Kuwait Economic Brief - National Bank of Kuwait

April 2012
Real estate sales strong to start year...
Credit jump in February...Government
spending still lagging
An update of recent developments
in select sectors in Kuwait
published by Economic Research
at NBK
Kuwait Economic Brief

Economic Brief - April 2012
Oil Market...............................................Page 2
Crude prices stable as governments consider
stock release
Consumer Price Inflation......................Page 4
February CPI inflation at 3.8% y/y
Monetary Developments......................Page 5
Credit sees significant gains in February…
portends better credit growth than 2010 and
2011
Public Finance.......................................Page 6
FY 11/12: High oil prices and sluggish spending
to generate a record budget surplus
Kuwait Population & Labor...................Page 7
Kuwaiti employment grows 6% in 2011, for both
the public and private sectors
Kuwait’s crude oil price and production
2.75
125
2.65
120
mn barrels/day
115
2.55
110
2.45
105
2.35
100
2.25
95
Mar-11 Jun-11 Sep-11 Dec-11 Mar-12
Oil Output (left)
Oil Price (right)
monetary indicators
(y/y percent growth)
15
10
dollars per barrel
Real Estate.............................................Page 9
Solid sales activity in February despite holiday,
driven by the residential sector
5
0
Corporate Earnings.............................Page 11
Corporate Earnings down slightly on the year,
challenges remain
-5
Feb-11 May-11 Aug-11 Nov-11 Feb-12
Money Supply (M2)
Credit Facilities
Kuwait Stock Exchange......................Page 15
KSE rally continues in March
share of real estate segments
100%
100%
80%
80%
60%
60%
40%
40%
20%
20%
0%
0%
Feb.11 Apr.11 Jun.11 Aug.11 Oct.11 Dec.11 Feb.12
Commercial Residential Property Apartments (Investment)
KUWAIT STOCK EXCHANGE
50
7000
40
6500
million KD
30
20
6000
index
10
5500
0
Mar-11 Jun-11 Sep-11 Dec-11 Mar-12
5000
Value of Traded Shares (left)
KSE Index (right)
1

Economic Brief - April 2012
Oil Market & Budget Developments
Crude prices stable as governments consider stock
release
• Crude prices were stable through March, with concerns
over the potential loss of Iranian crude mitigated by
speculation over a possible release of international oil
stocks.
• Global oil demand should grow at a moderate pace this
year, affected by high prices. Oil supply growth should be
stronger, thanks partly to rising output in Iraq and Libya.
• An average oil price of $110 pb should have generated
a budget surplus of KD 11 bn for Kuwait in FY11/12. If
oil prices remain high, FY12/13 should see a further large
surplus.
Oil Prices
Oil prices had a steady month in March, holding on to
the gains made in February which saw them reach postfinancial
crisis highs. The price of Kuwait Export Crude
(KEC) began and ended the month at $120 per barrel (pb).
The average price during the month was also $120, the
highest since July 2008. Brent crude, meanwhile, enjoyed
a similarly stable month, holding at around $125. The main
US crude benchmark – West Texas Intermediate (WTI)
– continues to trade at a substantial discount to other
blends, averaging $106 in March.
Two opposing supply-side factors have vied for influence
over oil prices in recent weeks. On the upside, markets
remain pressured by the potential loss of Iranian oil
exports as the July 1st start date for EU embargo on Iran
oil draws nearer. Estimates suggest that Iran could lose up
to 1 million barrels per day (mbpd) of crude, worth around
1% of world output, which would need to be made up by
other producers. Iranian production is estimated to have
already fallen to a 10-year low of 3.4 mbpd this year, as
buyers look to pre-empt supply chain disruption.
On the downside, speculation has intensified over a
possible release of government-controlled strategic oil
stocks to cap further upward pressure on prices. Aside
from questions over the legality and timing of the move,
few analysts expect it would have a lasting impact. Last
summer’s release of 60 million barrels over 2 months
saw prices drop 5% on the announcement, but quickly
recover. This may of course lead to speculation that any
release will need to be bigger this time around.
These two forces are linked and may be offsetting: rising
concerns about supply shortages only generate a stronger
likelihood of an emergency supply release. Note, however,
that futures markets see the price of Brent crude falling to
below $100 pb by the end of 2015. The premium for spot
over futures prices can be partly interpreted as a measure
of current nervousness over the Iranian issue.
Oil demand outlook
Analysts’ Analysts’ expectations for oil demand growth in
2012 were little changed over the past month, the global
economic environment having calmed down somewhat.
Global oil demand growth is seen in the range of 0.8–1.1
mbpd, or 0.9–1.2%, similar to 2011 levels. Demand
growth in non-OECD countries is expected to remain
robust, at up to 1.5 mbpd (3.5%), while demand in
OECD countries may fall by up to 0.4 mbpd (0.7%). If
these trends continue, non-OECD countries will overtake
developed markets as the primary users of oil for the first
time next year. They have already contributed all of the
increase in world oil demand seen over the past decade.
Oil supply outlook
Crude oil output of the OPEC-11 (i.e. excluding Iraq) rose
by a marked 121,000 bpd in February to 28.3 mbpd.
Declines were seen in Kuwait (43,000 bpd), Saudi Arabia
(41,000 bpd) and Iran (37,000 bpd). However, these were
more than offset by a continued recovery in Libyan output
which jumped by 181,000 bpd to 1.2 mbpd, closing in on
its 1.6 mbpd pre-war level.
Total OPEC production (including Iraq) reached 31 mbpd
in February, a level not witnessed since October 2008.
Recent cuts in Saudi production do not reflect a desire for
a tighter market. Indeed, Saudi oil minister Al-Naimi has
made a concerted effort to talk prices down, publically
emphasizing that markets are well supplied, that domestic
production could be lifted to its maximum of 12.5 mbpd
kuwait export crude
(dollars per barrel)
140
130
120
110
100
90
80
4Q11 1Q12 2Q12F 3Q12F 4Q12F 1Q13F
KEC PRICE SCENARIOS
(dollars per barrel)
Scenario
Low Price Base Case High Price
2011 105.4 105.4 105.4
1Q12 116.7 116.7 116.7
FY11/12 109.7 109.7 109.7
2Q12f 116.3 119.7 125.3
3Q12f 105.8 115.7 130.2
4Q12f 89.9 109.5 136.8
2012f 104.9 112.1 122.8
1Q13f 89.9 109.5 136.8
FY12/13f 100.5 113.6 132.3

