Kuwait's Al-Salam Group lists on Dubai exchange

30 September 2013

The Sharia-compliant holding company saw its trading volumes dwindle on the Kuwait Stock Exchange

Kuwait-based Al-Salam Holding Group listed on the Dubai Financial Market on 29 September.

Lower trading activity of its stock on the Kuwait Stock Exchange, where its volumes have nearly halved over the past half year, has likely prompted the company to seek other markets for liquidity.

In the first quarter of 2013 the company registered a year-on-year loss of 55 per cent to KWD148,000 ($522.86m) from its operations across the GCC region. The group manages a range of assets, including real estate across the GCC region, provides loans to companies it owns a stake in, and earns profits through ownership of patents, industrial trademarks, and other rights.

The new listing brings the total number of listings to Dubai’s benchmark index to 55 public joint stock companies. Eight Kuwaiti companies currently trade their shares on the index.

Expanding and diversifying its offering is one of the key elements toward further growth of Dubai’s stock market. Several initial public offerings are understood to be in the planning, with many local companies eyeing London to tap into a larger liquidity pool and raising their international profile.

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