logo
Kuwait unveils pivotal capital market transformation to boost efficiency and attract investments

Kuwait unveils pivotal capital market transformation to boost efficiency and attract investments

Al Bawaba13-07-2025
Reaffirming its commitment to building a more efficient, attractive, and globally competitive market that meets investor ambitions and aligns with international best practices, the Kuwaiti capital market apparatus has launched part two of the third phase of its comprehensive market development program (MD 3.2).This phase included a series of core initiatives aimed at strengthening the operational and regulatory infrastructure as well as expanding the range of products and services in the Kuwaiti capital market. Led by the Capital Markets Authority (CMA) and in collaboration with the Central Bank of Kuwait, local banks, investment firms and brokerage companies, Boursa Kuwait and the Kuwait Clearing Company (KCC) delivered a variety of transformative products, services and infrastructure enhancements, including the introduction of the Central Counterparty (CCP) framework, which reduces risks and provides guarantees to advance clearing and settlement processes in line with international standards.Among the other enhancements are cash settlements through local banks and the Central Bank of Kuwait's KASSIP system; the upgrade of brokerage firms' operating models to 'Qualified Broker' status, marking a significant step forward in market structure; and the introduction of sub-account numbers under omnibus accounts, which will strengthen transparency and oversight.In addition, the technical environment and IT infrastructure have been fully prepared and upgraded, with comprehensive testing conducted with all relevant parties in preparation for the listing and trading of Exchange-Traded Funds (ETFs) and fixed-income instruments, including bonds and sukuk. Legislative updates for these products are expected to be introduced later.This milestone represents one of the most significant transformations in the market's history since the privatization of Kuwait's stock exchange. It aims to reshape the regulatory and operational infrastructure of the market, paving the way for the introduction of new instruments and investment products that will deepen market liquidity, enhance its breadth and reinforce its role as a strategic driver of national economic growth.Commenting on this achievement, Boursa Kuwait Chairman Mr. Bader Nasser Al-Kharafi affirmed that these developments represent a pivotal milestone in the continued advancement of Kuwait's capital market, reinforcing its position and competitiveness on both regional and international levels. He highlighted that this achievement also reflects Boursa Kuwait's steadfast commitment to supporting the State's ambitious vision of establishing Kuwait as a leading regional financial center that attracts investment, while working in close partnership with all stakeholders to implement a comprehensive strategic roadmap that accelerates market development and enhances its contribution to national economic growth.'We greatly value the remarkable efforts that have driven the various phases of the Market Development Program for Kuwait's capital market, a reflection of the power of constructive cooperation between the public and private sectors, which stands as a national model for realizing economic objectives and development ambitions rooted in innovation and professionalism," Al-Kharafi said."This collaboration has played a vital role in advancing market infrastructure and introducing sophisticated products and services that promote a more transparent and dynamic investment environment. These efforts are essential to attracting capital, generating added value for the national economy, and supporting the diversification of income sources,' he added.Al-Kharafi concluded by extending his sincere thanks to all parties who contributed to this achievement, saying: 'I would like to express my deep appreciation to the Central Bank of Kuwait, the Capital Markets Authority, and Kuwait Clearing Company for their continued support, which has played a vital role in strengthening market stability and enhancing its standards of transparency and governance. I also commend the cooperation of our partners in the financial sector, who remain a cornerstone in the ongoing development of Kuwait's capital market. Boursa Kuwait remains committed to providing an exceptional investment experience for all market participants and continuing the joint efforts to reinforce Kuwait's position as a leading financial hub in the region.'Boursa Kuwait led the efforts to prepare the market's infrastructure for the launch of this latest phase, which represents a significant operational milestone for the bourse and the capital market apparatus. The exchange was instrumental in implementing the technical framework in MD 3.2, as it continued upgrading the trading system, which will support the introduction of new products, strengthen market integration, and lay the foundation for future offerings such as derivatives. The upgrades also highlight the market's readiness to broaden its range of investment instruments and align its regulatory framework with world-class standards."The launch of this phase reflects our unwavering commitment to developing an advanced, efficient trading environment that meets the highest international standards," stated Boursa Kuwait's Chief Executive Officer, Mr. Mohammed Saud Al-Osaimi. "It is the product of close collaboration across the capital market apparatus and represents a key step in expanding the depth, transparency and resilience of Kuwait's capital market.''Alongside the enhanced capacity of our technical systems to introduce advanced financial instruments, MD 3.2 represents a major milestone in Boursa Kuwait's efforts to build a more diverse, robust and efficient financial market, underscoring our readiness to advance to the next stage once the relevant rules and regulations are in place, enabling both the public and private sectors to utilize flexible, effective financing solutions that drive sustainable economic growth,' he added.Al-Osaimi concluded his statement by saying, 'We take great pride in our ability to translate our strategic vision into tangible operational achievements that demonstrate the strong collaboration and alignment of roles across all components of our capital market. Boursa Kuwait remains committed to working closely with our partners at the Central Bank of Kuwait, the Capital Markets Authority, Kuwait Clearing Company and all stakeholders in the financial sector to further enhance market readiness, attract greater domestic and foreign capital and solidify Kuwait's position as a leading financial center in the region.'The launch of MD 3.2 marks a significant step in strengthening Kuwait's capital market and reinforcing its position as a leading financial hub regionally and internationally. It builds on a comprehensive reform journey aimed at broadening the range of investment products, improving the efficiency of the operational infrastructure and applying the highest standards of governance and transparency to meet investor expectations and enhance the appeal of the Kuwaiti capital market.This milestone reflects the successful realization of a strategic vision to build a resilient, secure and transparent capital market that enables issuers to access diverse financing tools and provides investors with more stable and varied opportunities.
The capital market apparatus remains committed to advancing infrastructure development and enhancing the investment environment, contributing to the national economy, advancing the UN's sustainable development goals and solidifying Kuwait's position as a pioneering financial center in the region and a destination of choice for capital from across the globe.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

