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The Public Warehousing Co, in collaboration with Al-Mal Islamic Co., has launched a new financing product called "Al-Khazen Portfolio". The first of its kind in Kuwait and the Middle East markets, Al-Khazen is administered by Al-Mal Co. while PWC assumes the responsibility of "Custodian".
The Portfolio aims to support local and foreign trade, as well as present new alternatives to traditional lending which had always depended on fixed assets as collateral.
The Portfolio is based upon extending finance against legal pledge of goods deposited with PWC, which will help to finance smaller enterprises which are likely to have difficulty in accessing suitable funding due to lack of traditionally accepted collateral. The fund may also enable the financing of seasonal merchandise, storing it until the sales season and utilizing it to generate cash flow. Sales discounts and better prices from the supplier will also be possible due to importing larger quantities.
The Portfolio will make available to its customers, through PWC, suitable storage areas as well as comprehensive logistics services ranging from placing purchase orders, dockside services, handling and clearing through transportation, inventory management and control up to distribution to the end user. All this using professional up-to-date methods and state-of-the-art technology and equipment.
PWC, licensed by the Ministry of Finance as 'Bonded Warehouses', also offers its clients the opportunity of deferring payment of customs duties while the goods are in storage within PWC until they are actually distributed in the local market. Goods which are re-exported outside of Kuwait are exempt from paying customs duties.
In launching "Al-Khazen Portfolio" the Public Warehousing Co. has recognized an excellent opportunity for collaboration with Al-Mal Islamic Co. in order to create a fresh financing product that is completely new to lending circles in Kuwait and the Middle East and available to a broad sector of customers.
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