if needed and that the kingdom stands ready to meet any
supply shortfall arising from the loss of Iranian supplies.
Along with a further recovery in Libyan output, Iraq’s
production could rise in future with the start-up of the new
export facility at Basra.
Non-OPEC supplies are projected to rise by 0.5-0.8 mbpd
in 2012, although more than half of this increase will come
from OPEC natural gas liquids (NGLs). This is only slightly
above last year’s disappointing growth of 0.5 mbpd,
which was held back by a combination of geopolitical
and technical issues. In total, if OPEC-12 output were to
remain at its current level (i.e. assuming that any future
loss in Iranian output is compensated for by other OPEC
members); global oil supplies could rise by up to 2.0
mbpd in 2012. Given higher Libyan and Iraqi production,
however, OPEC output should rise further.
Price projections
Oil supply increases are therefore expected to outpace
demand growth this year, and – despite a tight starting
point – it is conceivable that market fundamentals will
soften. If non-OPEC supply growth comes in at the lower
end of expectations at 0.5 mbpd, and OPEC output
increases on average by 1.6 mbpd in 2012, then – based
upon a consensus-looking increase in demand (0.9%)
– we could see a relatively large stock-build of 0.7 mbpd
this year, following last year’s stock draw. In this case, the
price of KEC could fall steadily in the second half of the
year, though remain high at around $110 pb at year-end.
build-up of global stocks. Such a scenario could result
from the return of South Sudanese output, following
a production shutdown linked to a dispute with North
Sudan. The price of KEC could slide to under $90 pb in
the final quarter of 2012, likely prompting OPEC members
to make deep significant cuts.
Budget projections
The fiscal year 11/12 just ended saw the price of KEC
average $110 pb, up 33% on FY10/11. Although official
figures have not yet been released, we expect oil revenues
of some KD 28 billion, 45% up on the previous year. If
as we expect, spending comes in at 5-10% below the
government’s forecast, last year’s budget surplus could
end up between KD 11.3 billion and KD 12.3 billion before
allocations to the Reserve Fund for Future Generations
(RFFG). This is lower than the KD 16.1 billion surplus
revealed by official figures for the first eleven months of the
year, but the surplus usually declines once late spending
data are included.
The outlook for next year is still unclear, but our projections
are based upon oil prices averaging between $101 and
$132 pb. Press reports show budgeted spending for
FY12/13 of KD 22 billion, although this number could
subsequently be revised. Using our price scenarios, we
project a surplus of between KD 6.5 billion and KD 17.6
billion before allocations to the RFFG.
Alternatively, if oil demand growth proves much stronger
than anticipated (1.3%), oil market fundamentals could
begin to tighten again and prices are likely to rise. In this
scenario, the price of KEC accelerates to above $135 pb
by year-end. However, such high prices would hurt global
economic growth, pressing OPEC members to supply
more oil to the market.
If, on the other hand, non-OPEC supplies turn out to be
0.3 mbpd higher than expected, we could see a rapid
BUDGET FORECAST
(million KD, unless otherwise noted)
Under Alternative Oil Price Scenarios
FY 2011/12 FY 2012/13
Official Low Base High Prelim. Low Base High
Budget Case Case Case Budget Case Case Case
Oil Price ($/barrel) 60.0 109.7 109.7 109.7 65.0 100.5 113.6 132.3
Total Revenues 13,445 29,740 29,740 29,841 13,932 27,408 30,988 37,352
Oil Revenues 12,307 28,140 28,140 28,241 12,768 25,808 29,388 35,752
Non-Oil Revenues 1,138 1,600 1,600 1,600 1,164 1,600 1,600 1,600
Expenditures (official) 19,435 19,435 19,435 19,435 21,960 21,960 21,960 21,960
Surplus (deficit) -5,990 10,305 10,305 10,406 -8,028 5,448 9,028 15,392
After RFFG -7,335 7,331 7,331 7,422 -9,421 2,707 5,929 11,657
Expenditures (NBK estimate) ... 18,463 17,977 17,492 ... 20,862 20,313 19,764
Surplus (deficit), NBK estimate ... 11,277 11,763 12,349 ... 6,546 10,675 17,588
After RFFG ... 8,303 8,789 9,365 ... 3,805 7,576 13,853

Economic Brief - April 2012
Consumer Price Inflation (CPI)
February CPI inflation at 3.8% y/y
Inflation in the Consumer Price Index (CPI) rose to 3.8%
year-on-year (y/y) in February from 3.5% the previous
month. The small rise in the rate was driven in February
by the clothing and education segments, in what appear
to be special or one-time factors (see below). Despite the
small rise, there is little sign of a significant rise in broader
inflationary pressures and we expect inflation to average
4.0% in 2012.
Our ‘core’ CPI measure, which excludes food and
beverage prices, stood at just 2.5% y/y in February
(chart 1). A combination of moderate rates of economic
growth and the lagged effects of a stronger US dollar
(which affects import prices) have helped to keep inflation
pressures in check.
Food prices were little changed on the month (some
subcomponents saw m/m declines), though inflation in
food prices edged up to 8.6% y/y in February (chart 2).
International food prices have come down from their 2011
highs, which should translate into a deceleration in Kuwaiti
food price inflation over coming months.
Footwear prices jumped 3.2% in the month, and pressured
inflation in the clothing and footwear segment which
accelerated to 4.9% y/y (footwear makes up make up 16%
of this component). Prices in the education and medical
care segment jumped 2.1% on the month, primarily driven
by an 18% jump in tuition at English schools. The latter is
Consumer price inflation, % y/y
unusual and is likely due to a one-time factor or to some
oddity in the data for that item.
Inflation in the household goods and services segment
slowed to 1.4% y/y (chart 3), the lowest among all index
components. Another source of downward pressure was
transportation and communication, which nudged down
to 2.6% y/y in February.
Overall, CPI inflation appears in check, with prices in the
categories other than food and clothing all running at
under 3.0% y/y.
CONSUMER PRICE INFLATION - MONTHLY 2011
Index
weight
% m/m % y/y
% Dec Jan Feb Dec Jan Feb
Food 18.3 1.1 0.4 0.1 6.7 8.1 8.6
Beverages and tobacco 0.7 0.0 0.0 0.1 0.4 3.6 7.2
Clothing and footwear 8.9 0.1 -0.1 1.4 2.1 3.2 4.9
Housing services 26.8 0.8 0.0 0.0 2.0 2.0 2.0
Household goods & services 14.7 0.2 0.1 -0.4 1.9 1.8 1.4
Transport & Communication 16.1 0.1 0.1 0.0 2.9 2.7 2.6
Education & medical care 4.7 -1.8 0.1 2.1 0.8 0.9 2.8
Other goods and services 9.9 0.3 0.1 0.1 2.6 2.8 2.8
Core Index 1 81.0 0.3 0.0 0.2 2.1 2.2 2.5
General Index 100.0 0.5 0.1 0.2 3.1 3.5 3.8
Source: CSO/NBK
1
excludes food, beverages and tobacco
Household goods & serv. apparel inflation, %y/y
7
7
7
7
6
6
6
6
5
5
5
5
4
4
4
4
3
3
3
3
2
2
2
2
1
1
1
1
0
0
May-10 Aug-10 Nov-10 Feb-11 May-11 Aug-11 Nov-11 Feb-12
CPI
CPI Core (excl Food and Bev)
0
0
May-10 Aug-10 Nov-10 Feb-11 May-11 Aug-11 Nov-11 Feb-12
CPI clothing & footwear
CPI household goods & Serv.
food & Housing inflation, % y/y
cpi components, %y/y
14
14
10
10
12
12
8
8
10
10
8
8
6
6
6
6
4
4
4
4
2
2
2
2
0
May-10 Aug-10 Nov-10 Feb-11 May-11 Aug-11 Nov-11 Feb-12
CPI Food
CPI Housing
0
0
Food Bev & Clothing H'sing
Tob
serv
Feb 2012
CPI
Q4 2011 Avg
H'hold
G&S
Tran &
com
Edu &
Med
Other
G&S
Source: Ministry of Planning / NBK
0

