GCC Brief - Gulfbase

May 22, 2011 - In a new privatization initiative, the government will be launching a public private partnership (PPP) company in the coming months. The Kuwait Health. Assurance Company (KHAC), already envisioned in. Kuwait's 5-year development plan, aims at privatizing expatriate health insurance and the associated ...
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GCC Brief 22 May 2011 Commentary

Stock market data: 105

GCC S&P stock market index, 2010-11

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Kuwait Health Assurance Company: a step forward for privatization in Kuwait

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Kuwait Health Assurance Company (KHAC) is a PPP project envisioned in Kuwait’s current 5-year development plan, and aims to privatize expatriate health insurance and its associated medical care. The project also includes building and operating 3 new hospitals and 15 health clinics.

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The company could be the largest of its kind in the Middle East, with an expected capital base of KD 318 million and almost 8,400 full time employees.



Successful start could help speed up other PPPs and projects under the development plan and have a positive effect on confidence and the economy.

Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11

by Wajih Boustany, Economist, +965 2259 5356 [email protected]

Oil market data: 130

Crude oil prices, 2010-2011, USD pb

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WTI OPEC

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IEA 2011 forecasts (mbd): World oil dd = 89.2 (+1.5%) Non-OPEC supply = 53.7 (+1.5%) Latest GCC monetary data: (18st May unless otherwise stated)

Bahrain:

M3 9.8 %y/y (Mar) Repo rate 2.25% $1=BHD 0.377

Kuwait:

M2 5.3 %y/y (Mar) Disc. rate 2.50% $1=KWD 0.276

Oman:

M2 5.4 %y/y (Mar) Repo rate 2.00% $1=OMR 0.385

Qatar:

Saudi Arabia:

UAE:

M2 11.8 %y/y (Mar) Lend. rate 5.00% $1=QAR 3.642 M3 13.8 %y/y (Mar) Repo rate 2.00% $1=SAR 3.750 M2 11.6 %y/y (Mar) Repo rate 1.00% $1=AED 3.673

Chart

Focus on…GCC oil output 16.0 15.8 15.6 15.4 15.2 15.0 14.8 14.6 14.4 14.2 14.0

GCC crude oil output (million barrels per day)

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16.0 15.8 15.6 15.4 15.2 15.0 14.8 14.6 14.4 14.2 14.0

GCC crude oil output has jumped by around 7% in recent months, in response to both higher oil prices and the need to replace lost Libyan output. Further rises seem likely this year.

Source: OPEC / national sources

Data

Financial and economic data NBK Economic Research Al Shuhada Street, P.O Box 95, Safat 13001, Kuwait City, Kuwait Tel: +965 2259 5500 Fax: +965 2224 6973 www.nbk.com

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GCC Brief | 22 May 2011

Kuwait Health Assurance Company: a step forward for privatization in Kuwait In a new privatization initiative, the government will be launching a public private partnership (PPP) company in the coming months. The Kuwait Health Assurance Company (KHAC), already envisioned in Kuwait’s 5-year development plan, aims at privatizing expatriate health insurance and the associated medical care. The company will be the first of several such PPPs to be formed under the current 5–year plan. The government is currently seeking a strategic investor for a 26% share of the company. The government will retain a 24% share and offer the remaining 50% stake to Kuwaiti nationals in a public offering.

Chart 1: Expatriate population in Kuwait 3.0

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0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 million, LHS

%y/y, RHS

Sources: Public