Data prepared by Al-Anbaa revealed that the share of government agencies and institutions in cash dividend distributions for companies listed on the Kuwait Stock Exchange, in which they have ownership exceeding 5%, amounted to about 799.4 million dinars.
This is equivalent to an annual cash return of 2.7%, during the last 5 years, specifically between 2019 and 2023. These figures indicate the importance of these investments in providing additional revenues to government agencies that help them achieve greater financial sustainability in the long term.
Moreover, the data showed that the investments of Kuwaiti government agencies in companies and banks listed on the Kuwait Stock Exchange are considered one of the main tools that achieve sustainable financial returns and enhance their role in supporting the national economy.
As the cash dividend distributions that government agencies receive from these companies and banks; are a basic means of increasing their revenues, especially in light of the focus of many government institutions on developing their investments and maximizing their financial returns.
According to the data, the highest cash dividends received by government agencies in listed companies were in 2023, when they recorded 191 million dinars.
In 2020, the government agencies’ share of cash dividends reached its lowest level in 5 years, at 104.54 million dinars, due to the Corona pandemic and companies’ reservations about cash dividend distributions.
In terms of the government agency that received the highest cash dividends, the Public Investment Authority topped the list with cash dividends in the last 5 years, amounting to 341.51 million dinars, which is equivalent to 42.7% of the total dividends during that period.
The highest was in 2019, at 77.1 million dinars, which then reached 63.46 million dinars in 2022, rising in 2023, to 72.33 million dinars.
The Public Institution for Social Security distributed cash dividends in the last 5 years, which amounted to about 312.2 million dinars, equivalent to 39.1% of cash dividends to government agencies.
The highest distributions were in 2023, when they amounted to 80.66 million dinars, up from 64 million dinars in 2022.
Cash dividends from the ownership of the Public Authority for Minors Affairs in companies listed on the Kuwait Stock Exchange during the last 5 years, amounted to about 86.3 million dinars, followed by the General Secretariat of Endowments with cash dividends amounting to, 50.52 million dinars.
Distributions of “Baytak”
As for the companies, cash dividends from the contribution of government agencies to Kuwait Finance House “Baytak” during the past five years, amounted to about 358.3 million dinars, which is equivalent to 45% of the total cash dividends distributed by listed companies in which government agencies own a stake.
Distributions of “Bayt.com” and “Zain”
The Zain Group came in second place in terms of the value of cash dividends distributed to government agencies, which amounted to 159 million dinars, which is equivalent to 20% of the total cash dividends distributed by companies to government agencies in the past five years.
As for the National Bank of Kuwait, its cash dividends distributed to government agencies amounted to about 63 million dinars during the same period, which is equivalent to 8% of the total cash dividends.
Whereas, during 2023, Kuwait Finance House (KFH) continued to lead in terms of cash dividend distributions, with about KWD 113.4 million, which is equivalent to 59.5% of cash dividend distributions for 2023.
This was followed by Zain Group and National Bank with KWD 23.2 million and KWD 15.54 million, respectively, noting that government entities have ownerships of less than 5% in the shares of listed leading companies, which are undisclosed ownerships.
