As we reflect on the past year and look ahead to new opportunities, it is my and my colleagues in the board of directors’ pleasure to share and discuss with you Coast Investment and Development Company’s annual report for the fiscal year ending on December 31, 2025.

The year 2025 was marked by steady global economic expansion amid continued monetary policy easing in major advanced economies, although geopolitical tensions, trade policy shifts, and regional variations created periods of uncertainty. Global GDP growth reached 3.2%, slightly above prior expectations, supported by resilient emerging markets and stable demand in advanced economies. Global inflation averaged 3.7% (5.4% in 2024) , driven by lower energy costs, resolved supply constraints, and the cumulative impact of earlier restrictive policies, though it remained elevated relative to pre-pandemic levels in some areas. Central banks have advanced rate normalization. The US Federal Reserve continued cuts, ending 2025 with the federal funds rate at 3.50–3.75%. The European Central Bank maintained its deposit facility rate at 2.00%, adopting a steady approach as inflation moderated. Emerging market rates averaged near 6%, with adjustments to protect currencies. In the GCC, rates closely followed US movements due to currency pegs, with the Central Bank of Kuwait holding its discount rate at 4.00% for most of the year.

The United States demonstrated sustained strength in 2025, with real GDP growth around 2.1%, bolstered by consumer spending, technology investment, and a solid labor market. Inflation averaged 2.7%, nearing the Federal Reserve’s target and affirming the effectiveness of prior policy measures. Corporate earnings grew robustly, especially in growth sectors, supporting market confidence despite occasional fiscal and trade-related concerns.

In Europe, growth was subdued at approximately 1.5%, affected by energy dependencies, industrial challenges in key economies, and external risks. Germany recorded modest growth near 0.3%, while southern European economies gained from tourism and investment. Inflation settled at around 2.1%, permitting continued accommodative stance. The region averted recession, highlighting underlying resilience.

The GCC region achieved GDP growth of 3.3% in 2025, fueled by gradual hydrocarbon recovery as OPEC+ adjusted quotas, diversification progress in tourism, logistics, and renewables.

In Kuwait, the economy grew by 2.6%, recovering from the previous contraction. Growth was driven by OPEC+ production increases in the second half and non-oil expansion around 2.7%, supported by public projects and private activity under Vision 2035. Inflation was contained at approximately 2.4%, aided by subsidies and the dollar peg.

Coast has recorded a net profit of KD 530,146 for the year ended 31 December 2025, with earnings per share of 1.14 fils and  achieved a 2.12% growth in revenue, while total expenses declined by 4.77%, resulting in a 21.31°/o increase in net profit compared to the previous year. This improvement reflects effective cost management and operational efficiency across the Company. Portfolios, funds, and unlisted investments performed strongly, generating total income of KWD 1,689,518, representing a significant 83.02% increase year-on-year. However, Coast  was impacted by the performance of associate investments despite positive underlying operational results. The Company recorded a share of loss from associates amounting to KWD 2,650,124, primarily attributable to a EUR 35.5 million restructuring program undertaken by one of the associate companies (with Coast’s prorated share amounting to approximately KWD 3.13 million). This restructuring initiative is expected to enhance operational efficiency and profitability of the associate in the future. Notwithstanding the above, based on improved business outlook and revised estimates of recoverable value, Coast has recognized a reversal of impairment provision amounting to KWD 2,180,552 relating to its associate investments.Shareholders’ equity increased to KWD 50,259,292 during the year from KWD 47,057,464 in the previous year, representing an improvement of 6.8%. This increase was primarily attributable to the profit recorded during the year, together with favorable foreign exchange movements relating to the Company’s Euro-denominated investments.

On this occasion, I would like to extend my sincere appreciation to the shareholders of the company, the board members and all the staff at Coast for their continued and unwavering support.  We remain hopeful that Almighty Allah will continue to bestow more success on Coast in the future.

May Allah protect Kuwait and its people from all evil and may the peace and blessings of Allah be upon you.