Title: Press Release: The Capital Markets Authority Concludes Implementing its Second Strategy

Kuwait, July 8, 2023- The Capital Markets Authority (CMA) has concluded the implementation of its second strategy strategic plan, which extended from the financial year 2018/2019 to the financial year 2022/2023 (explanatory image on page 1 of the attached visual presentation). The strategy aimed to upgrade the Kuwaiti financial markets to become leading regional markets with attractive international extents and supportive of the national economy.  It also focused on strengthening the supervisory and regulatory system to be supportive of attractive and competitive capital markets in the State of Kuwait, based on the principle of fairness, transparency and integrity and keeping pace with international best practices through the continuation of development and distinction and moving forward in raising the efficiency of capital markets in its various legislative, regulatory, supervisory and controlling aspects, in cooperation with all other relevant authorities, and pursuant to the competencies stipulated in its establishment law. This strategy was built on three pillars (the pillars are shown on page No. 2 of the visual presentation) and included four main aspects, each of which included a set of strategic objectives (the pillars and aspects are on page No. 3 of the visual presentation) The CMA pursued to achieve them through various initiatives (the initiatives are shown on page No. 4 of the visual presentation).

The CMA’s role is directly and indirectly related to contributing to the vision of the State of Kuwait 2035 and the elements of transforming the State of Kuwait into an attractive financial and commercial center for investment. The CMA, through its second strategy, worked on establishing an attractive investment environment through control and supervision of financial markets and the development of the appropriate legislative and regulatory structure according to the best International practices, in addition to the practice of its awareness and educational role to create a safe and attractive environment characterized by fairness and transparency to be a reason for localizing investments and creating opportunities to attract foreign funds and investments and placing the financial markets sector in the State of Kuwait within the international investment map. The CMA also strengthened its efforts to consolidate the principles of governance, considering it a basic requirement to ensure the development of the public sector and one of the elements of sound leadership, administrative, financial, and institutional reform intended to promote the principles of justice, transparency, disclosure and accountability.

By the conclusion of CMA’s second strategy on March 31, 2023, the completion rate of the entire strategic plan reached 91% by calculating the average percentage of completion of all projects and development works after the expiration of 100% of the period of the strategic plan, which is for a period of five financial years ending on 31/3/2023. The percentage of deviation in the plan between actual and planned completion rate is within acceptable limits, taking into account the continuation of timelines for a number of projects and development works within the CMA's third strategic plan (summary of plan completion on page 5 of the visual presentation). According to the components of the CMA's strategic plan, the completed development works amounted to 150 out of 160, and the number of completed projects reached 8 out of 19 projects (the components of the plan are on page 6 of the visual presentation).

It should be noted that the CMA has pursued, since its establishment, to working on developing the legislative and regulatory structure and diversifying investment tools in the capital markets, in addition to enhancing investor confidence, consolidating the principles of governance and raising the level of disclosure and transparency in the financial markets. These efforts, in cooperation with the CMA's strategic partners, resulted in the promotion of the financial markets in the State of Kuwait during the period of the second strategic plan to emerging markets among the most important global financial indicators such as MSCI, Dow Jones, S&P and FTSE Russel. These promotions led to placing the State of Kuwait within the international investment map and receiving billions of foreign inflows in the local market. The CMA also achieved an unprecedented accomplishment in involving the private sector in economic development through the CMA's leadership of the first privatization process in the country by transferring the first government facility to the private sector, where Boursa Kuwait Company becomes the first securities exchange in the Middle East owned by the private sector.

On the internal level, the CMA has worked on developing the efficiency of operational work, in addition to focusing on strengthening institutional governance and developing its human resources, which in turn contributed to the CMA’s ranking first for three years in a row during the period of the second strategic plan in the ranking of entities with an independent budget subject to the State Audit Bureau’s supervision in terms of governance compliance, according to the latest annual report of the Bureau, as the percentage was 95.4%. In addition, the CMA issues and publishes periodic reports on the progress of achieving the strategy and action plan through a summary of the quarterly report on the performance of the strategic plan published on its official website, in fulfillment of the requirements and standards of governance principles.

In conclusion, the CMA extends its sincere thanks to all those who contributed and participated from the State’s institutions, whether from the public sector or the private sector, and all CMA employees in the success of its efforts towards implementing the second strategy which extended from the financial year 2018/2019 to the financial year 2022/2023 to develop the capital markets sector in the State of Kuwait. Ambitions do not stop at previous achievements, but we are always looking forward to more progress and success to create a better economic future.

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

Visual Presentation

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