KAMCO unveils new Islamic investment company Al Raya

The company is now under Incorporation at a price per share of 100 Kuwaiti fils plus 5 Kuwaiti fils per share (5%) subscription fee.

Al Raya is a private company that will be incorporated under Kuwaiti company law as a Kuwaiti closed shareholding company, and will be registered with the Central Bank of Kuwait as an Islamic Investment Company.

The company is to be established with a paid-up capital of KD17m divided into 170 million shares. It will primarily be targeting international investors in developed markets interested in products and services relating to Shariah compliant international asset management.

"Al Raya Investment Company aims to be the first and most comprehensive Islamic investment company in Kuwait and the GCC region with a clear focus on international Islamic asset management products and services," said Mr. Hazem Al-Braikan, Chairman of the Founders' Committee.

Primarily, the company will target international equities, asset management, alternative investment products, advisory services and portfolio management segments of the market. In addition to its primary focus on International Islamic investments, in the longer term it will also aim to offer the full range of Shariah compliant investment products.

Buoyed by strong investor demand, Islamic finance represents a fast growing market segment. At the end of 2006, over 250 Islamic financial institutions operated in more than 75 countries, holding assets estimated at more than $265bn with another $400bn in financial investments. It is estimated that within the next decade, 50 to 60 percent of the total savings of the world's 1.5 billion Muslims will be in the form of Shariah compliant products, and that the potential market for Islamic financial services to be in the area of US$ 4 trillion pointing to huge growth potential for Islamic investment companies.

"KAMCO is delighted to announce this new investment opportunity to its clients and investors in Kuwait and internationally," said Mrs. Intisar Al-Suwaidi, KAMCO Vice Chairman.

"We strongly believe that this private placement offering will be of significant interest to selected and sophisticated investors. Al Raya Investment Company will address the needs and interests of market segments un-supported by existing GCC-based investment companies; thus enabling it to benefit from early mover advantage."

The private placement is scheduled to close on 25 November 2007 and shall be opened to selected investors. The Founders of the Company anticipate that the Al Raya Investment Company will be in a position to float its shares on the Kuwait Stock Exchange (KSE) and Dubai Financial Market (DFM) within 3 to 5 years of operations, subject to the fulfillment of all listing requirements and conditions.