NIG Prospectus - London Stock Exchange

Level: 8 – From: 8 – Thursday, August 9, 2007 – 2:19 pm – mac5 – 3776 Section 07 : 3776 Section 07NIG faces different levels of competition in each of the different business areas in which it isengaged.Core Operating BusinessesBuilding MaterialsNICBM experiences a range of levels of competition in relation to its different businesses andproducts, as described further below under “Facilities”. Management of NIG believes thatNICBM’s principal competitive advantages in the building materials sector in Kuwait are:• NICBM’s history as a former majority Government-owned sector manufacturing companyestablishes a strong reputation, providing an easily recognised brand name and franchise.• NICBM has the largest production capacity in Kuwait, reflecting the Government’s originalintention to develop a building materials fabrication capacity with national scope. NICBM, asa result, enjoys economies of scale not available to its smaller domestic competitors.NICBM is also the only domestic manufacturer of certain of its product lines.• NICBM’s products (with the exception of very recent new products) have receivedGovernment approval, and in certain cases, Government tenders refer to NICBM productsby name as tender standards.• NICBM offers its customers a “one stop” service: NICBM believes it has a wider range ofproducts than any of its domestic competitors. Customers of NICBM are able to purchasetheir many building material requirements from one discrete supplier.Specialist EngineeringBI Group is the parent company of an international group of specialist engineering companies.BI Group’s principal competitive advantage is achieved by concentrating upon higher added valueproducts and activities. BI Group recognises the overriding importance of first class quality andcustomer service.PetrochemicalsNIG believes a competitive advantage will be achieved by strategically investing, sponsoring anddeveloping petrochemical projects.Financial ServicesThrough Noor, NIG believes its competitive advantage will be achieved by following a diversifiedinvestment strategy with major investments in private equity and direct investments in capitalmarkets and providing a broad range of financial services, which includes advisory services,underwriting, term financing, and syndications.UtilitiesNIG believes its competitive advantage will be achieved through the Combined National IndustriesCompany for Energy KSCC and The Karachi Electric Supply Corporation Limited which will focuson the utility industry to capitalise on the investment opportunities in the water and powergeneration sectors.69