Bringing on Board Young Spirits to Act As Translators with the New Generation
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Q3 2016 Bringing on board young spirits to act as translators with the new generation PAGE 3 ··············································· ··············································· The historical genesis of Markaz Corporate Governance PAGE 4 A new collaboration between Markaz & KES PAGE 7 Markaz MENA real estate projects achieving progress in GCC PAGE 10 1 engage Issue 3, Q3 2016 IN THIS ISSUE 3 COO’s letter 4 Markaz from the past 5 Markaz news 7 CSR activities 9 Informed opinion 10 Getting to business 18 Laws & regulations 19 Personal interest EDITORIAL TEAM Alrazi Albudaiwi: Editor-in-Chief; Sondos Saad: Assistant Editor-in-Chief; George Kunnumpurathu: Editor International Investment; Anjali Parkhi: Editor Human Resources; Khaled Almubaraki: Editor MENA Real Estate; Azzam Al-Otaibi: Editor MENA Equities; Hammad Khan: Editor Advisory; Abdulrazzaq Razooqi: Editor Corporate Finance; Deena Alrefai: Editor Private Banking; Murtaza Pattherwala: Editor Published Research; Anu Abraham: Editor Compliance and Risk Management. [email protected] 2 FOREWORD COO’s letter edge-based institution; where- we need to continuously attract by, we seek to be the experts highly qualified and ambitious in the target markets in our young candidates, who will act respective core activities. as translators with the new You have successfully made generation, who will challenge Markaz achieve this status as us, not only into evolving, but evidenced by the clients, eco- also to trust them in ultimately nomic development agencies, taking the company forward. and international media that Our collective role is to train continue to seek your advice them, to mentor them with our or quote your research. It is values and principles, and to not easy to maintain efficient- provide them with our expe- ly this level of expertise in a rience and support that will highly dynamic environment give them the platform and for a company of our mod- the vision to formulate a better erate size. Towards that, we future for Markaz. have to rely on collaborative teamwork, ongoing communi- Ali H. Khalil cation across the organization, Chief Operating Officer and by sharing and leveraging information. Few years ago, we em- barked on replacing our leg- acy systems by dynamic and integrated ones. This means Dear Colleagues; simply that our IT systems will In this Issue of Engage, I share with you what be constantly modified and keeps me most challenged as the COO at Markaz; improved to help us adapt to the fast changing environment, it is the recognition of the unsettling certainty that and cost-efficiently comply the world is dynamic, it changes faster than our with complex reporting and ability as individuals to adapt, and faster than regulatory requirements, and to help us monitor and manage any individual’s capability to build new skills. our financial and operating risk. And that is ok; certainly one should not let these Risk assessment and man- inalienable facts of life frustrate us to a stall. But agement is a core success rather, at Markaz, it has encouraged us to face the factor. We view risk and its components as very dynamic, challenge and implement a strategy that makes and increasing in complexity such dynamic environment a natural habitat in with the fast development of which Markaz continues to excel. investment products, related regulations, interconnectivity The challenge of change for have equally contributed in of markets, and the arising Markaz is even more acute, creating this advantage by pur- geopolitical risk. Towards this, since seeking excellence, stay- suing the following initiatives: we make it a priority to remain ing ahead of competition in ev- vigilant in reading ery aspect, and adopting best We focused on being an and assessing the practices is at the core of our underlying changes. operating strategy. Towards information and knowledge- Finally, under- that, your ability to cope with based institution; whereby, we standing the chang- change is the very competitive seek to be the experts in the es prompted by the advantage that has allowed emerging new gen- Markaz to prosper and develop target markets in our respective eration, and posi- over the several market cycles core activities. tioning our company during the past four decades. to better serve their All of our units, whether rev- We focused on being an needs in the future is critical to enue generating or support, information and knowl- our sustainability. That is why 3 engage Q3.2016 MARKAZ FROM THE PAST MARKAZ NEWS The historical genesis of H.H the Amir Markaz Corporate Governance receives Mr. Manaf Alhajeri Markaz Board of Directors 1999 among KDIPA convoy Left to Right: Sheikh Abdullah Al-Sabah; Mr. Jassem Al-Mousa; Mr. Diraar Alghanim; Mr. Ibrahim Alraqum; Mr. Sulaiman Al-Dalali; Mr. Bader Al-Saad Markaz Board of Directors 2016 His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah