3 days ago
CMA adds a new chapter to Kuwait capital market's growth story
KUWAIT: The Capital Markets Authority's (CMA) decision No (101) of 2025 regarding the launch of the second part of the third phase of the Capital Market System Development Program (CMSDP) will come into effect, thus opening a new chapter in the development of the Kuwaiti capital market.
This phase represents an extension of the previous phases of the program, but what distinguishes it is the depth of changes that fundamentally affect the infrastructure of the capital market, reflecting the CMA's commitment to implement Law No (7) of 2010. Since the issuance of Resolution No (101) of 2025 last June, the CMA has worked to complete all the necessary procedures to launch this phase, including issuing the required licenses. Among the most notable of these procedures is the granting of the license to practice the activity of a central broker to the Kuwait Clearing Company, making it the first entity in the Kuwaiti market to engage in this activity.
The granting of this license is an important step in the development of the market, as it reflects the CMA's commitment to implement the provisions of Law No (7) of 2010, especially since this activity is being practiced for the first time despite the fact that it is one of the activities provided for the Clearing Company.
In a related context, ten brokerage firms were upgraded to the 'Qualified Broker' model, which enhances their ability to provide a wider range of financial services and products to their clients within the capital market system. The technical systems for offering bonds and sukuk as well as ETF indices, have been developed and tested, and draft amendments to the executive regulations of Law No (7) of 2010 have been prepared in preparation for the launch of these products in the market.
It is expected that this approach will contribute to diversifying and expanding the range of financial services and products available on the stock exchange, thus enhancing the attractiveness of the market to investors. Work is also underway to finalize the necessary regulatory rules to enable the concerned authorities to carry out these operations efficiently and effectively.
On the supervisory side, this phase included the establishment of sub-account numbers within the consolidated accounts, whether for investment or electronic portfolios, which increases the efficiency of the authority's supervisory work on Boursa Kuwait's trading.
Emad Ahmed Tefouni, Chairman of the Board of Commissioners and Chief Executive Officer, said: 'The Capital Markets Authority (CMA), represented by the Board of Commissioners and all its employees, is very pleased to launch the second part of the third phase of the Capital Market System Development Program, which is a new achievement added to the CMA's track record of development initiatives. This program is one of the pivotal strategic projects of the CMA, as it consists of four vital projects that contribute to enhancing the efficiency of the market.
The CMA extends its sincere thanks and appreciation to the Central Bank of Kuwait, Kuwait Clearing Company, Boursa Kuwait, brokerage firms, and all stakeholders and teams involved in the implementation of this program inside and outside the CMA, for their sincere efforts and fruitful cooperation that had a great impact in achieving this achievement.
Tareq Abdullateef AlShehab, Member of the Board of Commissioners stated the following: 'The completion of the third phase of the Capital Market System Development Program is an achievement to be added to the CMA's track record of development initiatives. This phase is characterized by its outputs that had a significant impact on the market structure, which included the launch of the 'Central Broker' service and the implementation of the 'Qualified Broker' model, in addition to the qualitative changes in the work mechanisms of the relevant authorities, such as the completion of cash settlements through the Central Bank of Kuwait system and settlement banks, and the establishment of the financial collateral chain.
'On this occasion, CMA extends its sincere thanks and appreciation to the Central Bank of Kuwait, Kuwait Clearing Company, Boursa Kuwait, all brokerage firms, custodians, investment firms, and all those working on the program's projects in the various participating entities.'
In this context, CMA emphasizes that the launch of this phase does not represent the end of the development process, but rather a launch towards broader horizons and more comprehensive plans aimed at upgrading the capital market system and enhancing its efficiency and robustness, in line with the aspirations of the State of Kuwait in the financial and economic field.'
