Title: Kuwait is Upgraded to an Emerging Market within S & P Dow Jones Indices
Date Publish 06 December 2018
Kuwait, December 6, 2018, S & P Dow Jones Indices announced that it has upgraded Kuwait to the Emerging Markets Index. It praised the remarkable progress in the settlement and clearance systems through the transition to a standard T + 3 settlement and achieved the principle of delivery against payment (DVP). It should be noted that these changes have been implemented within the first and second phase of the Market Development Project, which is overseen by the Capital Markets Authority and is being implemented in collaboration with Boursa Kuwait and Kuwait Clearing Company.
The announcement stated that the actual execution of adding Kuwait in the S & P Dow Jones indices will be before the market opening on 23/09/2019. The indices affected by this decision are:
• S & P Global BMI
• S & P Global BMI Shariah
• S & P / IFCI
• Dow Jones Global Index
• S & P Global Property
• Dow Jones Islamic Markets
It should be noted that S & P Dow Jones Indices placed Kuwait on the watchlist to be upgraded to an emerging market in their June report for the second year in a row. In the announcement, S & P Dow Jones indicated that the regulator (represented by CMA) is reaching important milestones towards the achievement of the upgrade to emerging market status, which is done through a multi-stage project aimed at congregating international standards. In the same announcement, it mentioned that the most significant achievements in the development process were:
- Unifying the settlement cycle to T + 3 in order to meet the international standards.
- Delivery versus payment (DvP) and continuous development plans.
- To divide the market according to specific criteria.
The same report identified that the expected percentage of Kuwait's weight in the Emerging Markets Index is 0.56%.
This second upgrade comes as an achievement with the first being the FTSE Russell upgrade. Furthermore, Kuwait is currently on the MSCI watchlist for upgrade to the emerging market status which is set to be decided in June 2019.
The CMA takes this opportunity to thank this achievement to its partners in the market development project, in particular Boursa Kuwait, Kuwait Clearing Company, Brokerage Companies, Investment Companies participating in the trading system and Custodians.
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.
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