rules on communications with a subject company, public appearances and trading securities held by a
research analyst account.

Ownership and Material Conflicts of Interest


Cadwyn Point Partners LLC or its affiliates does not beneficially own, as determined in accordance with Section 13(d) of the Exchange Act,
1% or more of any of the equity securities mentioned in the report. Cadwyn Point Partners LLC, its affiliates and/or their respective officers,
directors or employees may have interests, or long or short positions, and may at any time make purchases or sales as a principal or agent of
the securities referred to herein. Cadwyn Point Partners LLC is not aware of any material conflict of interest as of the date of this publication

Compensation and Investment Banking Activities


Cadwyn Point Partners LLC or any affiliate has not managed or co-managed a public offering of securities for the subject company in the
past 12 months, nor received compensation for investment banking services from the subject company in the past 12 months, neither does it
or any affiliate expect to receive, or intends to seek compensation for investment banking services from the subject company in the next 3
months.

Additional Disclosures
This research report is for distribution only under such circumstances as may be permitted by applicable law. This research report has no
regard to the specific investment objectives, financial situation or particular needs of any specific recipient, even if sent only to a single
recipient. This research report is not guaranteed to be a complete statement or summary of any securities, markets, reports or developments
referred to in this research report. Neither Global Investment House nor any of its directors, officers, employees or agents shall have any
liability, however arising, for any error, inaccuracy or incompleteness of fact or opinion in this research report or lack of care in this research
reports preparation or publication, or any losses or damages which may arise from the use of this research report.
Global Investment House may rely on information barriers, such as Chinese Walls to control the flow of information within the areas, units,
divisions, groups, or affiliates of Global Investment House.
Investing in any non-U.S. securities or related financial instruments (including ADRs) discussed in this research report may present certain
risks. The securities of non-U.S. issuers may not be registered with, or be subject to the regulations of, the U.S. Securities and Exchange
Commission. Information on such non-U.S. securities or related financial instruments may be limited. Foreign companies may not be subject
to audit and reporting standards and regulatory requirements comparable to those in effect within the United States.
The value of any investment or income from any securities or related financial instruments discussed in this research report denominated in a
currency other than U.S. dollars is subject to exchange rate fluctuations that may have a positive or adverse effect on the value of or income
from such securities or related financial instruments.
Past performance is not necessarily a guide to future performance and no representation or warranty, express or implied, is made by Global
Investment House with respect to future performance. Income from investments may fluctuate. The price or value of the investments to
which this research report relates, either directly or indirectly, may fall or rise against the interest of investors. Any recommendation or opinion
contained in this research report may become outdated as a consequence of changes in the environment in which the issuer of the securities
under analysis operates, in addition to changes in the estimates and forecasts, assumptions and valuation methodology used herein.
No part of the content of this research report may be copied, forwarded or duplicated in any form or by any means without the prior consent of
Global Investment House and Global Investment House accepts no liability whatsoever for the actions of third parties in this respect.

June 2014

11

Global Investment House


Website: www.globalinv.net
Global Tower
Sharq, Al-Shuhada Str.
Tel. + (965) 2 295 1000
Fax. + (965) 2 295 1005
P.O. Box: 28807 Safat, 13149 Kuwait

Brokerage
Fouad Fahmi Darwish
(965) 2295-1700
fdarwish@global.com.kw

Wealth Management - Kuwait


Rasha Al-Qenaei
(965) 2295-1380
alqenaei@global.com.kw

Global Kuwait
Tel: (965) 2 295 1000
Fax: (965) 2 295 1005
P.O.Box 28807 Safat, 13149 Kuwait

Global Bahrain
Tel: (973) 17 210011
Fax: (973) 17 210222
P.O.Box 855 Manama, Bahrain

Global Egypt
Tel: (202) 24189705/06
Fax: (202) 22905972
24 Cleopatra St., Heliopolis, Cairo

Global Saudi Arabia


Tel: (966) 1 2994100
Fax: (966) 1 2994199
P.O. Box 66930 Riyadh 11586,
Kingdom of Saudi Arabia

Global UAE
Tel: (971) 4 4477066
Fax: (971) 4 4477067
P.O.Box 121227 Dubai,
UAE
Global Jordan
Tel: (962) 6 5005060
Fax: (962) 6 5005066
P.O.Box 3268 Amman 11180,
Jordan

Global Wealth Manager


E-mail: contactus@global.com.kw
Tel: (965) 1-804-242

Disclaimer
This material was produced by Global Investment House KPSC (Global), a firm regulated by the Central Bank of Kuwait and the Capital Markets Authority
(Kuwait). This document is not to be used or considered as an offer to sell or a solicitation of an offer to buy any securities. Global may, from time to time to
the extent permitted by law, participate or invest in other financing transactions with the issuers of the securities (securities), perform services for or solicit
business from such issuer, and/or have a position or effect transactions in the securities or options thereof. Global may, to the extent permitted by
applicable Kuwaiti law or other applicable laws or regulations, effect transactions in the securities before this material is published to recipients. Information
and opinions contained herein have been compiled or arrived by Global from sources believed to be reliable, but Global has not independently verified the
contents of this document. Accordingly, no representation or warranty, express or implied, is made as to and no reliance should be placed on the fairness,
accuracy, completeness or correctness of the information and opinions contained in this document. Global accepts no liability for any loss arising from the
use of this document or its contents or otherwise arising in connection therewith. This document is not to be relied upon or used in substitution for the
exercise of independent judgment. Global shall have no responsibility or liability whatsoever in respect of any inaccuracy in or omission from this or any
other document prepared by Global for, or sent by Global to any person and any such person shall be responsible for conducting his own investigation and
analysis of the information contained or referred to in this document and of evaluating the merits and risks involved in the securities forming the subject
matter of this or other such document. Opinions and estimates constitute our judgment and are subject to change without prior notice. Past performance is
not indicative of future results. This document does not constitute an offer or invitation to subscribe for or purchase any securities, and neither this
document nor anything contained herein shall form the basis of any contract or commitment whatsoever. It is being furnished to you solely for your
information and may not be reproduced or redistributed to any other person. Neither this report nor any copy hereof may be distributed in any jurisdiction
outside Kuwait where its distribution may be restricted by law. Persons who receive this report should make themselves aware of and adhere to any such
restrictions. By accepting this report you agree to be bound by the foregoing limitations.

You might also like