Title: The Capital Markets Authority Devotes Latest Issue of its Awareness Magazine to the Topic “Islamic Financial Industry”

Kuwait, December 3, 2023 - The Capital Markets Authority (CMA) launched the fourteenth issue of its electronic awareness magazine, which focused on the Islamic financial industry. Various considerations behind devoting a special issue to this topic, as indicated by the editor-in-chief in his concluding column. He summarized these considerations by mentioning the CMA’s adoption of a special initiative for the Islamic financial industry in its current strategy, and its endeavor to prepare a roadmap to enhance its role in light of the increasing international interest in it as a desired option for the global economy to overcome its recurring crises and achieve sustainable development.

This issue commenced with the editorial of the Chairman of CMA’s Board of Commissioners, Prof. Ahmad Al-Melhem presented in it the causes of the financial and economic crises that the global economy repeatedly witnesses. He considered these crises as merely symptoms of ignoring the real causes that affect the core of this economy, such as relying on unethical elements like bank loans, practices related to fraud, usury, and gambling in financial transactions. Prof. Al-Melhem considered that the ethical value-based economy, represented by the financial industry, has become an urgent necessity to overcome its successive crises of the global economy. He also stressed the urgent need to shift to a sustainable ethical sustainable economy through the Islamic financial industry, which today stands on the verge of global recognition.

On the other hand, it can be said that the broad participation of experts in this issue on Islamic financial industry and those interested in the issue has significantly contributed to shedding light on various aspects of that industry, in addition to presenting interesting proposals to advance the industry, especially in terms of enhancing the role of Sharia supervision and governance practices, as well as introducing innovative investment products.

Dr. Badr Al-Mansouri, an Islamic Finance Advisor, presented the mechanisms of Islamic jurisprudence in addressing the monetary inflation affecting all human societies. Meanwhile, Dr. Muhammad Awad Al-Enazi, a professor at the Ministry of Awqaf, discussed the objectives of Sharia contracts and financial transactions, in addition to the legitimate means of collecting funds.

The “Issue Interview” was with Dr. Fouad Al-Omar, a prominent figure in the Islamic financial industry, who recognized the CMA’s efforts in developing a roadmap for the advancement of this industry, especially since Kuwait has all the elements required to develop this industry, which is witnessing steady growth.

In turn, Dr. Muhammad Abdulrahman Al-Sharafa, the AAOIFI-certified Sharia auditor, considered the experience of the CMA in the field of Sharia governance as “Inspiring”. Dr. Abdulabari Mishaal, the managing partner at Raqaba Sharia Audit and Islamic Financial Advisory, explained the differences and extent of alignment between the theoretical frameworks of Sharia governance and its practical application from four perspectives: “protecting the rights of minority investors, management responsibility for violation and negligence, management responsibility for deceit and fraud, and adequacy of governance requirements.”

The “Prospects and Trends” section, provided an overview of several aspects that can contribute to the development of the Islamic financial industry, such as the need to enhance the role of Sharia supervision and cooperation between regulatory authorities as one of the required elements for sustainable success, as presented by Dr. Saud Asaad Al-Thaqib at the finance department in the administrative sciences college at Kuwait University.

Additionally, suggestions were made for investment products needed to boost the industry, such as endowment (Waqf) investment funds, which Dr. Yousef Hassan Al-Sharrah, Chairman of the Advisory Council for Sharia Supervision, considers to be an investment product worthy of attention to support the growth of the Islamic financial assets industry. He also presented a proposal for the mechanism of operation of this type of funds and their characteristics and advantages. The study presented by KFH Capital also discussed sukuk with investment and developmental roles simultaneously. He concluded with expectations of debt market trends in the upcoming year, according to the vision of Dr. Issam Zaid Altawari from Newbury Economic Consulting Company.

The “Awareness Section” presented terminology, investment financial instruments, and international organizations related to the Islamic financial industry. As for the “Studies” section, Mr. Mubarak Al-Rifai, Director of the Corporate Finance and Governance Department at the CMA, addressed the opportunities and challenges faced by special purpose vehicles in the State of Kuwait at the level of issuing debt instruments in general, and sukuk in particular.

It was not possible - of course - to address the issue of the Islamic financial industry without mentioning the Islamic Development Bank and its pioneering experience in its various institutions, especially the Islamic Development Bank Institute as an inspiration of knowledge about Islamic financial services in accordance with the vision of its Acting Director General, Dr. Sami Al-Suwailem.
As for the remaining sections of the issue, they presented different topics, such as the “Economic Leaders” section, which reviewed aspects of the successful legacy of the late Mohammed Nasser Al-Sayer, and the “Legal Section,” which covered the issue of holding the director or board of directors accountable for the losses and damages resulting from their violation of the announced activity. The “Events” section, which was dedicated to the CMA’s “qualitative” regional and international awareness contributions, in addition to the “Information Awareness” section, which provided advice on protection from the practices of financial fraud. As for the most prominent events and activities of the CMA during the issuance period extending between the months of September and last November, they were summarized in the “Events and Activities” corner.

Finally, the CMA announces the launch of this issue on the Islamic financial industry, hoping that it succeeded in shedding light on some aspects of this industry. It also hopes for the collaboration of all parties in developing  a comprehensive vision to elevate it to the desired levels.

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 stipulates the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs pertaining to securities activities.
For further information, please contact:
Public Relations & Media Office
Tel: 22903062
Fax: 22903505
Email: pr-media@cma.gov.kw