Monetary Developments
Credit sees significant gains in February…portends
better credit growth than 2010 and 2011
Total credit was up KD 242 mn in February, its strongest
monthly gain since September 2009. While household
credit continued to show steady growth, February saw
some good activity in other sectors as well.
Money supply (M1) was up in February (+KD 152 mn).
The broader measure of money (M2) was up a stronger
KD 286 mn. Despite the large monthly gain in money
supply, year-on-year (y/y) growth in M1 and M2 slowed in
February to 6.7% and 4.7%, respectively, due to a strong
jump in money in the same period last year. Money supply
had expanded KD 1.6 billion in February 2011 following
the payment of the Amiri grant.
million. The sector is up 3% y/y in what seems to reflect
improved real estate activity in Kuwait.
Resident deposits were up a strong KD 283 million mostly
in local currency deposits. The increases were exclusively
in sight and saving deposits. Average rates offered on
private KD deposits remained unchanged across all
maturities in February. Rates on maturities of one, three,
six and 12 months averaged 0.81%, 1.04%, 1.30%, and
1.54%, respectively.
Total bank assets were up a hefty KD 620 million in
February. Apart from the increase in credit facilities,
banks’ liquid and foreign assets increased noticeably in
February.
The remarkable increase in credit came despite the KD
40 million decline in loans extended to non- bank financial
institutions. Almost all other sectors saw good gains in
February. Personal facilities (ex-securities) were up another
KD 42 million. The sector’s monthly gains averaged KD 60
million in the last 3 months.
February’s gains were led mostly by increases in “other
business credit” (services, telecom, transportation etc.)
and personal facilities extended for the purchase of
securities, each rising by KD 93 million. Meanwhile,
outstanding loans to real estate were up a good KD 41
monetary indicators
(year-on-year percent growth)
12
10
8
6
4
2
0
-2
Feb-10 Jun-10 Oct-10 Feb-11 Jun-11 Oct-11 Feb-12
Money Supply (M2)
Credit Facilities
KD Resident Deposits
MONETARY HIGHLIGHTS - FEBRUARY 2012
Change
Feb 2012 mom 3-mnth yoy
mn KD % % %
exchange rates
0.32
0.31
0.45
0.43
Local Bank Assets 44,608 1.4 2.6 4.8
of which:
Claims on Government 1,901 0.0 0.9 1.2
Credit to Residents 25,838 0.9 1.0 2.4
Foreign Assets 8,363 1.6 6.8 14.0
Money Supply (M2) 28,143 1.0 1.3 4.3
Private Deposits 27,144 1.1 1.4 4.7
KD Sight Deposits 5,837 2.6 6.8 9.2
KD Savings Deposits 3,994 2.9 5.4 17.1
KD Time Deposits & CDs 15,061 -0.1 -0.6 1.0
FC Deposits 2,252 1.7 -5.0 0.2
0.30
0.41
0.29
0.39
0.28
0.37
0.27
0.35
0.26
0.33
Mar-10 Jun-10 Sep-10 Jan-11 Apr-11 Aug-11 Nov-11 Mar-12
Dinar/Dollar (LHS)
Dinar/Euro (RHS)

Economic Brief - April 2012
Public Finance
FY 11/12: High oil prices and sluggish spending to
generate a record budget surplus
Kuwait’s public finances data for February, the 11th month
of fiscal year 2011/12, show a year-on-year (y/y) decline
in government spending. This is largely due to last year’s
one-time Amiri grant, which was disbursed in February
2011. Government revenues, however, continue to grow
strongly due to high oil prices. This will likely result in a
record budget surplus for the year, which would be the
country’s 13th surplus in a row.
Total government spending reached KD 10.8 billion in
the first 11 months, a small 1% decline compared to the
same period of the previous year. Admittedly, this was
skewed by the impact of the Amiri grant –without which
spending would have increased 10% y/y. Nevertheless,
the underlying spending pace is still disappointing. For
the 11 months period of FY 2011/12, 56% of budget had
been spent, compared to 64% for the historic average in
the comparable period.
Current spending was almost unchanged y/y, standing
at KD 9.7 billion. A KD 449 million increase in wages
and salaries spending was offset by a decrease in
miscellaneous expenditures and transfers. The decrease
in the latter was due to the Amiri grant mentioned above.
Current spending was 59% of the full year budget, also
below its historic average of 68% (for the 11-month
period).
Capital spending was down 14% y/y, reaching KD 1 billion,
11 months in. Spending in this category is still lagging at
38% of budget, compared to a 43% historic average (chart
1). The capital-spending pace was projected to pickup, as
this is the second year of the development plan and more
projects should have materialized. The expected increase
may still be realized, but not until the closing figures for the
fiscal year are released.
Demand-impacting spending* – our estimate of spending
that drives domestic demand – stood at KD 6.6 billion
through the first 11 months, down 9% y/y due to the same
above-mentioned “basis effect”.
Total revenues were KD 26.8 billion, up 44% y/y. High
oil prices have buoyed revenues for FY 2011/12 as the
average oil price for the 11-month period was almost
$109 pb, up 36% y/y. Oil revenues accounted for 95% of
total revenues 11 months into the fiscal year.
Non-oil revenues reached KD 1.4 billion, up 20% y/y. The
increase originated from miscellaneous revenues and fees,
which is likely related to compensation payments from the
United Nations Compensation Commission (UNCC).
Capital Spending
(actual spending % of full year budget)
70
60
50
40
30
20
10
0
Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar
5 year historical average
FY 11/12 FY 10/11
70
60
50
40
30
20
10
0
11 months into FY 2011/12, Kuwait’s budget surplus
stood at KD 16 billion (36% of 2011 GDP). We maintain
our view that the final figure is likely to be smaller, as
spending typically accelerates late in the year. We forecast
a KD 11-12 billion surplus for FY2011/12 (chart 3), which
would still be 22% of GDP.
Note: * Excludes items such as transfers to Public Institute
for Social Security, transfers abroad, spending on military
procurement, fuel costs and subsidies, and housing loan
forgiveness.
REVENUES & EXPENDITURES - 11 MONTHS (TO FEBRUARY) FY2011/12
11 mos: Actual to
Levels Change 1 Y/Y Budget (%)
mn KD mn KD % FY11/12 Average 2
Total Revenues 26,893 8,225 44.1 200.0 184.7
Oil Revenues 25,478 7,999 45.8 207.0 195.2
Non-Oil Revenues 1,414 226 19.0 124.3 102.3
Total Expenditures 10,823 -149 -1.4 55.7 63.9
Current Expenditures 9,748 26 0.3 58.7 67.5
Wages & Salaries 2,509 449 21.8 56.7 58.2
Goods & Services 1,757 125 7.6 57.9 60.9
Misc. Exp. & Transfers 5,482 -548 -9.1 59.9 73.4
Capital Expenditures 1,075 -175 -14.0 38.2 43.1
Vehicles & equipment 69 -8 -10.0 18.0 28.3
Projects, maint. & land purchases 1,006 -167 -14.3 41.4 45.2
Surplus (deficit) 16,070 8,347 ... ... ...
Demand Impacting Expenditures 6,609 -636 -8.8 50.2 58.6
1
Change from comparable period year ago
2
Average for comparable period, last 5 years

