Title: Press Release: Launching the Capital Markets Authority’s Digital Transformation Strategy

Kuwait, October 27, 2021 - As part of the Capital Markets Authority’s (CMA) efforts to achieve its vision “To be a leading regulatory authority which works on developing and supervising the activities of capital markets in the State of Kuwait, and creating an attractive investment environment that obtains investors' trust,” the CMA has worked continuously on evaluating and developing its work for the purpose of raising its efficiency and effectiveness. Based on the CMA’s current strategy (2018/2019-2022/2023), in particular the strategy’s twelfth objective which stipulates “Upgrading the institutional building and developing the human resources,” the CMA has launched several strategic initiatives within this framework, one of which was the CMA’s Digital Transformation program which is in line with the country’s vision, the objectives of the development plan and the government’s work program. It also meets the requirements of the digital age of the multiple technologies, its accelerated pace of development, and its impact on the performance of the institutions and the work environment.

The program represents a strategic and digital direction, which contributes to achieving the vision of His Highness Shaikh/ Sabah Al-Ahmad Al-Jaber Al-Sabah – may he rest in peace – as well as achieving the strategic development directions of the country which it seeks to achieve by the year 2035 as part of Kuwait’s vision “New Kuwait”, and in particular the vision on achieving human resources development and balanced development, and providing appropriate infrastructure. It is also part of the national development plan, which include “Effective government administration, diversified and sustainable economy, and innovative human capital.”

The program started in December 2019. The CMA’s Digital Transformation program was launched at that time through forming a higher committee named the Steering Committee of CMA’s Digital Transformation program, and its tasks and competencies were specified. The first recommendation of the committee was forming a special team from CMA’s cadres specializing in preparing CMA’s digital transformation strategy in which the strategy will be the main reference of releasing the program’s initiatives and measuring the achievement of its goals.

Furthermore, the team has prepared a detailed study for the requirements of the digital transformation strategy including the recommendations. The study included an evaluation of the CMA in terms of the digital readiness in addition to conducting benchmarks with several similar institutions within a group of selected countries for the purpose of viewing the applicable practices and the lessons learned from those experiences. It also included an analysis of the strengths and weaknesses, evaluation of the internal environment in terms of human and technological resources, identification of the gaps between the ongoing condition and the ambitions, and the final recommendations of the corrective steps that are necessary to achieve CMA’s digital transformation. According to which, the team started preparing the digital transformation strategy by following the Balanced Scorecard methodology of the strategic planning.

The CMA’s digital transformation strategy was launched in October 2021 based on 4 strategic aspects:

1. Effective data management
2. Integrated stakeholder experience
3. Operational excellence
4. Direct resources

Such aspects included 12 institutional objectives and 12 strategic measurement indicators to be achieved within 14 major initiatives. Such targets and initiatives range from institutional level to organizational level by 28 sub-targets, 34 measurement indicators, and not more than 40 sub-initiatives. The durations and the hierarchy of achieving the initiatives were estimated within a road map that extends until 2025. In line with its completion, the CMA’s business model will turn into a model that completely depends on digital technologies, beginning with automation techniques, artificial intelligence, large data, and cloud computing. By managing the digital transformation through a special strategy, the CMA looks forward to taking advantage of those platforms and explore new ways to acquire revenues in order to invest in these technologies and support its main role stipulated in the Law of its establishment, ensure its contribution in achieving the country’s vision 2035, and improve the international indicators of the country in this area.

The attached diagram shows the main elements of CMA’s strategy.

In conclusion, the CMA would like to emphasize it is continuously keen to adopt the best practices in various fields and its implementation of its vision that complies with the government directions regarding raising the business efficiency to improve the local business environment in general and contribute in achieving the development strategic directions of the country as part of Kuwait vision “New Kuwait.”

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