Kuwait-based logistics firm Agility, which is accused of a multibillion dollar fraud in its dealings with the US Army in Iraq, expects 2011 to be a difficult year with net profit declining in 2010, its chairman said.

“We are going forward. The next year or so will be a difficult year for the company as it seeks to transition completely away from military business (to commercial),” Tarek Sultan said at the Reuters Middle East Investment Summit.

Agility, formerly Public Warehousing Co, was dropped from supplying food to the US Army in Iraq, Kuwait and Jordan after being accused of overcharging the military.

The company held contracts worth $8.5 billion spanning more than three years.

“We are trying our best to resolve this matter amicably,” Sultan said, adding that he sees the company’s legal position as ‘very strong’.

Agility sees ‘tremendous’ growth opportunities in emerging markets including India, China, Brazil and Egypt, Sultan told the Middle East Investment Summit held at the Reuters office in Kuwait.