This shows the focus on Islamic finance due to the demand. When to comes to investment firms in Kuwait, the number is much larger. According to a report by Capital Standards (2010), there are 100 investing companies in Kuwait. The focus on Islamic finance in investment firms is also high as 54 of the 100 firms follows Islamic finance. Of these 51 of these are publicly listed in the Kuwait Stock Exchange. Kuwait economy is relatively stable. The country relies heavily on its oil production and exports and over 80% of the country’s revenue comes from oil.
During 2009 he oil prices decreased and hence there was a economic crisis and this was sorted out by government intervention and providing a stimulus packing of KWD 1.5 billion as a means to stabilize the financial sector. This crisis hit the investment sector as well and there was a loss of KWD 864 million in this sector. The reports by Capital Standards (2010) also states that companies such as Dar Investment and Global Investment House were hit heavily by this crisis and faced major debt repayment problems.
This upheaval caused lack of major problems in the market and customers started to lose their confidence in the market and this lead to slow trading activities especially in the securities of investment firms. This impacted further decline in the asset value. But prior to the financial crisis, the investment firms were doing well and between the years of 2003 to 2007, there was strong growth in this sector. Kuwait has the largest number of investment firms than the other nations in the Gulf Cooperation Council (GCC).
Based on the research, Capital Standards (2010) provides the following recommendations for the investment firms. They recommend that investment companies should reassess their business model and there is need for the investment firms to diversify and identify stable sources of income. Investment firms need to focus on customer needs and create products and services that match customer needs and expectations. This is an overview of the financial and investment structure in Kuwait. 2 RATIONALE FOR SELECTION OF TOPIC Davenport and Prusak (1998) dispute that while transferring knowledge is the objective; the technique used needs to suit the social processes and organizational culture.
Moreover, De Long and Fahey (2000) assert that various contextual dimensions shape the mindset of people and their consistent relationships. They go on to argue that, sharing of knowledge is frequently not natural as individuals ascertain that their knowledge is important and valuable.