Title: Press Release: The Capital Markets Authority Launches the Enhanced Version of its XBRL Electronic Disclosure System as a Pilot Launch Starting from Sunday 14/07/2024

Kuwait, July 10, 2024 – As part of its efforts aiming to improve various transactions related to securities activities and enhance the disclosure and transparency levels in the Kuwaiti financial market, the Capital Markets Authority (CMA) is launching, as of today, Sunday, July 14, 2024, the electronic disclosure system “Ifsah 2 Disclosure System”.

It is worth noting that the parties concerned with the applications of this system are: (licensed persons, listed companies, auditors, collective investment schemes, other regulatory authorities, Boursa Kuwait Securities Company, and all individuals and institutions “traders” dealing in the capital market of the State of Kuwait). The disclosure information and requirements specified in the system are included in its four domains as follows:

• Financials Reporting Domain.
• Capital Adequacy Reporting Domain.
• General Assembly Reporting Domain.
• Disclosures Reporting Domain.

Prior to the launch of the system, the CMA has held a series of internal and external awareness workshops for all categories of investors using the system. The CMA has also prepared a comprehensive plan including a gradual activation of the system’s domains flexibly to overcome any obstacles related to the system launch. The plan included two phases:

1. Pilot Phase.
2. Mandatory Application Phase.

The pilot phase aims to qualify the system’s users, raise awareness of the advantages and mechanism of the components of the electronic disclosure system, provide full support to all categories, ensure the stability of the system processes upon the receipt of all types of data by the CMA and Boursa Kuwait Securities Company, and enhance user confidence in completing all operations through the system mechanisms in accordance with the controls and regulations. Through this phase, the process of registering entities will be active through the system. All relevant traders will be directed to submit their financial and non-financial disclosures through the system in accordance with the required electronic forms and financial reports, to serve the objectives of this phase. Moreover, it is worth noting that traders will continue submitting their said disclosures and reports to the CMA and Boursa Kuwait Securities Company according to the applicable traditional methods outside the system, which gives them the opportunity to obtain the elements of dealing with this system and enables them to conduct more examinations that simulate the operational procedures to overcome any potential remarks that may accompany its application.

The mandatory application phase will witness the suspension of all traditional disclosure methods applicable before the enforcement of the electronic disclosure system’s domains so that this system will be the only mechanism available for the relevant entities to submit their disclosures and reports to the CMA, starting from the implementation date of this phase, intended to commence on Sunday, January 05, 2025.

Furthermore, in pursuit to ensure that the persons using this system have the required awareness of it and of the mechanisms of dealing with it and disclosing through it, the CMA has implemented a comprehensive awareness plan on its regard, which provides an awareness and introductory section for this system titled “Electronic Disclosure System” that will be published on the CMA’s electronic website. This section will include all the system’s information and guides of its features and applications as electronic documents or recorded awareness videos. The awareness plan will also include a series of workshops regarding this system implemented through webinars that permits the persons dealing with this system to watch and participate in those workshops from their whereabouts, which exempt them from the actual attendance and save their efforts and time. These workshops are expected to clarify various aspects related to the features and applications of this system, provide  responses to the users’ enquiries, and facilitate direct communication with the system’s technical support team either by phone or through the email designated for this purpose.

This project is not only an important strategic project to the CMA that will greatly supports the achievement of its objectives and the effective practice of its regulatory role to a large extent, but also it is considered one of the main pillars for strengthening the basic infrastructure required for the capital markets in the State of Kuwait, upgrading its competitive status and improving the local investment climate in general.

The application of this system is considered a decisive step towards achieving a number of CMA’s main objectives, especially the ones related to enhancing transparency and disclosure in the capital markets. This modern electronic system receives disclosures of information, and financial and non-financial statements from listed companies, licensed persons, and collective investment schemes after unifying all components of those disclosures and reports in accordance with XBRL, which ensures the accuracy of data and information included in in those disclosures, and facilitates dealing with them by all investors, and makes them available for all persons of interest and for the largest segment of relevant persons in a timely manner, and reduces the obligation burdens on all the entities required for disclosure on the other hand.

Moreover, with regards to the local investment environment, this system offers an opportunity to overcome several obstacles related to the exchange of data and information with various relevant parties and stakeholders in the Kuwaiti financial market (such as companies subject to the CMA’s supervision, individuals, audit offices, and other regulatory entities). Such disclosure systems proved their effectiveness in facilitating the disclosure process and enhancing their efficiency, which will positively be reflected on the capital markets system in the State of Kuwait. This system will also facilitate the procedures of the local business environment and enhance the regulatory efforts in the financial sector in general. The disclosure mechanism according to this system will be restricted to the relevant entity’s disclosure of its data and information for one time only in a unified form of concepts and elements of disclosures. The system will verify their validity and approve them by the concerned parties, save them on a central database, and share them with all other regulatory authorities that deal with the system in accordance with the granted permits and authorizations without the need for re-requesting those data and information from the entities subject to the supervision.

The electronic disclosure system is based on XBRL language (Extensible Business Reporting Language), which is a standard, digital, and flexible language (extensible) specifically developed to support disclosure and exchange of information between the entities and parties of the economic activity and the various users of data and information (financial and non-financial). The “standardization” of that language refers to the global agreement of its concepts and terms within the international XBRL organization, an international non-profit organization concerned with setting standards in XBRL language and preparing and issuing the classifications and determinants of this language and developing them for the purpose of improving the disclosure process in the financial markets.

In conclusion, through its announcement of the pilot and qualifying launch date of the electronic disclosure system in a pioneering step locally unprecedented, the CMA hopes for its success based on the extensive  preparation phases performed prior to its launch, the comprehensive awareness plan that is being implemented simultaneously with its launch, and the cooperation of all parties and entities concerned with disclosure through it. At the same time, the CMA welcomes all enquiries relating to the system through the available means and invites them to follow up the system’s news through its designated section on the CMA’s website, which includes all the system’s information and guides of its features and applications as electronic documents or recorded awareness videos.

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