Title: The Capital Markets Authority Issues its Tenth Annual Report

Kuwait City, August 9, 2021 – On the twenty-sixth of last July, the Capital Markets Authority (CMA) issued its tenth annual report for the financial year (2020/2021) which included the most important tasks accomplished in its various work-related fields during its financial year that ended on March 31, 2021.

In its report, the CMA noted to the exceptional circumstances that dominated the financial year as a result of the continuation of the Coronavirus pandemic for the second consecutive year and the continuation of the precautionary procedures taken to face the spread of that pandemic and avoid its repercussions which required the precautionary suspension of the work of all ministries, government entities, and public authorities and institutions in the country and pushed it to work with some of its operational capacities, and required suspending some of its work in specific phases before the gradual scheduled return of those works to their former state in a later phase. However, this did not prevent the CMA from resuming the execution of its tasks including the current annual report that is considered a legal entitlement of the CMA pursuant to Article (25) of its Law of Establishment which stipulated: “The Authority shall, within 120 days after the end of every financial year, present to the Competent Minister an annual report on its activities, work and achievements in the growth and development of the market during the completed year, including the Authority’s financial accounts and the auditor’s report”. This is what the CMA endeavored to fulfill despite the mentioned exceptional circumstances.

The report, which contained around 200 pages, using numbers and statistics to present CMA’s various executed work and achievements distributed into nine major sections beginning with the introduction of CMA’s vision, mission, objectives, and institutional values, followed by a special section for the performance of CMA’s Board of Commissioners and the work of its Secretariat General. The third section was allocated for the strategic field of its work in its three main aspects (Strategic Planning, Strategic Plan 2018-2022, and Strategic Projects) followed by a section allocated for viewing the achievements of the boards and committees that affiliate from the Board of Commissioners and the offices that form as part of it. The report’s fifth section included several chapters that presented the most prominent tasks implemented in its various aspects of work (legislative, regulatory, supervisory, awareness, and those related to the regional and international cooperation) in addition to a section allocated for the tasks related to CMA’s internal work environment. This was followed by a special section for its visions, aspirations, and trends for the coming years. CMA’s financial statements of the financial year subject of the report were presented in a separate section. The report concluded with a comprehensive presentation of the most prominent trading indicators on Boursa Kuwait Securities Exchange for the year 2020.

The introduction of the annual report included an opening speech by Prof. Ahmad Al-Melhem, Chairman of the CMA’s Board of Commissioners - Managing Director, in which he presented CMA’s persistent efforts in achieving its tasks specified in its law of establishment despite the current exceptional circumstances resulting from the pandemic and noted to CMA’s joint efforts with the relative supervisory entities to face the crisis and contain its repercussions in terms of protecting the securities activities investors from the misleading practices and ensure suitable conditions to enable the entities subject to its supervision to meet their obligations. Moreover, Prof. Al-Melhem noted to CMA’s achievement of 68% of the total projects and developing works included in its current strategy emphasizing on the importance attached by the CMA to the strategic aspect in all its work fields, its keenness on the consistency of its strategic directions with the country’s development directions and compatibility with the latest applied standards at the same time. Within this framework, Prof. Al-Melhem pointed out to the completion of Kuwait’s classification as an emerging market according to the three recognized indicators, achieving of a quantum leap in complying with IOSCO’s standards by 92%, in addition to increasing the ranking of Kuwait in the Ease of Doing Business Index.

In another framework, Prof. Al-Melhem considered the previous year a year of excellent qualitative listings after the listing of Shamal Az-Zour Al-Oula for Power and Water as the first company incorporated under the Laws of Kuwait Authority for Partnership Projects, KFH Capital REIT Fund, and listing Boursa Kuwait as the first Exchange owned by the private sector to list its shares in itself in the Gulf region, or as known internationally (Self-listed Exchange).

Furthermore, Prof. Al-Melhem emphasized on CMA’s permanent keenness on developing the financial market and upgrading the ranking of Kuwait to the levels of developed emerging markets which represent its target in the current phase.

In confirmation of the previously mentioned regarding the report’s reliance on the numbers language, the most prominent tasks achieved by the CMA may be read through specified numbers such as the Board of Commissioners’ holding of 47 meetings to consider 338 topics and take 308 decisions. Regarding the strategic plan, its relative numbers indicate the expiration of 60% of its time limit and implementation of 68% of its projects and developing works (out of 18 projects and 138 developing works). About the legal field, the numbers indicate that the legal opinion was provided for 990 topics, 100 cases were registered, and 150 violations have been investigated. The statistics of the regulatory field indicate that 78 persons have been licensed, 237 activities were licensed, 127 resolutions related to licensing activities were issued, and 1436 requests of registered employment positions have been decided. The statistics of the corporate finance and governance indicate granting 25 approvals of capital increase, 8 approvals of capital decrease, 12 approvals of subscription prospectus, 125 approvals of buying and selling the treasury shares, 9 approvals of issuing debt instruments so the total cumulative value of the granted debt instruments will exceed the barrier of 7 billion Kuwaiti Dinars, in addition to the approval of 3 mergers and acquisition operations so the cumulative value of this type of activities will exceed the barrier of one billion and one quarter of a billion KWD.

About the supervisory field, the data indicate that 231 tasks related to on-site inspection were implemented and 614 statements of 294 entities were studied, in addition to viewing the statistical and financial statements of the entities subject to CMA’s supervision such as listed companies, brokerage firms, collective investment schemes, etc.

The future visions and trends section presented the most prominent of CMA’s future directions whether on what was included in the framework of achieving the development vision (Kuwait 2035), the government work programs and developing the government performance, or those that target raising the efficiency of the local investment environment. In addition, it included initiatives related to CMA’s different tasks: legislative, regulatory, supervisory, awareness, etc.

Finally, as the CMA announces the issuance of its tenth annual report, it draws the attention of those interested in the economic affair in general, and those concerned with securities activities and the CMA’s services in particular to access to the mentioned report through this link or through scanning the QR code below and to all CMA’s news and events through its electronic website www.cma.gov.kw as well as its application for smartphones.

Ends-
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