CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (11/2026 Disciplinary Board) (11/2026 Authority) and imposition of a fine against: Kuwait & Gulf Link Transport Company (KGL) for violating the Rules of Disclosure and Transparency

Announcement regarding issuance of Disciplinary Board Resolution No. (11/2026 Disciplinary Board) (11/2026 Authority) and imposition of a fine against: Kuwait & Gulf Link Transport Company (KGL) for violating the Rules of Disclosure and Transparency.

For the following reasons:

Violation of the provision of Item (22) of Article (4-1-1) of Module Ten (Disclosure and Transparency) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. This is due to the Company’s refrain from  immediate disclosure at Boursa Kuwait Securities Exchange of the material information related to the financial impact resulting from signing a settlement agreement between affiliate and subsidiary companies of the Group; which consequently resulted in a subsidiary company waiving of 28.24% equity share in an affiliate company in exchange for settlement of liabilities with these parties in a total value of KWD 17,220,848 (Seventeen Million, Two Hundred and Twenty Thousand, Eight Hundred and Forty-Eight Kuwaiti Dinars Only). This was significantly reflected on the financial position of Kuwait and Gulf Link Transport Company (KGL) by generating a profit of KWD 3,732,159 (Three Million, Seven Hundred and Thirty-Two Thousand, One Hundred and Fifty-Nine Kuwaiti Dinars Only), without the Company’s disclosure of such material information to date.

The Resolution included the infliction of the following penalty: -

“Levying a fine on Kuwait & Gulf Link Transport Company (KGL) in an amount of KWD 20,000 (twenty thousand Dinars) for the attributed violation.”

In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these Laws in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice.

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