Title: The Capital Markets Authority - Kuwait (CMA) Issues its Twelfth Annual Report

Kuwait, July 29, 2023 - The Capital Markets Authority (CMA) announced today the release of its twelfth annual report for the financial year (2022/2023). The report provides a detailed overview of its key functions and achievements in various areas of its work, including legislative, regulatory, supervisory, and awareness aspects. It also highlights the organization's efforts in regulating and developing its internal environment, as well as its local, regional, and international relations. Furthermore, the report presents the financial statements of the CMA for the given financial year, along with the performance indicators of the Kuwait Securities Exchange for the year 2022.

In light of the unprecedented global interest in sustainability issues as a pressing priority for human societies to address multiple developmental challenges, the report dedicates a separate section to sustainability in its various dimensions: institutional, societal, environmental, and the sustainability of the securities activities sector.

Similarly, the report also includes a separate section for the CMA's vision and future directions, as outlined in its current strategy for the years (2023/2024-2026/2027). These strategic directions were emphasized by Prof. Ahmad Abdulrahman Al-Melhem, Chairman of the Board of Commissioners, in his opening message. He described these strategies, with their three pillars (Capital Markets Development, Cooperation and Communication, Institutional Enablement), as laying the foundation for a true qualitative shift in the local securities activities. Moreover, the report details the CMA's twenty-six key initiatives, with twelve sub-initiatives, which Dr. Al-Melhem sees as a roadmap for the CMA over the next four years.

In his message, Prof. Al-Melhem also highlighted the CMA's notable achievements in its recent financial year. This includes establishing the common regulatory framework for passporting of financial products in the Gulf Cooperation Council countries, completing the regulatory frameworks for collective investment schemes, derivatives, listing, and financial technologies. Additionally, the CMA issued regulations for investment advisors, licensing single-person company activities, approved the financial analysts register, and established the foundation for ESG sustainable finance. Furthermore, the CMA's focus on "institutional excellence and enablement" resulted in being ranked first for the third consecutive year among independent entities subject to the supervision of the State Audit Bureau in terms of governance compliance. The CMA also achieved ISO certification for information security, attained a 100% compliance rate with the data classification standards of the Communication and Information Technology Regulatory Authority, and published the evaluation of its key performance indicators for the second year in a row. Lastly, the CMA obtained membership in the Global Financial Innovation Network (GFIN).

On another note, the twelfth annual report of the CMA, comprising nearly two hundred pages, consists of ten main sections. Beginning with an introduction to the CMA's vision, mission, objectives, and core values, it is followed by a performance statement of the Board of Commissioners and the Secretary's office. The strategic field is then covered, followed by sustainability and its different aspects. The report also includes a section on the tasks of the councils and committees emanating from the Board of Commissioners and its affiliated offices. The sixth section highlights the CMA's achievements in various aspects of its work, including legal and regulatory matters, supervision, awareness, and media, as well as cooperation at the local, regional, and international levels.

Furthermore, the report presents in detail the tasks related to the internal working environment of the CMA, such as financial and treasury affairs, technical regulation and updates, and general services. This is followed by the section on the CMA's vision and future directions, which are reflected by the initiatives in the current strategic period (2023/2024-2026/2027). Lastly, there are separate sections dedicated to the financial statements of the CMA for the financial year covered in the report, as well as the trading indicators of the Kuwait Securities Exchange for the year 2022.

In numerical terms, some statistics regarding the executed tasks indicate that the CMA's Board of Commissioners held 47 meetings, discussing 425 subjects and making 444 decisions. Notably, the strategic plan witnessed the execution of 91% of the total projects and developmental initiatives outlined in the second strategic plan for the CMA (2018/2023), which concluded in March 2023.

In the legal realm, 1573 lawsuits were registered, and legal opinions were provided on 1190 matters, with investigations conducted for 209 violations.

Regarding regulatory matters, the figures indicate the licensing of 72 persons and 226 licensed activities. Moreover, 165 decisions and related circulars were issued regarding licensing activities, and 1327 applications for registered positions and employment positions were reviewed. In the field of collective investment schemes, the CMA administered 62 schemes, with a total capital equivalent to KWD 1,963,963, and net assets valued at KWD 2,294,573.

In terms of corporate finance, statistics show the approval of 29 capital increase requests, 13 capital reduction requests, 11 prospectus approvals, 143 approvals for the purchase or sale of treasury shares, and the issuance of debt instruments totaling KWD 355 million. Additionally, five merger and acquisition transactions were executed, surpassing a value of KWD 273 million. The CMA also granted approval for two other transactions, bringing the cumulative value of such activities since the establishment of the CMA to over KWD 1.5 billion.

The regulatory data reveals the completion of 242 on-site supervision missions and the examination of 554 financial statements and reports under the off-site supervision. Moreover, statistical and financial data on the entities under the CMA's supervision, including listed companies, licensed investment companies, and registered securities brokerage firms, were presented.

On the awareness front, the CMA conducted 13 workshops, implemented nine awareness campaigns, released five publications, four editions of the electronic awareness magazine, and published 12 press releases. Additionally, 261 awareness messages were disseminated through the CMA's social media accounts.

Finally, apart from the numerical achievements, it's worth highlighting one of the CMA's key strategic objectives for the upcoming phase. As part of its ongoing initiatives, the CMA aims to meet the necessary requirements to elevate the local financial market to the status of advanced emerging markets. This includes adhering to the standards set by international rating agency "FTSE Russell," as an initial step in an initiative that could be the first of its kind in the Arab region.

Ends-

Notes to Editors:
The Capital Markets Authority (CMA) of Kuwait was established pursuant to Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, and its amendments, approved by the Kuwaiti Parliament in February 2010. Under this Law, the CMA regulates and supervises securities activities, ensures transparency, fairness, efficiency, and observes listed companies’ implementation of Corporate Governance regulations. The CMA also protects investors from unfair practices and violations of 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