Kharafi National: MEED Assessment

06 July 2010

As regional governments turn to privatisation, the Kuwaiti firm thinks there will be opportunities to grow

Kharafi National has performed strongly across its business lines since being established more than 30 years ago.

Its strongest financial growth was recorded during the boom years of the 1990s when revenue rose from $52m in 1991 to $151m in 1999. Its development continued during the global crisis, albeit at a slower pace, with revenue jumping 28 per cent from $781m in 2007 to $1bn in 2009.

Procurement values last year returned to 2005 levels at $313m, but as the construction industry begins to make a slow recovery, these values are expected to rise. Successful tenders and new projects will stimulate procurement quantities and revenues will be boosted by lower commodity prices.

As the Mena region continues to develop and the population grows, the need for enhanced infrastructure will increase. Kharafi National predicts that there will be a number of opportunities in BOT, BOO and PPP projects across all of its business streams as regional governments continue to adopt privatisation strategies and look to minimise the role of the state.

Although these partnerships often come with a number of challenges, they are familiar investment models to Kharafi National, providing the ideal opportunity for the company to expand in the international market.




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