Title: Through a Memorandum of Cooperation between “Hawkamah Institute” and “The Capital Markets Authority”, Kuwait and U.A.E Collaborate in Strengthening Governance Practices

Kuwait City - October 29, 2019, The “Hawkamah Institute” for Corporate Governance of the Dubai International Financial Center Authority (DIFC) and the Capital Markets Authority of Kuwait (CMA) recently signed a Memorandum of Cooperation to promote efficient corporate governance practices for listed companies in Kuwait, and raise awareness of their importance among these companies in particular and among other State institutions in general.

The memorandum was signed at the Capital Markets Authority headquarters. It was signed by Dr. Ashraf Gamal El Din, CEO of “Hawkamah Institute”; and Dr. Ahmed Abdulrahman Al-Melhem, Chairman of CMA Board of Commissioners, Managing Director, in the presence of a number of managers and senior officials from both parties.

The memorandum aims to the cooperation between both parties in order to educate members of the boards of directors, executive management and secretariats concerned with governance, auditing, and risk at listed companies in the securities exchange and other licensed shareholding companies by the Capital Markets Authority, with the latest developments in governance and best international practice.

The memorandum includes enabling “Hawkamah Institute” to provide practical advice and trends to these companies on improving governance practices to enhance their ability to obtain external financing and raise their capacity and operational efficiency in addition to improving their status, as well as consulting between the Institute and the Authority on governance rules in Kuwait, and discuss what is necessary to improve and bring them closer to the best international practices according to the laws in force at the State.

Dr. Ashraf Gamal El Din welcomed this cooperation with the Capital Markets Authority, as part of Kuwait's vision to enhance governance practices in the public and private sectors, which will enable more companies and institutions in the region to benefit from the expertise of “Hawkamah Institute”, and raise the level of transparency, pointing out that the spread of such practices among listed companies in the capital markets, helps to stabilize markets and increase investments.

Dr. Ashraf said that they look forward to increasing the capacity of shareholding companies to obtain financing at lower costs, thus expanding their business, reducing risk and building trust with stakeholders. Through good governance practices, investments can be protected from exposure to losses, and eventually maximizing investment returns, shareholders rights and investment values of listed and non-listed companies in financial markets.

For his part, Dr. Ahmed Abdulrahman Al-Melhem said: Signing this agreement comes as part of the continuous efforts of the Capital Markets Authority to achieve its main objectives, especially in establishing good corporate governance practices, in line with the rapid pace of changes and developments in this area, both regionally and internationally, which in turn reflects the urgent need to cooperate with institutions active in this field, especially in the field of education and training to keep pace with these changes and developments.

In accordance with the memorandum of cooperation, the two parties agreed to spread awareness about corporate governance through conferences, meetings and seminars, in addition to preparing specialized manuals and instructions, developing legislative frameworks for corporate governance in Kuwait, and developing communication and awareness-raising strategies including training journalists and specialized media means, and exchanging information, trends and reports, along with other necessary data to promote and achieve the goal of cooperation between them.

The “Hawkamah Institut” for Corporate Governance, part of the DIFC Authority, was set up in 2006 to help bridge the corporate governance gap in the region. The institute’s primary goal is to provide the region's companies and boards with practical tools on how to improve corporate governance. The Institute's work also involves engaging governments and industry, conducting surveys and studies, and creating regional benchmarks. 

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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