(MENAFN - Kuwait News Agency (KUNA)) Introduction of new stock market legislations and bolstering private sector's contribution to the state development plan is important to help revive Kuwait economy and overcome repercussions of the global financial crisis, CEO Kuwait Asset Management Company (KAMCO) Saadoun Ali suggested Saturday.
"Speeding up legislation introduction and application as well as increasing private sector's participation in conducting studies and implementing projects of the state development plan would help Kuwait investment companies overcome the crisis," Ali, also KAMCO managing director, said in an exclusive interview with KUNA in which he outlined a seven-point roadmap for investment companies to get out the grave impact of the global financial crisis.
The roadmap also included the restructuring of the balance sheet of investment companies to focus on main activities and encourage local companies to emerge.
Ali also highlighted the need for state measures to stimulate the economy and implement the development plan.
"Moreover, there is a need to increase spending on infrastructure projects, diversify the economy and support the productive economic sectors," he told KUNA.
Ali highlighted the effects of the state development plan on national economy.
"The development plan could positively impact on the national economy in general and investment companies in particular, as they can participate in conducting studies on the projects and provide funds as well as investing in public companies which will be founded for this purpose," he pointed out.
"The development plan is the first step in the right and the positive direction for an aspired economic recovery." Ali disclosed that investment sector in Kuwait has incurred huge losses since the start of the global financial crisis in 2008.
"The accumulated losses of the sector during the past four years amounted to two billion Kuwaiti dinars," he said, adding that a large number of these investment companies have failed to fulfill their financial commitments during that period.
As for (KAMCO), Ali said the company plans to cut balance sheet and sell investment portfolio to help produce liquidity needed to financial commitments.
"KAMCO will also focus on asset management and consulting activities," he added.
Established in 1998, KAMCO has been listed on the Kuwait Stock Exchange since 2003 and is a member of the Kuwait Projects Company (Holding) Group (KIPCO) - one of the leading holding companies in the Middle East and North Africa. Headquartered in Kuwait, KAMCO has established strong partnerships and affiliations with international financial institutions and experts which help to position it at the forefront of investment solutions in the region.
KAMCO offers its clients comprehensive access to local and international capital markets as well as a wide-ranging selection of financial products and services. KAMCO's strategic focus is on Asset Management and Financial Services.
The Asset Management services include brokerage services, tailored portfolio management, forward trading and local and international fund management.
As for the Financial services, they comprise the full range of corporate finance advisory services, including mergers acquisitions, IPOs, private placements, debt issuance, investment evaluation as well as private equity.