Government share in the KSE listed companies is about 6.01 billion dinars

Data compiled by Al-Anbaa indicates that, as of the close of 2023, the Kuwaiti government’s ownership in 33 companies listed on the Kuwait Stock Exchange was approximately 6.01 billion dinars.

This figure represents 14.8% of the total market capitalization value of all companies listed on the Stock Exchange, which reached 40.63 billion dinars.

The value of the government’s ownership in these 33 companies is equivalent to 21.4% of their collective market capitalization, totaling 28.1 billion dinars.

Analyzing the trend, it is evident that the government’s declared ownership in listed companies saw an increase of about 1.4 billion dinars in 2021, reflecting a 28% annual growth rate. This brought the total to 4.9 billion dinars at the end of 2020.

Subsequently, in 2022, the ownership value rose by approximately 625 million dinars, marking a 10% increase and reaching 6.92 billion dinars by the end of 2022. However, in 2023, there was a decrease of about 900 million dinars, equivalent to a 13% decline. Over the past five years, the value of government agencies’ ownership has doubled twice, starting from 3.43 billion dinars at the end of 2017 to 6 billion dinars at the close of 2023.

With the Kuwait Stock Exchange reaching record highs in 2024, the value of government agencies’ ownership in these 33 companies increased to about 308 million dinars, totaling around 6.32 billion dinars as of January 10, 2024.

Breaking down the ownership, the General Investment Authority holds the lead among government agencies, declaring ownership in 8 companies on the Kuwait Stock Exchange.

The market value of its ownership, which exceeds 5% of the companies’ capital, stands at about 2.32 billion dinars, representing 38.6% of the government’s total contributions. This reflects a decrease of about 379 million dinars from the end of 2022, with a slight increase of 52 million dinars in 2022. Over the past five years, the General Investment Authority’s contributions increased by approximately 658 million dinars.

The largest ownership of the General Investment Authority is in Kuwait Finance House (KFH), with an ownership percentage of 16.8%, valued at 1.8 billion dinars. This constitutes 77.5% of its declared ownership on the Kuwait Stock Exchange. The General Investment Authority also holds less than 5% ownership in undisclosed leading listed shares.

Additionally, its investments in the Zain Company, the Warba Bank, and the Kuwait Investment Company are 349 million dinars, 61 million dinars, and 43.4 million dinars, respectively.

Historically, the value of the Kuwait Investment Authority’s contributions fluctuated, reaching its peak at about 2.7 billion dinars in 2022 before decreasing to 2.3 billion dinars by the end of 2023.

The Public Institution for Social Security (PIFSS) secured the second position in terms of declared ownership in companies on the Kuwait Stock Exchange, with investments and contributions in about 28 companies valued at 2.26 billion dinars.

This constitutes 37.6% of the total government contributions, with a decrease of about 201 million dinars in 2023, following an increase of 278 million dinars in 2022. The largest contribution of the General Organization for Social Insurance to the Kuwait Stock Exchange is in Kuwait Finance House (KFH), amounting to 985 million dinars.

In third position comes the Public Authority for Minors Affairs, with investments worth 785 million dinars, representing a 7.32% ownership in the capital of Kuwait Finance House (KFH).

The General Secretariat of Endowments follows as the fourth-largest investor in the stock market among government agencies, holding investments worth 546 million dinars in Kuwait Finance House at a rate of 5.09% of its capital.

In summary, the total investments of government agencies in the Kuwait Finance House are 4.11 billion dinars, equivalent to 68% of the total value of their contributions in stocks listed on the Kuwait Stock Exchange.

Contributions from the Zain Group, the National Bank of Kuwait, Agility Company, Kuwait Airways, and Kuwait Petroleum Corporation stand at 469.5 million dinars, 397 million dinars, 231 million dinars, 23 million dinars, and 27 million dinars, respectively.