Construction  Industry Prospects

In addition to positively affecting other facets of the economy, the increase in the Kuwait government’s development funding will fuel the demand for large-scale construction  projects and infrastructure works. Specific types of construction projects will be roads, bridges,drainage systems,cables and  pipes, office buildings,commercial facilities, community housing schemes,and the like. The first group to gain from the  development projects will be those builders and infrastructure specialists that are best equipped to handle large-scale operations. UGCC, which is the subsidiary of JHC, and other major players in the Kuwaiti construction industry are thus well-positioned at the forefront of a new economic landscape.

Kuwait’s Economy and Investment Climate

Historically, the Kuwaiti economy has been heavily dependent on oil revenue for sustainability and growth. Since Liberation, the government has been pursuing a policy of economic diversification by using the capital influx from oil as a developmental spring board in other sectors. In the last few years, the government, bolstered by rising oil prices, is in a position to substantially increase its development expenditure.

Experienced and Strong Management

JHC, the parent company of UGCC, is established by a group of individuals who have proven commitment to hard work and the dedication to achieve continual success, as evidenced by the consistent performance of UGCC. The top managers have several years of experience in the construction industry and are also directly linked with the future of JHC as its shareholders.

JHC has made a strategic investment by acquiring 100% of UGCC. Thirty years since its establishment, UGCC ranks highly, among the leading category 1 construction service providers, as classified by the Central Tendering Committee.Thus,UGCC is technologically equipped to handle government projects estimated over and above KD 1 million.

Despite its position of relative dominance, there is enough competition within the top group for the government to award contracts to the lowest bidder. UGCC has remained a forerunner in the adoption of the latest technology in undertaking infrastructure construction, evidenced by its use of micro-tunneling technology. Existing operations of UGCC beside being augmented by micro tunneling technology since 1992, has recorded consistent profits and relatively stable growth.

JHC, is established by a group of individuals who have proven commitment to hard work and the dedication to achieve continual success, as evidenced by the consistent performance of UGCC. The top managers have several years of experience in the construction industry and are also directly linked with the future of JHC as its shareholders.

Placement Details

The Investment

The “Investment” or the “Offering” described hereunder is of Jeeran Holding Company K.S.C.(Closed), also referred to as “JHC”. JHC’s capital is KD 13,000,000 divided into 130,000,000 shares of 100 fils each. The offering is pursuant to the offer for sale by existing shareholders shares of 100 fils each at 525 fils per share. The current shareholders would retain 106,500,000 shares.

The Company

JHC was incorporated in June 2001 as a holding company under the Kuwaiti law pursuant to
the Articles of Incorporation duly authenticated at the Ministry of Justice – Authentication and RealEstate Department under reference No. 1892/Vol. 1.

Jeeran Holding Company was incorporated in 2001 as a holding company under the Kuwaiti laws.

• JHC objectives are:
  Ownership of shares of shareholding companies or establishing, monitoring and sponsoring such companies.
• Financing and sponsoring entities in which the Company has an ownership interest.
• Ownership of movable assets or real estate required to pursue the Company’s activities within the limits acceptable by law.
• Utilizing available surplus funds by investing such funds in portfolios managed by specialized parties.