NIC reports profit of KD 20.7 million

04/11/2025 03:53 AST

National Investments Company (NIC), one of Kuwait's leading investment firms, announced strong financial results for the first nine months of 2025, posting a net profit of KD 20.7 million or 26 fils per share, compared to KD 10.2 million and 12.8 fils per share for the same period in 2024. The results represent a 103 percent increase in net profit, reflecting exceptional financial growth and continued operational strength.

Khaled Waleed Al-Falah, Chairman of the Board at National Investments Company (NIC), said the company's performance underscores the success of its operational strategy and its ability to deliver strong results despite economic challenges. He added that NIC remains firmly on track toward achieving sustainable growth and expanding its market presence.

NIC continues to advance its long- term strategy and ambitious 2025 objectives through disciplined asset management, strategic diversification, and a flexible approach to evolving market conditions. These efforts have driven steady improvements across key financial indicators.

By the end of the first nine months of 2025, total assets grew by 21 percent to reach KD 344.4 million, compared to KD 283.6 million at the end of 2024. Shareholders' equity (parent company) increased by 17 percent to KD 231.0 million, compared to KD 197.4 million at the end of 2024. Other comprehensive income recorded growth during the first nine months of the current year, reaching KD 30.4 million, an increase of 68 percent compared to KD 18.1 million in the corresponding period of the previous year. This increase contributed to a 79 percent rise in the balance of accumulated changes in fair value, which grew from KD 38.2 million as of December 31, 2024, to KD 68.6 million by the end of the first nine months of 2025.

The company's revenues amounted to KD 35.2 million, marking a 60 percent increase compared to KD 22.1 million in the same period of the previous year, along with a growth in total assets under management (AUM) to KD 1.238 billion, up 15 percent compared to KD 1.077 billion at the end of 2024. These results further reinforce NIC's position as one of Kuwait's and the region's leading investment companies, driven by strong governance, effective strategic execution, and a continued commitment to delivering sustainable value for shareholders and clients.

Strong financial performance
Khaled Waleed Al-Falah affirmed that the company continues to strengthen its positive trajectory by achieving sustainable financial and operational results, driven by a balanced strategy focused on diversifying products and services while expanding its presence in local and regional markets. This approach has enabled NIC to maintain its leadership throughout the first nine months of 2025, supported by quality assets, prudent investments, and strong risk management capabilities. These factors have resulted in solid returns and robust performance indicators, reflecting the company's disciplined execution and steady progress toward its strategic objectives.

Al-Falah also emphasized NIC's commitment to the highest standards of corporate governance and to fostering a culture of innovation and creativity across its organization. This, he noted, has enhanced operational efficiency and strengthened the company's readiness for future growth by enabling higher productivity and profitability while maintaining a balance between targeted profitability and measured expansion. As part of its forward-looking strategy, NIC continues to pursue new investment opportunities through an integrated and forward-thinking approach designed to deliver sustainable, diversified returns across multiple sectors, reinforcing its position as one of the region's leading investment entities.

Clear strategic vision
Al-Falah noted that the company's Strategy Sector made remarkable progress in the third quarter of 2025 in implementing NIC's transformation plan, developed in partnership with a global management consulting firm. The first phase of the three-stage roadmap achieved a 76 percent completion rate, coinciding with the launch of the second phase, which includes assigning responsibilities across departments. By the end of Q3 2025, approximately 81 percent of second- phase initiatives had been completed.

The first phase recorded strong advancement in several key areas, including enhancing strategic partnerships and mergers, optimizing the operating model, and expanding distribution channels. Efforts also continued to develop new products and services aligned with NIC's long-term goals. Building on this momentum, the second phase is progressing steadily, with a focus on deepening operational efficiency, broadening offerings, and strengthening strategic collaborations to support growth and innovation.

Al-Falah added that the third quarter saw major milestones in NIC's growth journey, most notably the successful expansion of its office at the Dubai International Financial Centre (DIFC), following receipt of a financial services license from the Dubai Financial Services Authority (DFSA) on October 7, 2025. This step further enhances NIC's regional presence and opens wider strategic horizons.

Simultaneously, the company launched the second phase of its transformation strategy, supported by the achievements of the Project Management Office (PMO) within the Strategy Sector during the first phase. The sector remains committed to leading NIC's transformation journey with discipline, flexibility, and integration across all organizational levels.

In closing, Al-Falah expressed appreciation to the Board of Directors for its continuous support and visionary leadership, which have been pivotal in strengthening the company's position and sustaining its success. He also acknowledged shareholders' confidence in re-electing the Board for the 2025 - 2027 term and commended the professionalism of the executive management team and the dedication of NIC employees, who remain key contributors to the company's ongoing achievements and long-term vision.

Outstanding achievements
Fahad Abdulrahman Al-Mukhaizim, Board Member and Chief Executive Officer of NIC, stated that the company concluded the first nine months of 2025 with strong results reflecting its sustainable growth trajectory. The performance underscores the resilience of NIC's strategy and the effectiveness of its forward-looking direction. Al-Mukhaizim explained that NIC continues to prioritize evolving client needs through integrated investment solutions powered by advanced digital technologies, strengthening its competitiveness and reinforcing market leadership. He noted that the company's systematic execution of strategic plans across all sectors has expanded its investor base and attracted additional capital to quality investment opportunities, both locally and internationally, through managed portfolios for individuals and institutions.

