UIC's strategy is based on diversifying investments in promising industrial sectors, locally and regionally.
The company constantly develops available operational investment opportunities in line with UIC's long-
term investment plan. Al Qurain Petrochemical Industries Company is a pioneer in the petrochemical
industry, and is one of UIC's most important investments. Al Qurain also enjoys liquidity and a solid
solvency base, as well as other competitive factors that qualify the company for future opportunities in
Al Qurain's investment base is focused on a series of premium investments, it holds 6% stake in
EQUATE Petrochemical Company, which is a one of the leading companies in the Middle East. EQUATE
commenced commercial production in 1997 and has made astounding results year after year. Al Qurain
also holds 6% percent stake in Kuwait Olefins Company, which is another promising company in the
petrochemical sector that commenced commercial production in 2009 and has made significant profits.
Furthermore, Al Qurain holds 20% stake in Kuwait Aromatics Company, which in turn holds 57.5% of
Kuwait Styrene Company and 100% of Kuwait Paraxylene Production Company. Al Qurain also holds a
41.5% in United Oil Projects, which is currently establishing the GC-16 project in partnership with Al-
Khorayef Company from Saudi Arabia. All indications point to good prospects for Al Qurain's projects in
the upcoming period
Project management efforts throughout the year focused on monitoring existing investments,
especially Kuwait Aromatics Company. Commercial operation for this project commenced in early
2010, and recorded negative results that Al Qurain had to bear a percentage of. The management
also continued to seek and evaluate available investment opportunities in line with the company's
long-term investment strategy, taking into account the importance of diversifying investments across
several petrochemical sectors in order to cover a larger area and to benefit from geographic expansion
opportunities. Al-Qurain is actively looking for new investment opportunities within the Gulf and Middle
east in co-operation with world leading investment banks and consultants.
The price of polyethylene witnessed additional increase in 2011, which is positively impacting the
performance of EQUATE and The Kuwait Olefins Company. In turn, this will definitely have a positive
impact on Al Qurain's results in the coming year.
Al Qurain's incurred a loss of KD 1.9 million in 2010 compared to a profit of KD 7.1 million in 2009. Cash dividends received from EQUATE dropped 35% to KD 7.5 million due to the reduction in the company's revenues during the year. Al Qurain's share of losses from associate companies increased 72% to KD 9 million. This sharp increase in loss is mainly attributed to operational startup costs the subsidiaries Kuwait Aromatics Company had to bear because of the increase in cost of raw materials (feedstock) from Kuwait National Petroleum Company and the international drop in the price of paraxylene, which squeezed the gap between them. This is besides the cost overrun of constructing a paraxylene plant,However, in its first Quarter of 2011 Al-Qurain recorded an earnings of KD 18.16 million and expected to continue through to the end of year.