CmaBoardReleases
Title: Press Release: The Capital Markets Authority Issues its Eleventh Annual Report
Kuwait, July 23, 2022 – The Capital Markets Authority recently issued its eleventh annual report for the financial year (2021-2022), in which it presented its most prominent tasks accomplished in its various fields of work.
It is noteworthy that the report dedicated a separate section of its ten sections to sustainability, which has become a top priority for societies to face the various challenges: environmentally, health, socially and, of course, economically. It also presented its vision in sustainability, and its pillars of financial inclusion, financing sustainability, digital transformation and governance. It also demonstrated its paths starting with institutional sustainability, sustainability of the securities activities sector, and societal sustainability.
Prof. Ahmed A. Al-Melhem, Chairman of CMA Board of Commissioners, presented in his message the most prominent efforts of the CMA to achieve its vision in reaching leadership in developing attractive and supportive financial markets for the national economy, and pointed out that 84% of the CMA’s current strategy was implemented a year before its end date, noting that the most prominent directions of its strategy for the years (2023/2024 to 2026/2027), which are currently in the final preparation phase. Prof. Al-Mulhem also noted the CMA’s initiatives in terms of sustainability and financial inclusion with its various pillars, in particular the field of innovative financial products and projects related to digital transformation and financial technologies, along with the CMA’s adoption of a national project for financial inclusion. As for corporate governance and distinction, Prof. Al-Mulhem pointed out that the CMA ranked first in the ranking of entities with independent budgets subject to the supervision of the State Audit Bureau in terms of meeting the requirements of governance by 92.2%, and that the CMA obtained the ISO/IE 27001:2013 certificate in terms of information security.
In another context, Prof. Al-Mulhem pointed out that the CMA - in a precedent that may be the first of its kind among the regulatory and supervisory authorities - has set key operational performance indicators for the main business and services for those concerned from individuals and entities subject to its supervision, and it has measured these indicators by analyzing them and announcing the results of its evaluation for the year 2021.
It should be noted that the last annual report of the CMA, which exceeded two hundred pages, included ten main sections, which began by defining the CMA’s vision, mission, objectives and institutional values, followed by a statement of the performance of CMA’s Board of Commissioners and the work of the Secretariat Office, the strategic field, then the achievements of the committees, boards and offices that form as part of the Board of Commissioners, Section 6 was the most prominent in the report, as it included a comprehensive presentation of the most prominent tasks of the CMA realized in various aspects (legislative, regulatory, supervisory, awareness and those related to local, regional and international cooperation). The report then reviewed the most prominent tasks achieved in the internal work environment, before presenting in a special section the visions and trends for the future. The report also presented the CMA's financial statements for the financial year that is the subject of the report, to conclude with a comprehensive presentation of the most prominent trading indicators of Boursa Kuwait of 2021.
In the language of numbers, we can refer to the most important tasks implemented through specific numbers, for example, the Board of Commissioners held 52 meetings to discuss 394 topics and took 427 decisions. As for the strategic plan, the related figures indicate that 80% of its time period has elapsed and the implementation of 84% of its projects and development activities (8 projects out of 18 projects were completed and 118 out of 159 development activities were completed). As for the legal field, the figures indicate that a legal opinion was given on (1,145) subjects, 172 cases were registered, and 212 violations were investigated.
On the regulatory side, the statistics indicate 77 licensed persons and 237 licensed activities, the issuance of 113 resolutions and circulars related to licensing activities, and the processing of 1,452 applications for registered employment and positions. As for the data related to collective investment schemes, it refers to 62 schemes with a total capital of 2,056,936 thousand Kuwaiti Dinars, and net assets of 2,600,394 thousand Kuwaiti Dinars.
In terms of corporate finance, the statistics indicate 36 approvals for capital increase, 8 approvals to reduce capital, 24 approvals for a prospectus, 142 approvals for renewing the right to deal in treasury shares, and 10 approvals for issuance of debt instruments that varied between bonds and sukuk with a value exceeding five billion five hundred million USD. As for merger and acquisition activity, the last financial year witnessed the implementation of three operations whose value exceeded one million three hundred thousand Kuwaiti Dinars, and approval was granted for a fourth operation, bringing the cumulative value of these types of activities to exceed the barrier of one and a quarter of a billion Kuwaiti Dinars.
In the supervisory field, the data indicate the implementation of 300 tasks related to the on-site supervision, and the study of 525 financial statements and reports, in addition to presenting the statistical and financial data of the entities subject to the CMA’s supervision from listed companies, licensed investment companies, and brokerage firms licensed to practice the activity of a securities broker registered with the Securities Exchange.
In the section of future visions and trends, the report presented the most prominent future directions of the CMA, whether those included in the framework of achieving the development vision (Kuwait 2035), or in the government’s work programs and the development of government performance, or those aimed at improving the efficiency of the local investment environment, in addition to initiatives related to the tasks of the various legislative, regulatory, supervisory, awareness, and other entities.
Finally, as the CMA announces the issuance of its eleventh annual report, it draws the attention of those interested in economic affairs in general, and those concerned with securities activities and services in particular, that the report may be viewed through this link, on CMA’s website www.cma.gov.kw , in addition to its application for smartphones.
Ends-
Notes to Editors:
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010. Pursuant to the Law, the CMA shall regulate and supervise the securities activities, achieve transparency and fairness, observe listed companies’ execution of Corporate Governance regulations, and protect investors from unfair practices which violate the CMA's Law.
Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs related to securities activities.
For further information, please contact:
Public Relations & Media Office
Tel: 22903062
Fax: 22903505
Email: pr-media@cma.gov.kw