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Arab News
3 days ago
- Business
- Arab News
Kuwait unveils major capital market reforms to boost efficiency, attract global investments
RIYADH: Kuwait has introduced a central counterparty clearing framework, upgraded brokerage standards, and streamlined settlement systems as part of a sweeping reform to modernize its capital markets and boost investor confidence. The measures, launched as part of the second stage of Phase Three of the Market Development Program, include introducing sub-account numbering to enhance transparency, as well as upgrading IT infrastructure to support future listings of exchange-traded funds and fixed-income instruments such as bonds and sukuk, according to a press release. Led by Kuwait's Capital Markets Authority in coordination with Boursa Kuwait and the Central Bank of Kuwait, the reforms aim to align the country's financial market infrastructure with global standards while reducing risk and enhancing market depth. The Market Development Program is a strategic initiative under the country's Vision 2035 plan, aimed at diversifying the economy, enhancing private sector participation, and modernizing key sectors such as finance, infrastructure, and technology. Mohammad Saud Al-Osaimi, CEO of Boursa Kuwait, said: 'The launch of this phase reflects our unwavering commitment to developing an advanced, efficient trading environment that meets the highest international standards.' He added: '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.' Boursa Kuwait Chairman Bader Nasser Al-Kharafi said that the 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. He added that these efforts are essential to attracting capital, generating added value for the national economy, and supporting the diversification of income sources. The measure introduced several key reforms, including the implementation of a Central Counterparty Framework to reduce settlement risks and align clearing processes with global standards. It also streamlined cash settlements through the KASSIP system, facilitating smoother transactions via local banks and the Central Bank of Kuwait. Additionally, brokerage firms were upgraded to 'Qualified Broker' status to enhance market structure, while sub-account numbering was introduced to improve transparency under omnibus accounts. Furthermore, IT infrastructure upgrades were made to prepare for the introduction of ETFs and fixed-income trading, including bonds and sukuk, pending necessary legislative changes. This phase marks one of the most significant overhauls since the privatization of Boursa Kuwait, reinforcing the market's role in driving 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. The CMA and Boursa Kuwait reaffirmed their commitment to further developing the market's infrastructure, supporting sustainable growth, and reinforcing Kuwait's status as a premier investment destination. Privatized in 2019, Boursa Kuwait operates one of the GCC's oldest exchanges, driving market modernization and emerging-market reclassification.
Al Bawaba
13-05-2025
- Business
- Al Bawaba
Boursa Kuwait and Kuwait Clearing Company promote Kuwaiti capital market developments to London's leading asset managers
As part of their ongoing efforts to support the development of the Kuwaiti capital market and elevate its position within the international investment community, Boursa Kuwait and Kuwait Clearing Company (KCC) organized a roadshow in London from May 12 to 13, 2025 in collaboration with Jefferies Financial Group, a world-renowned global investment banking and capital markets institution. The roadshow provided Boursa Kuwait and KCC with a unique opportunity to conduct focused one-on-one meetings with ten leading global investment management firms and advisory institutions. The delegation was led by Mr. Mohammad Saud Al-Osaimi, Chief Executive Officer of Boursa Kuwait, and Mr. Duaij R. Al-Saleh, Chief Executive Officer of Kuwait Clearing Company, who were joined by senior executives, including Boursa Kuwait Head of Markets Sector Noura AlAbdulkareem and Mr. Abdulkarim A. Al-Yaqout, the Director of Strategy and Product Development at the roadshow, representatives highlighted recent developments in the Kuwaiti capital market, promoting its growing range of investment opportunities and presenting updates on key infrastructure and service enhancements, to global investors from several world-renowned financial institutions, including progress on the forthcoming Central Counterparty (CCP) framework, which is set to launch alongside exchange-traded funds (ETFs) as well as a platform for fixed-income instruments including bonds and sukuk. The roadshow also served as a valuable forum for direct engagement with some of the world's leading financial institutions, enabling the delegation to exchange views, gather investor feedback on their experience in Kuwait and gain a deeper understanding of their expectations and requirements.'Boursa Kuwait remains focused on strengthening its ties with the global investment community, showcasing the progress of the Kuwaiti capital market and its growing range of opportunities to