CmaBoardReleases
Title: Kuwait Participates in the Global Forum for Foreign Investors (HSBC MENA Investor Forum)
KUWAIT CITY, March 27, 2018 - The State of Kuwait has participated in HSBC Middle East North Africa (MENA) Investor Forum, which was held in New York City, USA, on 26-27 March. The event was attended by representatives of several parties working within the MENA capital markets’ framework, represented by regulators, financial markets and listed companies.
The forum aimed at introducing the financial markets in the different countries of these two regions and reviewing the latest developments related to these markets and investment in them. On the other hand, the forum provided an opportunity to meet with about 70 foreign investors, such as asset management and trading companies with current or future investments in the Middle East and North Africa.
The State of Kuwait participated in this forum with a delegation from the Capital Markets Authority (CMA) and Boursa Kuwait Company, in addition to the participation of representatives of a number of listed companies.
The Kuwaiti delegation's participation in the forum follows important recent developments to securities activities such as the promotion of Kuwait’s Exchange to an emerging market status, and CMA’s attainment of official membership of the IOSCO, which placed Kuwait on the global investment map. It is important to participate in international events, to meet with major foreign investors and keep them informed of the rapid developments of the securities activities in general, and in particular of Boursa Kuwait, especially with regards to the market development project (MD).
The importance of CMA's participation in this forum is to provide an opportunity to review the most important current developments in local securities activities as well as its future trends in a global forum of current and future investors wishing to invest in the Middle East region, driven by the will to know the major changes implemented in the trading system, which paved the way for the promotion of the Kuwait’s Exchange for an emerging market, and to know the nature of future changes, quality and time programs.
The delegation has worked to achieve its objectives of participating in this forum through several events, starting with a series of extended meetings with representatives of many companies interested in investing in the Kuwaiti market in Pennsylvania and Boston, and to find out the benefits, requirements and mechanisms to reach other promotions for the local exchange and the expected repercussions for our investment and economicy in general and the expected repercussions of the comprehensive improvements of the domestic capital markets on the flow of foreign investment.
Mr. Mishaal Al-Usaimi, Vice Chairman of the Board of Commissioners of the Capital Markets Authority, Acting Managing Director, who reviewed the current developments in Kuwait’s Exchange from all aspects of its legislative, regulatory and technical work in order to achieve the highest possible degree of compatibility with the international standards, in which it stressed the keenness of the CMA to carry out the continuous development of the capital market framework, and the updating and continuous amendment of the Executive Bylaws of the establishment of the CMA, as well as all the development directions related to the infrastructure of such framework, which enables the application of new financial derivatives and development of innovative investment tools that will contribute with other future directions in creating an environment that attracts foreign institutional and foreign investments and local investments at the same time.
It can be said that the various directions for the development of the capital markets framework as seen by the CMA includes its comprehensive project to develop the market, which will launch its second phase (MD2) officially in early April after completion of the tests, which include the activation of some products, which followed the implementation of the first phase (MD1) of this project in May of 2017.
The third phase of the project (MD3), which is expected to be launched by the end of this year, will witness a significant development in the settlement of cash transactions of securities transactions and the implementation of other financial products. The last stages of this project, which is to be implemented in 2019 is expected to represent a quantum leap for the securities activities, where it will witness the implementation of international derivatives in our local Exchange.
The Vice Chairman of the Board of Commissioners referred to the enormous challenges faced by the CMA and its partners in the development of the capital markets framework, especially those related to the length of the documentary cycle required for opening accounts locally, and the lack of listed companies marketing for their work and directions which are challenges that shall be overcome. Listed companies’ presence in this global forum for foreign investors is the starting point in this regard and an integrated annual program is expected to be implemented to meet investors and to market products and clarify the different development trends, which helps to overcome the current gaps in the field.
Ends
Notes to Editors
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010, and amended by Law No. 108/2014. Pursuant to the Law, the Authority 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 Authority's Law.
Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The Authority 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