hosted, at Bayan Palace, Minister of Commerce and Industry and Chairman of Kuwait Direct Investment Promotion Authority (KDIPA) Dr. Yousef Mohammad Abdullah Al-Ali, accompanied by General Director of the investment authority, Sheikh Dr. Meshaal Jaber Al-Ahmad Al-Sabah, and Board members. Left to right: Mr. Adel AlGhannam; Mr. Fahad Al-Jouan; Mr. Ayman Alshaya; Mr. Faisal Al-Jallal; Mr. Manaf Alhajeri, as a board of KDI- Mr. Diraar Alghanim; Sheikh Humoud Sabah Al-Sabah; Mr. Fouzi Al-Mukaimi PA, was received at Bayan Palace among the authority’s convoy to present the 2015 Through its history that extends for more than 40 years, Markaz’s KDIPA annual report to His Highness the Board of Directors has always placed special emphasis on corpo- Amir, who was also briefed about the lat- est accomplishments by the authority. rate governance. This keenness was manifested in the company’s In 2015, KDIPA received a total of 14 prudent policy that was transformed into a governance system applications for investment licensing and prior to the issuance of related laws and legislation. Markaz granting incentives with a total value of KD 585,029,939. Of this, 68.8% were li- implemented this policy with great efficiency, thus turning the censed and approved and 31.2% under company into one of the few Kuwaiti private institutions to de- study. velop an official corporate governance structure with voluntary compliance. Markaz also took the necessary steps to determine the level of governance risks and set adequate internal controls and administrative systems for risk mitigation in line with the best international practices. 4 MARKAZ NEWS Markaz family welcomes Ramadan with the traditional Graish gathering Every year, Markaz family gathers in the Graish event, a tradition on which banquets are presented and all kinds of meals are prepared, to celebrate the beginning of the holy month of Ramadan. This year, Graish was a success with all your tasty and delicious dishes. Your contribution is what helps accomplish such great events. 5 engage Q3.2016 MARKAZ NEWS Markaz holds the Annual Ghabga for its employees What better way to celebrate the essence of Ramadan than to be with the people you care about? Markaz family once again gather in the annual Ghabga event at Symphony last June to celebrate the holy month of Ramadan and affirm a strong bond with the company and with each other. 6 CSR ACTIVITIES A new collaboration Markaz renews between Markaz & KES partnership with KRCS A new training program on “sound governance in Markaz recently renewed its “Humanitarian the state’s organizations and the administrative Partner” relationship with the Kuwait Red reforms needed” Crescent Society (KRCS) to support the orga- nization in helping needy patients in Kuwait and Out if its commitment to introduce principals of good educating low-income families. This partnership governance in the public sector as stated in its CSR charter, Markaz’s collaboration with Kuwait Economic Society (KES) is a continuation of cooperation between KRCS has resulted in creating a customized training program to the and Markaz over the past years. state’s organizations titled: “sound governance in the state’s organizations and the administrative reforms needed.” Mr. Alrazi Yousef Albudaiwi, Vice President - Media The training program will hand over a special booklet in- and Communications at Markaz said: “Markaz is really spired by KES’s previous series of publications, lectures and proud of its partnership with Kuwait Red Crescent So- roundtable discussion that brought key local stakeholders with ciety, which is one of the well-reputed non-profit organizations international expertise on governance. in Kuwait that acts as a link between humanitarian action and The booklet discusses different factors including: the partners who believe in helping humanity. We truly thank the people behind it and its staff for the dedicated efforts to The citizen’s rights to access Accountability serve humanity in Kuwait and around the world.” services and its relation to Capacity building and enrich- Mr. Albudaiwi added: “This partnership comes from Markaz’s good governance ing organizations corporate social responsibility strategy that aims at fulfill- A governance and transpar- The ease of doing business ing the company’s ency charter for public sector and the relation of that with These relationships act as a link CSR responsibil- Conflicts of interest as an ob- administrative reforms ities through three stacle to good governance Internal audit and risk manage- between humanitarian action main pillars, which HR policies required for good ment and the partners who believe in are building human governance The importance of good gov- helping humanity capabilities, aligning Methods of Meritocratic ap- ernance and institutions effec- our business envi- pointment of public sector tiveness ronment with the principles of sustainable development, and leaders Fighting corruption and its rela- promoting good governance in the business environment.