SSIF total assets rise to JD17.3b in H1 2025
SSIF total assets rise to JD17.3b in H1 2025

Jordan Times

time2 hours ago

  • Jordan Times

SSIF total assets rise to JD17.3b in H1 2025

AMMAN — The Social Security Investment Fund's (SSIF) total assets increased by JD1.2 billion to JD17.3 billion as of June 30, representing a 7.2 per cent increase and one of the 'strongest' semi-annual performances in the fund's history. In the first half of 2025, SSIF delivered a 'pivotal' performance that underscored its evolving role as a cornerstone in Jordan's financial and economic system, according to an SSIF statement to The Jordan Times. The robust financial results were underpinned by a 119 per cent year-on-year increase in comprehensive income, which reached JD1.1 billion from JD487 million during the same period last year, the fund said. This comprised JD591 million in net returns from investment activities and JD473 million in unrealised gains on the revaluation of strategic equity holdings. An additional JD109 million in actuarial surplus was transferred from the Social Security Corporation, SSIF noted. Net returns from investment portfolios increased by 15 per cent compared to the first half of 2024, driven primarily by bonds of JD296 million, equities of JD207 million, and money market placements JD70 million, in addition to the income real estate and loans portfolios. The fund's share of dividend income from 2024 corporate profits exceeded JD191 million, the highest in its history, reflecting not only robust corporate performance but also the SSIF's rising influence within Jordan's capital markets. These dividends contribute to increased liquidity, enhanced investor confidence, and a more resilient investment environment, reinforcing the foundations for sustainable national growth. As of mid-year, 2025, the fund's portfolio was allocated as follows: bonds 57 per cent, equities 17.1 per cent, money market instruments 14.1 per cent, real estate 5.2 per cent, loans 3.3 per cent, and tourism assets 1.9 per cent. Chairman of the Investment Board Omar Malhas said that the fund's performance marks a 'turning point' in its institutional role; from a conventional asset manager to a proactive, long-term investor shaping national economic priorities. He underscored the SSIF's strategic shift through revised investment priorities, deeper integration in productive sectors, and a focus on high-impact initiatives such as the planned co-financing of the National Water Carrier Project, Jordan's most ambitious infrastructure undertaking to date. Malhas highlighted that this transformation is anchored in disciplined decision-making supported by rigorous financial and technical evaluations. SSIF's investment processes are calibrated towards long-term value creation, insulated from short-term volatility, and aligned with national objectives, he said. Malhas noted that the government's decision to prioritise SSIF as a core investor in flagship development projects signals confidence in the fund's institutional capacity to structure impactful, commercially viable partnerships. He pointed out that this strategic positioning enhances SSIF's stature as a driver of inclusive growth, while also reinforcing its relevance to regional and global investors seeking stable, mission-aligned opportunities. SSIF CEO Izzaldeen Kanakrieh stressed that the fund's 'strong' earnings continue to support sustained asset growth and broader institutional credibility. He described the current phase as one defined by a 'deepening of strategic partnerships,' backed by growing confidence from public and private sector stakeholders. Kanakrieh noted that SSIF operates under a forward-leaning institutional mandate that highlights the early identification and pursuit of high-impact investment opportunities. In recent months, the fund submitted expressions of interest to relevant ministries and national corporations to explore potential collaboration in proposed initiatives across the transport, education and mining sectors, the CEO noted. He added that these efforts are embedded within an integrated governance model consistent with SSIF's long-term vision and the broader goals of the Economic Modernisation Vision. By channelling capital into high-productivity, value-generating sectors, Kanakrieh said that the SSIF strengthens the resilience of the social security system while reinforcing national competitiveness. SSIF is currently updating its strategic plan for the coming years with the aim of responding to economic shifts and capitalising on emerging investment opportunities, said the statement. This includes a comprehensive reassessment of investment priorities, with renewed emphasis on channelling resources towards high-value, productivity-driven sectors. Through this integrated approach, SSIF continues to institutionalise performance excellence, align capital with strategic national priorities, and consolidate its position as a trusted long-term steward of public capital, delivering economic value, financial stability, and developmental impact for generations to come.