Regarding asset management, Al-Mukhaizim emphasized the strong performance of the company's local investment funds during the first nine months of 2025, driven by the positive momentum witnessed in the Kuwait Stock Exchange during this period. This solid performance came despite ongoing global challenges, including persistent trade tensions, international market volatility, and regional geopolitical and military developments. The Al-Wataniya Investment Fund achieved a return of 5.8 percent during the third quarter of 2025, compared to a 2.9 percent return recorded by the benchmark index for the same period.

NIC's financial instruments team also achieved notable progress in expanding the market-making program, adding one new listed company during the quarter, bringing the total to 12 companies by the end of Q3 2025. This aligns with NIC's strategy to enhance financial market services, increase liquidity, and strengthen trading efficiency, supporting market stability and investment appeal. The company remains a key strategic partner in the ongoing development of Kuwait's capital markets.

Strong operational performance
Al-Mukhaizim commended the Financial Advisory Division for its significant progress in executing several major strategic transactions with key partners. The team is currently advising on three major capital market deals valued at approximately $1.5 billion, all expected to conclude this year. Given the scale and importance of these deals, the division has adopted a focused approach targeting high-impact strategic opportunities where NIC can deliver exceptional value and measurable results. The division also recently advised firms in the investment and banking sectors and assisted a Kuwaiti shareholding company in evaluating its regional real estate portfolio. It is currently marketing select sale opportunities to a targeted group of clients.

Looking ahead, the Financial Advisory Division is managing a robust pipeline of future transactions and preparing several new deals. This increased activity is driven by Kuwait's improving economic environment, rising investor confidence, and ongoing regulatory initiatives that are accelerating the development of capital markets and corporate restructuring efforts in the region.

Al-Mukhaizim added that the Alternative Investments Division achieved notable progress during the third quarter of this year across several key initiatives. The NIC Real Estate Credit Fund I, with a capital of $37 million, secured significant contributions from several strategic investors, reflecting strong investor confidence and sustained demand for real estate credit opportunities. The division continues to maintain a strong portfolio of credit investments supported by favorable market conditions and solid performance of existing projects.

NIC further expanded its strategic partnerships through a new collaboration with Forman Capital, enhancing access to high-quality real estate credit opportunities. At the same time, the company is developing venture capital investment opportunities tailored for NIC clients, aligning with its strategy to diversify income streams and strengthen its investment portfolio.

Regarding the company's portfolio, the management continues to implement its strategy for divesting from previous investments. The company successfully completed one divestment during the third quarter of the current year and received preliminary offers for the sale of additional assets.

Al-Mukhaizim revealed that National Investments Company achieved accelerated growth, underscoring its strong ability to enhance the wealth of its investors and clients while solidifying its position as one of the leading players in the financial sector both locally and regionally. The company continued to deliver exceptional positive results with sustained growth in operational revenues, reflected in a KD 160 million increase in assets under management (a 15 percent rise), along with the establishment of 141 new portfolios during the first nine months of 2025, despite economic challenges stemming from geopolitical instability in the region and global financial uncertainty. As part of its commitment to enhancing client experience and service efficiency, NIC is currently testing a range of innovative digital solutions in collaboration with leading global technology firms, aimed at streamlining processes and improving service quality to provide clients with a more advanced and comprehensive experience.

On the real estate front, Al-Mukhaizim highlighted the company's success in attracting new investment properties under management, increasing AUM and strengthening NIC's position in the real estate sector. The company continues executing enhancement plans for existing properties to preserve value and improve efficiency, maintaining high occupancy rates across both owned and managed assets. NIC also introduced a digital property management platform, enabling tenants to manage maintenance and payments online while giving property owners real-time oversight of asset performance and cash flows.

Digital transformation and future outlook
Al-Mukhaizim revealed that NIC officially launched the ZainTech Cloud Program in July 2025, offering Infrastructure-as-a-Service (IaaS) and Disaster-Recovery-as-a-Service (DRaaS) solutions. As part of its ERP transformation, the company signed a strategic agreement with ASCOT Enterprise Solutions and Onfinity to implement an AI-powered ERP system, with full rollout scheduled for Q4 2026, in line with its digital transformation roadmap. NIC has also expanded its use of artificial intelligence (AI) across operations, integrating it into ERP systems for intelligent analytics, workflow automation, and data- driven insights. In addition, the company adopted Microsoft 365 Copilot to enhance productivity by supporting users in drafting, summarizing, and generating insights, with implementation aligned with governance and compliance standards.

In conclusion, Fahad Al-Mukhaizim reaffirmed NIC's confidence in achieving its 2025 strategic goals, guided by a vision centered on sustainable growth and digital transformation that aligns with the evolving expectations of clients and shareholders. He emphasized the company's continued role in supporting Kuwait's economic development through advanced investment solutions and services that reflect NIC's leadership and deep expertise across regional markets.

Al-Mukhaizim also extended his sincere appreciation to the Board of Directors of National Investments Company for their unwavering support, and to all colleagues for their exceptional performance and dedication, which have been instrumental in delivering the company's outstanding financial results.

Kuwait Times