Press Release on Kuwait’s Exchange Privatization Journey

The Capital Markets Authority (CMA) has announced on its website the issuance of its report on Kuwait Stock Exchange’s entity privatization journey 2010-2020. Topics of this report included various aspects of the journey of this important and vital entity, which performed a crucial role in the development of Kuwait’s capital market, and a persification of the national economy, in line with New Kuwait Vision 2035.

The report starts by giving a brief about the past with a historical glimpse on the securities market in Kuwait. Next, the report mentions the project of Kuwait Development Vision 2010-2035. Kuwait has taken, within the framework of this vision, decisive actions to persify the economy, improve the business and investment environment, and promote the private sector’s role, as these are considered fundamental elements. It has made great strides towards the economic reform, in order to promote the private sector’s role, improve the Exchange and amend laws such as insurance, competition protection, the companies law, partnership between public and private sectors, as well as privatization.

The report’s sections cover in detail the topics of its four main chapters, as follows:

1. Chapter One: Most important chronological events throughout the course of Kuwait Stock Exchange activities.

2. Chapter Two: Privatization of Kuwait Stock Exchange.

3. Chapter Three: Phases and Procedures for Privatization of Kuwait Stock Exchange.
• First phase - before incorporation of Boursa Kuwait Company.
• Second phase - Incorporation of Boursa Kuwait Securities Company.
• Third phase - Transferring business and tasks, and official license.
• Fourth phase - Offering and allocation of the capital shares of Boursa Kuwait Securities Company.

5. Chapter Four: Upgrading the State of Kuwait to the status of emerging markets.

Moreover, it shall be noted that the remarkable success in accomplishing the privatization project of the Exchange and its promotions has a special importance for several reasons. On top of these reasons is that it is a leading local experience, as this project is considered the first and most important privatization process for one of the most important economic entities in Kuwait, where the ownership transferred from the public to the private sector. Additionally, this experience had basic factors that makes it an example to be followed, starting from the nature of its institutional operations that did not change with the change of committees and successive boards. The eagerness on accomplishing the tasks on the specified dates facilitated completing the project in record time in accordance with the required standards. On the other hand, by this accomplishment the CMA strengthens its approach in cooperation with its partners in the capital markets as part of its philosophy in considering its role as a developing partner rather than a supervising regulator. Depending on the national cadre is another factor which makes this accomplishment an exceptional success. The last and most important consideration that gave this project an exceptional importance as mentioned is the fact that it a fulfillment of economic, development and legal requirements at the same time.

At the end, the CMA would like to express its gratitude to all former ministers of commerce and industry who held tenure during this era, and to all CMA former and present board members, and to the sincere efforts of the national cadre who took part in various committees and taskforces concerned with the phases and procedures of privatizing Kuwait Stock Exchange, and the entire employees at the CMA that participated actively in this historical accomplishment. The CMA would also like to appraise the efforts of the partners in the capital markets. This counts as an accomplishment to the CMA and its cadre in particular, and to the State of Kuwait in general. This vital entity; Kuwait Securities Exchange, is considered a corner stone in the national and financial economy of the State of Kuwait. Moreover, this accomplishment has a direct positive impact on the national economy, that will gain the investors’ trust. It will contribute in making Kuwait a financial and commercial hub, which is an implementation of Kuwait’s strategic vision 2020-2035, by granting the private sector a bigger part, as it is considered the engine of development.