Jazeera Airways Unveils Mega Sale: 100,000 Seats from Just KD 14
Jazeera Airways Unveils Mega Sale: 100,000 Seats from Just KD 14

Al Bawaba

time5 hours ago

  • Al Bawaba

Jazeera Airways Unveils Mega Sale: 100,000 Seats from Just KD 14

Jazeera Airways today announced a significant Mega Sale, offering customers an impressive 100,000 seats at highly competitive fares. One-way flights will be available starting from just KD 14. This initiative underscores Jazeera Airways' ongoing commitment to providing accessible and affordable travel options across its extensive Carroll, Chief Commercial Officer, Jazeera Airways, commented: 'We are incredibly excited to launch this Mega Sale, designed specifically to broaden travel opportunities and enhance convenience for even more of our customers. By making 100,000 seats available at such remarkable fares, we are actively making the dream of a getaway or an important trip a more attractive and achievable reality."This limited-time sale runs from July 27 to 31, and is valid for travel between August 1 and September 30, a wide range of destinations across the Middle East, Asia, and Europe, Jazeera Airways invites travelers to take advantage of these exceptional fares and enjoy a seamless travel experience with Kuwait's leading low-cost carrier. Bookings can be made conveniently via the official Jazeera Airways website, or through the Jazeera Airways mobile application. © 2000 - 2025 Al Bawaba ( Signal PressWire is the world's largest independent Middle East PR distribution service.

Cabinet amends vehicle plate bylaw to boost transparency, student aid
Cabinet amends vehicle plate bylaw to boost transparency, student aid

Jordan Times

time6 hours ago

  • Jordan Times

Cabinet amends vehicle plate bylaw to boost transparency, student aid

AMMAN — The Cabinet on Saturday approved an amendment to the vehicle plate bylaw aimed at increasing transparency and supporting higher education funding. Under the new regulations, government, temporary import, and diplomatic vehicle plates will feature clear letter codes indicating the entity to which the vehicle belongs, the Jordan News Agency, Petra, reported. The designated codes include: PM for the prime minister and ministers, SN for the Senate, PR for the Lower House, JC for the Judicial Council, GV for government entities, AQ for the Aqaba Special Economic Zone Authority, CD for diplomatic missions, and TM for temporary imports. The Drivers and Vehicles Licensing Department will oversee the implementation procedures for government vehicle plates, and this amendment will not affect the numbering system for private, public, or cargo vehicles. In a move to bolster education funding, the Council of Ministers also decided to allocate all revenues generated from the auction of distinctive vehicle plate numbers, regardless of their coding, to the University Student Support Fund. This measure, effective from the upcoming academic semester, supplements the fund's existing budget, which the government increased by 50 per cent this year to reach JD30 million. The decision will expand the number of university students who benefit from the fund, Petra added. Replacing numeric codes with letters is expected to improve clarity, transparency, and the ability to monitor and track government vehicles more efficiently. The letter-based system is already in use in several countries and is regarded among the best practice globally. The new bylaw also allows for buying and selling vehicle plates without requiring the transfer of vehicle ownership, streamlining administrative procedures.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store