global capital. Over the past few years, the company has worked to build an integrated investment ecosystem with a solid market infrastructure, introduce investor-centric services and financial products tailored to international standards, while streamlining foreign investor onboarding to ensure a seamless and secure experience. This roadshow serves as a vital platform to promote the Kuwaiti capital market and foster deeper engagement with leading financial institutions, in line with Boursa Kuwait's efforts to position Kuwait as a prominent investment destination in the region,' said Mr. Mohammad Saud Al-Osaimi, the Chief Executive Officer of Boursa Kuwait. In collaboration with its partners in the Kuwaiti capital market apparatus, Boursa Kuwait is working on the launch of the Central Counterparty (CCP) framework, a foundational step in strengthening market infrastructure. Designed to enhance the efficiency, transparency and security of post-trade processes, the CCP serves as the counterparty to all transactions, ensuring safe and orderly settlements between buyers and sellers and will play a vital role in mitigating counterparty risk and aligning Kuwait's market operations with global standards in clearing and settlement. Commenting on the roadshow, KCC CEO Mr. Duaij R. Al-Saleh said, 'Our participation in this roadshow alongside Boursa Kuwait reflects our shared commitment to advancing the Kuwaiti capital market, elevating its stature in the region and the world and strengthening engagement with international investors. It provided a valuable platform to engage with world-renowned financial institutions to highlight our clearing and settlement infrastructure and share updates on strategic initiatives, such as the CCP framework, which will enhance post-trade efficiency, reduce counterparty risk and serve as the foundation for more advanced financial instruments and services.'As part of its ongoing efforts to strengthen market infrastructure and enhance the appeal of the capital market to foreign investors, the Kuwaiti capital market apparatus has introduced a series of enhancements and regulatory reforms to its clearing and settlement systems over the past few years, aligning them with the standards and expectations of leading global financial enhancements include the acceleration of trading account openings for foreign clients, which are now completed within a single business day. Similarly, the process for transferring accounts between custodians has been redesigned to match this timeframe, improving operational efficiency and execution speed, while the introduction of partial settlement rejection has given foreign investors greater flexibility in managing their investment addition, the omnibus account mechanism was introduced to further streamline order execution and reduce transaction volume, allowing institutional and foreign investors to execute trades through a single consolidated account, with shares allocated to individual beneficiaries immediately after a fully automated and upgraded version of the electronic general assembly meeting (eAGM) system has been launched. This system, which is mandatory for all listed companies, enables investors to participate and vote through multiple convenient digital key developments include an enhanced mechanism for foreign investor participation in initial public offerings (IPOs), aimed at boosting cross-border investment, as well as the introduction of a Securities Lending and Borrowing (SLB) framework which broadens the range of financial instruments available in the market and offers investors increased flexibility and strategic Kuwait and the KCC play a pivotal role in the development of the Kuwaiti capital market and the diversification of the national economy and have remained steadfast in their dedication to establishing a transparent, efficient and advanced exchange platform, which has led to the creation of a liquid capital market. Boursa Kuwait and the KCC's unwavering commitment to promoting the Kuwaiti capital market and its participants through a series of Roadshows and Corporate Days has also helped provide prospective institutional investors worldwide with profound insights into the market's opportunities. Since Boursa Kuwait took over operations of the Kuwaiti stock exchange, the Kuwaiti capital market has undergone an unprecedented development, thanks to the diligent efforts of the capital market apparatus. Their focus on empowering participants and raising standards has resulted in several key initiatives, including the diversification of products and services, establishing an appealing investment platform, expanding the issuer base, and adapting rules and regulations to meet market demands. The apparatus has also significantly enhanced the market's infrastructure and fostered an attractive investment environment, which resulted in the Kuwaiti capital market's reclassification to an Emerging Market by three prominent global index providers, and solidified Kuwait's position as a leading financial center in the region. © 2000 - 2025 Al Bawaba ( Signal PressWire is the world's largest independent Middle East PR distribution service.