Kuwait Population & Labor Force
Kuwaiti employment grows 6% in 2011, for both the
public and private sectors
Kuwait’s total population reached 3.69 million at the end
of December 2011 according to figures published by the
Public Authority for Civil Information (PACI). The population
grew by 3.2% from a year ago. The number of Kuwaiti
nationals reached nearly 1.18 million, or 32% of the total
population. Growth was slightly higher than in recent
years, as the population grew at an annual average of
2.9% in the previous five years. The expatriate population
represented 68% of Kuwait’s population at the end of
2011. Their numbers increased by roughly 80 thousand
(3.3%) over the previous year, in part reflecting a pick up
in economic activity. Growth in the expatriate population
peaked four years ago at 8.6% before dropping to around
0.5% during 2008 and 2009. It has since recovered to a
more moderate pace.
Kuwait’s total labor force grew by 3.2% in 2011 to reach
2.18 million. Growth among Kuwaiti nationals was strong,
exceeding 6% year-on-year. For expatriates, the numbers
were up in both the public and private sectors, though
they fell for domestic workers. Growth for expat workers
was slower at 3.4%.
The number of employed Kuwaitis at the end of 2011
rose by over 21,500, better than the 16,200 gain in the
previous year. Seventeen thousand of the new jobs were
in the public sector, roughly twice the increase in public
sector employment of Kuwaitis a year ago.
Of the new jobs for Kuwaitis, 21% were in the private
sector, keeping the public/private shares little changed
from previous years. New employment in the private
sector among Kuwaiti nationals in 2011 was 4,400. About
half of the new jobs in this sector went to women. The
number of Kuwaitis employed in the private sector rose
to 80 thousand.
For Kuwaitis employed in the public sector, growth
accelerated during 2011 as the government created the
most jobs in more than a decade. The public sector added
more than 17 thousand jobs for nationals in 2011. In fact,
the number of Kuwaitis entrants to the public sector nearly
doubled compared to 2010. There were over 17,000 new
public sector employees compared to 8,800 during the
same period a year before; that figure was the highest
ever. The strong employment performance for Kuwaitis in
the public sector was likely encouraged by the approval
of salary hikes in the government sector that are perhaps
luring some workers from the private sector. The public
sector added 5,500 expatriate jobs, somewhat stronger
than the previous two years.
Since 2000, the share of women of the Kuwaiti work
force has steadily increased, from 35% to nearly 46%.
These gains are in part linked to women’s educational
achievements. As much as 61% of women aged 25
and older have received a diploma or a higher degree,
compared with 39% of men.
Growth in Kuwait’s population, %
kuwaiti women’s share in public & Private sector
10
6
60
60
8
5
50
50
40
40
6
4
30
30
4
3
20
20
2
2
10
10
0
0
0
2007 2008 2009 2010 2011
1
Dec-
00
Dec-
01
Dec-
02
Dec-
03
Dec-
04
Dec-
05
Dec-
06
Dec-
07
Dec-
08
Dec-
09
Dec-
10
Dec-
11
Kuwaitis (RHS) Total (LHS) Non-Kuwaitis (LHS)
Public Sector Private Sector
POPULATION
Shares of Kuwaiti labor force
Population (‘000)
Percent Growth
80
50
Kuwaiti
Non-
Kuwaiti
Total
Kuwaiti
Non-
Kuwaiti
Total
70
45
60
40
2006 1,023 2,159.6 3,183.0 3.1 8.0 6.4
2007 1,055 2,345.0 3,399.6 3.1 8.6 6.8
50
35
2008 1,088 2,354.3 3,441.8 3.1 0.4 1.2
40
30
2009 1,119 2,366.0 3,484.9 2.9 0.5 1.3
2010 1,148 2,433.7 3,582.1 2.6 2.9 2.8
30
25
2011 1,183 2,514.1 3,697.3 3.0 3.3 3.2
Source: Public Authority for Civil Information (www.paci.gov.kw).
20
Dec-
00
Dec-
01
Dec-
02
Dec-
03
Dec-
04
Dec-
05
Dec-
06
Dec-
07
Dec-
08
Dec-
09
Dec-
10
Dec-
11
20
Men Women

Economic Brief - April 2012
In the public sector, the proportion of Kuwaiti women has
risen from 41% in 2005 to 45% at the end of December
2011. While the gain in this sector has been gradual,
the private sector has seen a far more dramatic shift
in women’s participation. The proportion of women
employees in the private sector has risen from 39% to
51% over the last five years.
The net change in the expatriate labor force (excluding
domestic workers) reached 48,700 at the end of 2011.
Public sector hiring of non-Kuwaitis was a relatively small
5,400 while the private sector hired 43,200.
Kuwaiti empt., public & pvt. as share of total, %
100
35
90
30
80
25
70
20
60
50
15
40
10
30
5
Dec-
02
Dec-
03
Dec-
04
Dec-
05
Dec-
06
Dec-
07
Dec-
08
Dec-
09
Dec-
10
Dec-
11
Public Sector (LHS) Private Sector (RHS)
LABOR FORCE BY SECTOR
(in thousands)
Kuwaiti Non-Kuwaiti
Public
Sector
Private
Sector
Total
Public
Sector
Private
Sector
Domestic
Sector
Total
2005 276.1 31.9 308.0 93.4 911.4 478.7 1,483.4
2006 285.3 42.3 327.5 96.9 1,010.5 501.0 1,608.4
2007 255.3 49.1 304.4 103.7 1,104.5 544.3 1,752.5
2008 262.7 57.0 319.7 111.8 1,120.6 501.1 1,733.5
2009 270.6 68.2 338.8 114.8 1,086.0 519.3 1,720.1
2010 279.4 75.6 355.0 118.9 1,070.0 569.5 1,758.5
2011 296.5 80.1 376.6 124.4 1,113.3 566.9 1,804.6
Source: Public Authority for Civil Information (www.paci.gov.kw).

