KIPCO forecasts profit of between KD105m and KD110m for 2008

The company also forecast earnings per share during 2008 of between 70 fils ($26 cents) and 80 fils ($29 cents).

KIPCO also announced future plans to streamline the structure of its holdings in commercial banking, investment banking and asset management.

The announcements were made at the company's annual Shafafiyah (transparency) Investor's Forum where KIPCO and United Gulf Bank presented reviews of 2007 and their 2008 earnings forecasts to shareholders and institutional investors.

KIPCO also announced that it will increase its holdings in its financial services companies and accelerate the regionalisation of those companies.

KIPCO is also considering investments in sectors such as education and residential housing in countries such as Saudi Arabia, Egypt, Algeria and India.

During the event, United Gulf Bank (UGB) announced its 2008 earnings forecast.

UGB's Deputy Chief Executive Officer, Mr Mohammad Haroon, said he expected the bank to achieve record profits of KD38.5m ($141m) in 2008 - an increase of 26% over the previous 12 months.

Speaking at the Forum, Mr Faisal Al Ayyar, KIPCO's Managing Director and Chief Executive and UGB Chairman, said the company is planning to launch major new initiatives during 2008:

"For the last few months we have been putting the finishing touches to some exciting new ventures. In particular, through organic growth and acquisitions we plan to increase our market share of commercial and investment banking in the MENA region because markets such as Jordan, Algeria, Saudi Arabia and Qatar offer very attractive possibilities. We are considering expanding our operations in Iraq and Syria as suitable opportunities arise. We are also evaluating the launch of a regional pension and savings product which would be very attractive to a large number of consumers across the region".

During his presentation, Mr Al Ayyar explained that KIPCO is planning to change the structure of its investment banking, commercial banking and asset management operations:

"By streamlining our financial services operations into two companies, we will develop further synergies between our businesses and as a result offer our clients and customers improved services. These plans will also provide a catalyst for more organic growth among our financial sector holdings and are the blueprint for future success".

Mr Al Ayyar added: "The rise in net profit in 2008 is based entirely upon operational income and reflects the strong underlying growth in our core businesses. We will continue to build and realise the value of our businesses. Taken with the KD535m of hidden value of our holdings in our core companies, KIPCO is in a very healthy position to continue its growth in the future".