How business, doctors and journalists prey on your food anxieties I

.
SPECIAL ADVERTISING SUPPLEMENT P .S
of Kuwait <strong>and</strong> the Mlddle East <strong>and</strong> the
Commerclal Bank of Kuwait,
National Bank of Kuwait (NBK)
increased net profits in 1994 by 5 .8%
to $178 .5 milGon . N8K has about 40%
of the domestic market <strong>and</strong> moved
into impressive new oremises at the
beginning of the yea. it is particularly
strong in the corporate finance field
<strong>and</strong> has been successful in bidding for
much of Kuwait Airways' <strong>business</strong> as it
rebuilds its fleet . It is exp<strong>and</strong>ing its
overseas network <strong>and</strong> has even
opened a representative office
in Vietnam .
Gulf Bank a'iso advanced $80 million
to finance an Airbus A300 in 1993 .
John D . Harris, the chief generai
manager, says that his bank
"is concentrating on st<strong>and</strong>ards of
service <strong>and</strong> improving our financial
products . Branches are being
redesigned <strong>and</strong> a fully automated
computerized system will be installed
by the end of 1996 . We have no plans to
merge ." Guh Bar.k's profits increased
by21%in 1994,
Burgan Bank's managing director,
Ahmed AI-Abdullah AI-Ahmed AI-
Sabah, is positive about the futt :re .
Loan syndications, pro ;ect finance <strong>and</strong>
joint ventures figure in his plans, with
Asia <strong>and</strong> South Africa being to the fore .
The leading banks are developing
new sevices, extending credit-card
faciiities, consumer loans <strong>and</strong>
telephone banking . 'With .43% of the
population being under the age of 15,
there is considerable concentration on
the youth market .
Kuwait Finance Center (KFC) was
the first quoted mercnant bank on the
Kuwait stock exchange in 1988,
though its impressive chairman, Diraar
Y. Alghanim, explains that its origins
date back to ;he early 1970s when it
worked closely with South Korea <strong>and</strong>
Egypt <strong>and</strong> established a joint-venture
merchant bank in Seoul, which last
year was renamed Hyundai
International Merchant Bank . KFC
holds a unique license as an
investment bank, undertakes advisory
work for foreign clients <strong>and</strong> invests
directly in the U .S . <strong>and</strong> Europe .
Side by side with Western-style
commercial banking, Islamic finance is
growing in importance since-it started
in Kuwait 18 years ago . Kuwait Finance
House (KFH) was established as a
retail bank, which operates according
to Sharia law that forbids dealing in
interest . It is 49% government-owned .
PRIVATIZATION
Sheikh Salem Abdul Az!z AI-Sabah, the
Governor of the Central Bank of
Kuwait, emphasized the necessity of
providing the private sector with a
b :gger role in the domestic economic
activity to help solve chronic problems
pertaining to monopclies witnessed in
the public sector, in a recent interview
in the English-language daily, the
Kuwait Tirnes .
"This will be very he':pful in
des!gning <strong>and</strong> maintaining a balanced
price pclicy, create incentives <strong>and</strong>
increase the spirit of competition in the
local market," he said . "The private sector
would attract local investment, which
will in turn ciscourage capital outflow,"
Like the other oil-producing
countries, Kuwait has a large public
sector that dcminates the economy
<strong>and</strong> the private sector, <strong>and</strong> includes the
bulk of oil acd o!I-sector-related
activities as we,.'' as a wide range of
nomoil-related activities including the
major utilities . -
In a shcr, space of time trading has resumed its
place as a'rainstay of Kuwaic's development .
In Kuwait's commitment to growth,
the private sector has to play
an increasingly important role, The
Kuwait Investment Authority (KIA),
which is responsibie for the
management of the ongoing revenues
from oil, request.ed that the World
Bank prepare a comprehensive
privatization strategy <strong>and</strong>
implementation plan .
Ali A . Rashaid Al-Bader, KIA's
managing director <strong>and</strong> a former
banker, expiains that privatization will
go ahead on two fronts . "We have
already begun the sale of government
shareholdings in some local
Your Bank in the
State of Kuwait
Burgan Bank, a dynamically
poised institution in the
State of Kuwait offers expert
flnancial advice for all categories
of projects, trade financing, merchant
<strong>and</strong> investment banking needs .
A highly dedicated <strong>and</strong> professional
team offers consultancy services <strong>and</strong>
financial packages to suit each
<strong>business</strong> proh`le .
Burgan Bank Q
Ahmed Al Jeber Sven
5uea of Kuwur ~
Td . :2a39W0 (20 6ncal
Fex No. . 2