Real Estate
Solid sales activity in February despite holiday, driven
by the residential sector
Sales activity was strong in February, totaling KD 255
million in value, an 18% increase year-on-year (y/y). The
residential sector sales continue to be the main driving
force, taking up 58% of total transactions value.
Residential sector sales were KD 147.3 million for February,
a KD 56 million y/y jump. In line with January, the reason
behind the increase was the high number of transactions
concluded, totaling 722 transactions in February. In terms
of value, almost two thirds of the transactions went
into buying plots of land, with the remaining third going
into purchasing homes. Ahmadi and Mubarak Alkabeer
governorates saw the most activity in plot purchases
(43% and 29% of total plot sales respectively). Residential
sales should continue to do well in the near future, as they
appear backed by solid demand.
The investment sector (mainly apartments and buildings
intended for rental), saw KD 97.4 million in sales during
February. Sales for the month were mostly split between
purchasing buildings, plots, and complexes (46, 31, and
19% of total sales respectively). Buildings were mostly
purchased in the Hawalli governorate, while Ahmadi and
Mubarak Alkabeer governorates saw the bulk of activity
in plot and complex purchases. Total sales for February
were actually a 21% drop y/y, but still strong compared to
a monthly average of KD 58 million (past 3 years). Thus
the drop should not be an indication of a larger trend, as
February saw fewer available days for transacting (national
holiday).
The commercial sector recorded 5 transactions in February.
They totaled KD 10.4 million in value, an increase of KD
7.2 million from last February. Month-to-month volatility in
both monetary value and the number of transactions is
common in this sector.
The Savings and Credit Bank (SCB) approved 313 housing
loans, totaling KD 17.7 million. Of these loans, the majority
(75%) will go to financing new housing construction (as
opposed to purchasing existing homes), further indicating
healthy demand in the residential sector. Additionally, KD
9.0 million loans were disbursed by the SCB, a 23% y/y
increase.
February somewhat continued the previous month’s
strong start in the real estate sector, despite having fewer
days of activity. The pick-up in activity should continue
throughout the year, perhaps with varied momentum.
Residential real estate
Commercial real estate
260
620
80
16
220
540
70
14
60
12
180
460
50
10
140
380
40
8
100
300
30
6
20
4
60
220
10
2
20
140
Aug-09 Jan-10 Jun-10 Nov-10 Apr-11 Sep-11 Feb-12
Sales (KD mn, LHS)
Avg. transaction size (KD 000s, RHS)
0
0
Aug-09 Jan-10 Jun-10 Nov-10 Apr-11 Sep-11 Feb-12
Sales (KDmn, LHS)
Avg. transaction size (KD 000s, RHS)
investment real estate (apts & bldgs)
140
120
1,400
1,200
100
1,000
80
800
60
600
40
400
20
200
Aug-09 Jan-10 Jun-10 Nov-10 Apr-11 Sep-11 Feb-12
Sales (KD mn, LHS)
Avg. transaction size (KD 000s, RHS)
SCB loan approvals
650
300
600
250
550
200
500
450
150
400
100
350
50
300
0
250
200
-50
150
-100
2009 2010 2011 2012
Number of loans (LHS)
KD value of loans (% y/y, RHS)

Economic Brief - April 2012
REAL ESTATE SALES & SCB HOUSING LOANS
Monthly Avg. Dec Jan Feb % %
Real Estate Sales 2010 2011 2011 2012 2012 M/M Y/Y
Sales Values (mn KD) 166.1 224.6 160.8 318.1 255.0 -19.8 17.5
Residential Property 91.7 121.1 87.5 170.3 147.3 -13.5 61.4
Apartments 54.4 82.9 61.3 127.3 97.4 -23.5 -20.6
Commercial 20.0 20.5 12.0 20.5 10.4 -49.5 227.7
Number of Transactions 561 625 593 980 830 -15.3 103.9
Residential Property 425 494 486 806 722 -10.4 149.0
Apartments 130 124 103 166 103 -38.0 -8.8
Commercial 6 7 4 8 5 -37.5 25.0
Average Transaction Size (000 KD) 302.2 369.7 271.2 324.6 307.2 -5.4 -42.4
Residential Property 215.8 250.8 180.0 211.3 204.0 -3.5 -35.2
Apartments 437.4 685.6 595.6 766.8 945.3 23.3 -12.9
Commercial 3295.2 2809.2 3000.8 2560.8 2070.0 -19.2 162.2
Monthly Avg. Dec Jan Feb % %
SCB Housing Loans 2010 2011 2011 2012 2012 M/M Y/Y
Value of Approved Loans (mn KD) 7.8 9.8 12.2 16.2 17.7 8.9 140.3
New Construction 2.3 4.9 6.7 9.6 13.2 36.9 521.2
Purchase of Existing Homes 3.9 3.1 3.2 5.0 3.0 -39.8 -9.9
Additions & Renovations 1.6 1.8 2.3 1.6 1.5 -8.0 -22.3
Number of Approved Loans 265 220 264 298 313 5.0 57.3
New Construction 44 75 99 141 194 37.6 454.3
Purchase of Existing Homes 83 61 59 84 57 -32.1 -18.6
Additions & Renovations 138 85 106 73 62 -15.1 -34.0
Value of Disbursed Loans (mn KD) 11.4 8.3 10.1 10.9 9.0 -17.6 23.0
New Construction 5.9 4.3 5.0 6.7 4.8 -29.0 27.5
Purchase of Existing Homes 3.7 2.5 3.2 2.5 2.4 -4.3 9.1
Additions & Renovations 1.7 1.5 1.9 1.7 1.8 7.4 33.4
Source: Ministry of Justice and the Savings and Credit Bank
10

Corporate Earnings
Corporate Earnings down slightly on the year,
challenges remain
The reported earnings of 166 companies listed on the
Kuwait Stock Exchange (KSE) totaled KD 1.4 billion for the
full year 2011. For the sake of comparison, throughout our
analysis, we have excluded Zain and Wataniya Telecom’s
non-recurring gains* of 1H2010 and 1H2011 respectively.
After making these adjustments, the combined company
earnings were off slightly (-1.7%) compared to 2010,
reflecting further challenges in the operating environment.
Non-Kuwaiti companies saw the strongest growth in
earnings in 2011 followed by the services sector where
earnings grew 20%. All remaining sectors reported lower
earnings in 2011 compared to 2010, including the banking
sector. At KD 565 million, bank profits were down 1.7%
on the year. This was despite a noticeable increase in their
pre-provision income (+11%). Provisions were up 30% in
2011 and together with stagnant credit growth during the
year weighed down banks’ profitability.
Investment companies, after seeing some improvement
in earnings in 2010, went back into negative territory.
2011 was a bad year for stock markets worldwide and
especially for the Kuwait stock exchange (KSE) which fell
16%. Investment portfolios were hit by significant losses
as a result. It is worth noting here that out of the 47 listed
investment companies; only half announced their earnings
and therefore actual sector losses are likely well above the
reported figure (KD 37 million).
Out of the 166 companies that reported their 2011 results,
57 companies incurred losses. Wataniya Telecom was
the top performer in 2011 with KD 362 million (including
its one-time gain), followed by National Bank of Kuwait
(NBK) and Zain with KD 302 million and KD 285 million
respectively. On the worst performers side, National Real
Estate and The Sultan Center topped the list with KD 41
million and KD 38 million in losses respectively.
Note: * Zain’s sale of African assets and Wataniya’s asset
revaluation.
CORPORATE Earnings history & GROWTH
(million KD)
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
-500 YR06 YR07 YR08 YR09 YR10 YR11
Net Profits Net profits excluding Zain and Wataniya's non-recurring profit
SECTOR PERFORMANCE
(million KD)
Net Profits
2011 2010
Growth %
Banking 565 575 -1.7
Investment -37 78 ...
Insurance 19 22 -11.3
Real Estate -44 -33 ...
Industrial 47 85 -44.9
Services 439 367 19.6
Food 48 55 -12.2
Non-Kuwaiti Companies 91 -1 ...
Total Market 1,128 1,148 -1.7
Kuwaiti Companies 1,037 1,148 -9.7
COMPANY PROFITS - 2011
Highest Earnings
million KD
1. National Mobile Telecommunications 362.1
2. National Bank of Kuwait 302.4
3. Zain 284.9
4. Ahli United Bank 85.7
5. Kuwait Finance House 80.3
Lowest Earnings
million KD
1. National Real Estate -40.9
2. The Sultan Center -38.0
3. Al-Mal Investment -31.0
4. National Industries -28.8
5. National Investments -27.3
11

