The Financial Times published an article a few days ago about investment companies in Kuwait. In that article Mr. Jassim Al Sadoun of Al Shall Research and Consulting was quoted saying that in 2011 we won’t see half of the more than 100 investment firms in Kuwait. He basis his conclusion on the fact that most of the investment firms are highly leveraged and lack sufficient assets.
In my opinion, the crisis sent a wake-up call to us here in Kuwait, and it revealed some “dirty laundry”. It separated the men from the boys. What will happen is a healthy dose of survival of the fittest, and apparently according to Mr. Al Sadoun, the fittest are a lowly bunch of less than 50% of investment firms in Kuwait. I hope that what has happened will teach people that there is no such thing as easy money, and leverage is coupled with high risks. People should learn to always manage their risk, and never get too overly exposed.
For your reference, the link of the article discussed:
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