Economic Brief - April 2012
CORPORATE EARNINGS - 2011
(thousand KD)
Code Company Name Full Year Growth Second Half Growth
2011 2010 % 2011 2010 %
Banking
101 National Bank of Kuwait 302,406 301,686 0 156,452 155,745 0
102 Gulf Bank 30,620 19,059 61 17,077 12,308 39
103 Commercial Bank 810 40,452 -98 39,562 -722 …
104 Al-Ahli Bank 50,336 53,178 -5 26,943 21,892 23
105 Ahli United Bank 31,544 27,444 15 14,699 12,412 18
106 Kuwait International Bank 10,841 16,754 -35 11,728 5,356 119
107 Burgan Bank 50,562 4,655 986 11,888 25,285 -53
108 Kuwait Finance House 80,342 105,983 -24 35,185 34,873 1
109 Boubyan Bank 8,025 6,110 31 3,086 3,622 -15
Investment
201 Kuwait Investment Co. 3,548 -3,053 … -8,365 356 …
202 Commercial Facilities 14,190 17,142 -17 7,152 8,361 -14
203 International Financial Advisors … -18,261 … -6,573 … …
204 National Investments -27,316 4,426 … -1,739 -31,238 …
205 Kuwait Projects Company (Holding) 30,038 45,027 -33 40,813 13,479 203
206 Al-Ahlia Investment … -21,858 … -17,075 … …
207 Coast Investment & Development … 5,800 … 6,653 … …
208 The International Investor … … … … … …
209 Securities House … … … … … …
210 Industrial & Financial Investments … … … … … …
211 Securities Group … … … … … …
212 International Finance Co. … -6,772 … … … …
213 Kuwait Financial Centre -356 8,123 … 6,675 -1,106 …
214 KMEFIC -11,839 -8,912 … -5,379 … …
216 Aref Investment Group … … … … … …
218 Al-Aman Investment … -8,136 … -9,599 … …
219 First Investment Co. 2,066 -10,540 … -7,459 … …
220 Al-Mal Investment -31,015 12,017 … 15,949 -22,096 …
221 Gulf Investment House … … … … … …
222 A’ayan Leasing & Investment Co. … … … … … …
223 Bayan Investment Co. -5,367 -5,367 … 2,302 999 130
224 Global Investment House … -73,206 … -38,778 … …
225 Osoul Leasing & Investment Co. 178 178 0 647 -32 …
227 Kuwait Finance & Investments Co. … … … … … …
228 KIPCO Asset Management Co. -6,049 1,820 … 496 -6,493 …
231 National International Co. (Holding) -309 -7,056 … -6,296 -703 …
232 Housing Finance … … … … … …
233 Al Madar Finance & Investment … … … … … …
234 Al-Deera Holding Co. -16,541 -12,976 … -3,925 -13,244 …
235 Al Safat Investment … … … … … …
236 Al Salam Group Holding Company 4,048 -2,366 … -1,683 4,069 …
237 EKTTITAB Holding Company -2,924 -5,933 … -1,675 -20 …
238 Al Qurain Holding Company … 559 … 1,759 … …
239 Sokouk Holding … … … … … …
240 Al Madina for Finance & Investment … -8,243 … -4,598 … …
241 Noor Financial Investment … … … … … …
242 Al Tamdeen Investment 3,124 3,440 -9 83 377 -78
243 Kuwait Bahrain International Exchange 585 662 -12 256 359 -29
244 DAMAC Kuwaiti Holding 1,268 -2,765 … 915 -1,210 …
245 KUWAIT SYRIAN HOLDING -2,266 437 … -28 -1,425 …
246 Strategia Investment co. 20 -1,852 … … … …
247 Kuwait China Investment Co. -9,854 4,689 … 5,735 -10,911 …
248 Manafae Investment Co. -2,727 -941 … -463 -2,075 …
249 Gulf North Africa Holding Co. -2,460 285 … -119 -2,272 …
250 Amwal International Investment Co. … … … … … …
251 Al-Masar Leasing & Investment Co. K.S.C … … … … … …
252 Al-Imtiaz Investment Co 22,722 41,315 -45 … 3,561 …
Insurance
301 Kuwait Insurance 4,350 3,897 12 1,007 1,849 -46
302 Gulf Insurance 7,115 7,692 -8 3,486 3,011 16
303 Al-Ahlia Insurance 7,573 8,275 -8 3,277 … …
304 Warba Insurance 1,062 2,580 -59 770 -310 …
305 Kuwait Re-Insurance 383 1,462 -74 -2,376 836 …
306 First Takaful Insurance -1,295 -1,418 … -647 -1,175 …
307 Wethaq Takaful Insurance Co. 0 -866 … 221 -27 …
Real Estate
401 Kuwait Real Estate 1,009 -20,712 … -22,128 991 …
402 United Real Estate 10,109 5,553 82 3,000 5,032 -40
403 National Real Estate -40,853 -34,449 … -42,849 -42,681 …
12

CORPORATE EARNINGS - 2011
(thousand KD)
Code Company Name Full Year Growth Second Half Growth
2011 2010 % 2011 2010 %
404 Salhia Real Estate 7,174 10,204 -30 3,687 3,610 2
405 Pearl of Kuwait Real Estate … 57 … … … …
406 Al-Tamdeen Real Estate 3,824 4,625 -17 956 731 31
408 Ajyal Real Estate Entertainment Co. -3,084 -11,025 … -10,313 -2,110 …
409 Al-Massaleh Real Estate Co. 2,231 2,376 -6 1,824 -625 …
410 Arab Real Estate -2,283 484 … 1,156 850 36
411 Union Real Estate 1,459 1,309 11 582 717 -19
412 Enma’a Real Estate 1,102 674 … 177 128 38
413 Mabanee Co. 20,780 18,670 11 8,276 9,159 -10
414 Injazzat Real Estate Development -4,837 1,300 … 1,290 -4,877 …
416 Investors Holding Group … -19,880 … -19,510 … …
417 International Resorts Co. -2,628 -2,513 … -1,474 -1,631 …
418 Commercial Real Estate Co. 10,526 5,551 90 1,339 -247 …
419 Sanam Real Estate Co. -2,505 -6,164 … -6,244 -2,375 …
420 A’ayan Real Estate Co. 67 1,858 -96 1,094 709 54
421 Aqar Real Estate -1,894 119 … 77 -1,270 …
422 Kuwait Real Estate Holding -9,996 -4,173 … -3,531 -8,701 …
423 Al Mazaya Holding -15,842 9,629 … 7,064 -12,710 …
424 Al Dar National Real Estate 76 129 -42 2,893 … …
425 Al-Themar International Holding … … … … … …
426 Grand Real Estate Projects … … … … … …
427 Tijara & Real Estate Investment -5,952 -2,645 … -2,223 -6,662 …
428 Tameer Real Estate Investment -275 96 … -654 15 …
429 Arkan Al-Kuwait Real Estate 1,362 -2,274 … -627 77 …
431 Al-Argan International Real Estate 5,300 3,983 33 209 940 -78
432 Abyarr Real Estate Development Co. 257 -4,997 … -2,582 -1,412 …
433 Munshaat Real Estate Projects Co. … … … … … …
434 First Dubai For Real Estate Development -15,118 -21,763 … -20,456 … …
435 Kuwait Business Town real estate … 351 … 2,784 … …
436 Manazel Holding Co. -11,245 -4,912 … -3,703 … …
437 Real Estate Asset Managemnet Co - Ream 521 547 -5 185 124 50
438 Mena Real Estate Co. … … … … … …
439 Al Mudon International Real Estate 50 310 -84 277 -897 …
440 Real Estate Trade Centers -241 5,454 … 4,115 52 7,778
441 Kuwait Remal Real Estate 6,731 9,521 -29 … … …
Industrial
501 National Industries -28,757 -19,200 … -12,234 -37,470 …
502 Kwt Pipes Industries & Oil Services … 387 … 1,082 … …
503 Kuwait Cement 14,266 13,358 7 4,547 5,579 -18
504 Refrigeration Industries -3,558 1,067 … 728 … …
505 Gulf Cable & Electrical Industries 36,300 26,403 … 4,333 3,880 12
506 Heavy Engineering Ind. & Shipbuilding 3,626 4,837 -25 3,096 689 350
507 Contracting & Marine Services 1,660 2,034 -18 493 1,212 -59
508 Kuwait Portland Cement 2,538 22,289 -89 11,187 1,430 683
509 Shuaiba Paper Products 1,003 1,200 -16 420 507 -17
510 Metal & Recycling -216 -496 … -552 -422 …
511 Kuwait Foundry -3,313 5,872 … 2,783 -4,859 …
512 Aerated Concrete Industries 1,909 3,784 -50 -694 432 …
513 United Industries 1,210 4,045 -70 -749 269 …
514 Boubyan Petrochemical Co. … … … … … …
515 Gulf Glass Manufacturing 2,547 2,939 … 1,570 1,431 10
516 Al-Hilal Cement 1,219 715 70 121 410 -71
517 Al Kout Industrial Projects Co. 3,681 2,746 … 1,137 1,734 -34
518 Kuwait Packaging Materials Manufac. 2,236 965 132 297 1,659 -82
519 Kuwait Building Materials Manufac. 183 194 … 60 64 -7
520 National Industries Co. for Bldg. 4,236 4,082 4 -91 1,120 …
522 Equipment Holding -1,009 484 … -378 -1,324 …
523 Mena Holding … … … … … …
524 National Co. for Consumer Industries -1,663 -516 … -489 -1,077 …
525 Kuwait Gypsum Manuf. & Trading 203 434 -53 194 119 63
526 Qurain Petrochemical Industries … -1,902 … -3,546 … …
527 Salbookh Trading Co. … -2,034 … -1,309 … …
528 IKARUS Petroleum Industries 8,412 4,400 91 1,119 1,881 -41
529 Boubyan International Industries Holding 200 3,570 -94 3,152 2,339 35
Services
601 Kuwait Cinema 5,385 5,017 7 1,772 1,932 -8
602 Kuwait Hotels -661 -2,671 … -3,245 -677 …
603 Agility 27,043 25,108 8 -10,572 11,513 …
604 Kuwait Commercial Markets Complex … -5,754 … -2,067 … …
605 Zain Kuwait 284,866 1,062,806 -73 167,481 144,688 16
606 Al Safat Energy Holding Company -11,470 -4,375 … -2,797 -10,406 …
607 Educational Holding Group 458 -6,054 … -2,629 -37 …
13

Economic Brief - April 2012
CORPORATE EARNINGS - 2011
(thousand KD)
Code Company Name Full Year Growth Second Half Growth
2011 2010 % 2011 2010 %
608 Independent Petroleum Group -6,058 4,485 … 2,271 -6,928 …
609 National Cleaning Co. 1,612 1,379 17 506 864 -41
610 The Sultan Center -37,989 -34,435 … -37,803 -34,066 …
611 Al-Arabi Holding 1,608 815 97 154 1,342 -89
612 City Group Company -5,496 1,260 … 302 -6,157 …
613 Wataniya 362,125 78,020 364 42,166 53,648 -21
614 Kuwait & Gulf Link Transport Co. -9,521 -4,439 … -7,487 -988 …
615 Kuwait Cable Vision -1,304 -2,825 … -1,893 -368 …
616 Automated Systems Co. 542 524 3 145 119 22
617 National Petroleum Services Co. 2,338 1,589 47 885 738 20
618 Kuwait Co. For Process Plant Cons.& Cont. 1,844 950 94 864 986 -12
619 Kuwait Slaughter House 618 484 28 246 244 1
620 EYAS for Higher & Technical Education 3,111 2,334 33 1,266 96 1,215
621 Nibras Holding Co 219 203 8 73 176 -59
622 Al Safwa Group -21,958 -17,668 … -13,221 -15,966 …
623 Human Soft Holding 2,390 221 981 524 1,964 -73
624 Kuwait Privatization Project Holding 4,170 1,996 109 1,290 -179 …
625 Nafais Holding Company 1,639 -8,603 … -931 … …
626 National Slaughter House 447 247 81 162 255 -36
627 Aref Energy Holding -5,114 10,798 … -1,077 -4,489 …
628 Safwan Trading & Contracting 2,059 1,838 12 882 967 -9
629 Gulf Petroleum Investment 1,408 -699 … -1,037 -341 …
630 Gulf Franchising -1,538 -1,892 … -1,118 -833 …
631 Credit Rating and Collection -1,989 -157 … -172 -1,877 …
632 National Ranges Co. … … … … … …
633 Burgan Co. for Well Drilling … … … … … …
634 IFA Hotels & Resorts 1,481 -19,523 … -14,554 129 …
635 Combined Group Contracting 10,156 8,894 14 4,359 5,816 -25
636 Jeeran Holding … … … … … …
637 Palms Agro Production 452 823 -45 321 196 64
638 Al-Safat Tec Holding Co. -6,606 -2,751 … -2,273 … …
639 Mushrif Trading & Contracting 2,005 1,571 28 462 965 -52
640 United Projects Group 2,273 3,277 -31 958 2,046 -53
642 Aviation Lease & Finance 46,719 10,767 334 5,753 21,274 -73
643 Al-Mowasat Holding 2,108 1,303 62 868 1,104 -21
644 Mashaer Holding Company 5,201 -24,947 … -25,585 3,824 …
645 Oula Fuel Marketing Company 4,059 2,887 41 1,288 2,024 -36
647 Future Communications 1,153 3,216 -64 1,706 407 319
649 Hayat Communication Co. -598 1,214 … 991 395 151
650 Mubarrad Transport Co. -526 -179 … -67 -219 …
651 Kuwait Resorts Co. 430 -3,939 … -4,205 -1,418 …
652 Advanced Technology Co. 3,619 4,628 -22 2,304 1,549 49
653 Yiaco Medical Company 5,034 4,498 12 1,921 2,207 -13
654 Jazeera Airways Co. 10,555 -2,805 … 6,416 7,405 -13
655 Al Sour 4,484 4,367 3 2,304 1,881 22
657 Future Kid 842 247 241 -153 201 …
658 KGL Logistics Company 9,019 7,492 20 3,483 4,071 -14
659 AL-Nawadi Holding Co. 1,338 1,025 30 596 … …
660 ALRAI MEDIA GROUP COMPANY K.S.C 1,253 2,212 -43 -33 -317 …
661 ZIMA Holding Company -439 211 … -98 -461 …
Food
701 Livestock Trading & Transport -5,387 -205 … -242 -166 …
702 Danah Alsafat Foodstuff Company -1,580 2,270 … 824 -634 …
703 United Poultry 2,609 1,144 128 701 1,381 -49
704 Kuwait Food Co (Americana) 48,022 46,220 4 19,016 18,665 2
705 United Foodstuff Industries 267 210 27 -525 -122 …
706 Kout Food Group 4,082 5,042 -19 3,578 2,112 69
Non Kuwaities
804 Sharjah Cement & Industrial Dev. -3,514 2,689 … 1,124 -1,365 …
805 Gulf Cement -4,162 5,638 … 2,673 -3,800 …
806 Umm Al-Qaiwain Cement Industries 781 472 66 189 938 -80
807 Fujairah Cement Industries -5,330 406 … -536 -4,676 …
808 Ras Al-Khaimah for White Cement 5,206 6,336 -18 4,214 1,784 136
809 Arab Insurance Group -5,310 5,843 … 6,648 -4,179 …
810 United Gulf Bank 367 11,222 -97 1,976 -3,295 …
811 Egypt Kuwait Holding 37,680 36,734 3 18,034 18,270 -1
812 Bahrain Kuwait Insurance 3,042 3,142 -3 1,368 1,106 24
813 Gulf Finance House 106 -96,784 … … … …
817 Inovest -6,451 -9,661 … -7,139 -5,610 …
818 Ahli United Bank 85,732 73,280 17 35,663 40,963 -13
820 Ithmaar Bank -17,526 -39,933 … -41,153 -18,718 …
14

Kuwait Stock Exchange
KSE rally continues in March
The Kuwait Stock Exchange (KSE) rally continued through
March. But unlike February, large caps outperformed with
the value-weighted index up 2.6% on the month. The price
index was up a slight 0.6% closing the month at 6165,
its best level since June 2011. Trading volumes declined
slightly in March but still compare well to recent months’
averages. The formation of the new government coupled
with a slightly improved global outlook has contributed to
a generally better sentiment in the local market so far in
2012. The market has made some decent gains in the first
quarter of the year; up 6% and 3.6% on a price and valueweighted
basis respectively.
Real estate was one of the better performing sectors in
March at least on a value-weighted basis (up 6%). Banks
and services followed with gains of 3.5% and 2.6%
respectively. “Non-Kuwaiti companies” was the only sector
down on the month.
Volumes seem to have picked up from their 2011 levels
and daily traded value averaged KD 40 million in 1Q2012
compared to an average of KD 24 million last year. Activity
seems to have recovered due to some easing of regulations
by the Capital Market Authority (CMA).
The market gained KD 500 million in capitalization which
stood at KD 29 billion at the close of March.
regional markets REBASED performance
130
120
110
100
90
80
Mar-10 Jul-10 Nov-10 Mar-11 Jul-11 Nov-11 Mar-12
S&P Kuwait S&P GCC
S&P Pan Arab
130
120
110
100
90
80
kse Daily performance
kse REBASED performance
80
6400
110
110
70
60
6300
million KD
50
40
30
20
6200
6100
index
100
90
100
90
10
0
1
5 7 9 13 15 19
March 2012
Value of Traded Shares (left)
21 23 27 29
KSE Index (right)
6000
80
80
Mar.11 May.11 Jul.11 Sep.11 Nov.11 Jan.12 Mar.12
Value Weighted (LHS) Price Index (RHS)
KSE PERFORMANCE BY SECTOR, March 2012
Price- % Change in KSE Index Market Cap. % of Trading Activity Price to
KSE Index Price-Weighted Value-Weighted (million KD) Market (daily average) Earnings +
29-Mar-12 Mar-12 YTD 11 Mar-12 YTD 11 29-Mar-12 29-Mar-12 mn shares mn KD 29-Mar-12
Banking 11,550 2.3 2.2 3.5 3.1 13,003 44.8 9.4 5.8 23
Investment 3,943 0.6 10.6 0.6 8.9 2,085 7.2 149.0 10.8 ...
Insurance 2,700 -0.2 -0.2 1.0 -0.2 319 1.1 0.0 0.0 17
Real Estate 2,200 -2.3 8.1 6.0 14.4 1,910 6.6 128.6 8.2 ...
Industrial 4,263 -0.1 0.9 1.2 0.0 2,193 7.6 13.7 2.8 35
Services 14,024 3.7 5.8 2.8 3.7 7,646 26.4 128.2 12.9 11
Food 4,325 -2.7 -0.1 0.2 1.3 717 2.5 3.9 0.4 15
Non-Kuwaiti 5,992 -4.4 17.2 -1.4 12.1 1,128 3.9 57.4 3.6 12
Total Market 6,165 0.6 6.0 2.6 3.6 29,000 100.0 490.1 44.6 17
Kuwaiti Companies 27,872
Source: Kuwait Stock Exchange and Zawya.
Note: * PE is calculated using market cap as of month close and 12 months trailing earnings.
15

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