Title: The Capital Markets Authority Publishes the Fifth Issue of its Electronic Awareness Magazine
Kuwait, September 1, 2021 – On the first of the this month, the Capital Markets Authority (CMA) published its fifth Awareness Magazine through its electronic website. As in the previous issues, this issue covers several topics related to the nature of CMA’s activities and tasks: awareness, legal, regulatory and supervisory, in addition to the economic news section and other sections covering CMA’s activities and events.
The new issue started with the “Editorial” of Prof. Ahmad Al-Melhem - Chairman of CMA Board of Commissioners - in which he presented CMA’s direction in adopting new financial instruments that fall under the framework of CMA’s directions of promoting the elements of the ecofriendly investment, to lay the foundation of an integrated financial market which offers a sustainable finance that supports the directions of the sustainable development. Prof. Al-Melhem has also emphasized on the importance of setting an integrated visualization or a long-term national strategy of the green sustainable development, noting the similar challenges of this field.
“Opinion and Vision” section of Dr. Obaid Saif Hamad Ali Al Zaabi – the former Vice Chair of IOSCO and the former Chief Executive Officer of the Securities and Commodities Authority (SCA) in United Arab Emirates - presented his vision of the roadmap of developing the GCC capital markets.
The issue’s "Interview" section presented an open debate of the magazine’s team with the Chairman and the members of CMA Board of Commissioners, in which the main subject was CMA’s tasks executed in accordance with the information included in the tenth annual report recently issued. However, the importance of this session was represented by going beyond its specific points of discussion to present an integrated vision of the reality of executing CMA’s current initiatives and anticipating its future plans.
Prof. Al-Melhem -Chairman of CMA Board of Commissioners - presented the entitlements of issuing the annual report on time, despite the current exceptional circumstances of COVID-19 pandemic and its repercussions. He also addressed several issues included in the report such as the different types of listings and the implemented legislative tasks, before presenting CMA’s main strategic plans and visions in regulating and developing the securities activities investment environment, particularly the issues related to offering new investment instruments and products. He also mentioned that such initiatives aims to serve the government development plans in the framework of “Kuwait National Vision 2035” on one side, and developing the government performance on the other.
Mr. Othman I. Al-Issa -Vice Chairman of CMA Board of Commissioners - presented the highlights of the latest annual report including the details of the developments of implementing the Market Development program, the relevant remaining phases and major changes. He also presented CMA’s efforts in the field of protecting the rights of the securities investors within the circumstances of the pandemic and the exceptional procedures taken by the CMA on this regard, before presenting an explanation of CMA’s project of the digital transformation that it is currently preparing, and the aims of its implementation.
Mr. Abdulaziz Fahad AlMarzouq -Member in CMA Board of Commissioners- discussed three issues of a special importance for their achieved and subsequent reflections on several aspects related to securities activities. He started with the market privatization project whose latest phase was executed before the pandemic reviewing its positive reflections ahead in terms of enabling the market to perform its required development role, contributing in succeeding the governmental development plans, enhancing the economic reform elements, improving the country’s role in the national economy, in addition to enhancing the contribution of the private sector in the projects’ ownership. He also mentioned the trading indicators of the exchange aiming to include them in CMA’s annual report. The last of those cases was CMA’s supervisory efforts during the ordinary and exceptional circumstances.
On his side, Mr. Ahmad A. Al-Qadhi - Member in CMA Board of Commissioners- discussed the subject of improving the ranking of Kuwait in the indices of IOSCO and other international organizations and in the Ease of Doing Business Index, in addition to CMA’s aims in this regard. He also presented CMA’s directions related to the sustainable finance which forms as the cornerstone of achieving the plans of the sustainable development and introduced CMA’s efforts and initiatives in this framework including the relative legislative amendments that it is currently preparing.
Mr. Abdulmohsen H. Al-Mazidi -Member in CMA Board of Commissioners- presented in numbers the major executed tasks and achievements during the report period, before discussing CMA’s efforts related to regulating and developing the internal work environment in the different administrative, technical, and financial aspects. He also mentioned CMA’s philosophy in which it sees that improving its internal work environment is the basis for success in the performance of its tasks in terms of improving the efficiency of the investment environment in general. CMA’s efforts in the awareness field and in the field of coordinating and cooperating with similar local and international supervisory organizations and entities was the last subject discussed by Mr. Al-Mazidi.
The legal section of the fifth issue of the Magazine was allocated to the subject of “CMA’s independency and the best international practice” in which it presented the two systems of regulating the general administration in the State of Kuwait (centralized administration, decentralized administration). It discussed the importance of independency in the entities’ supervising the economic activities to avoid the disadvantages of the centralized administration system presenting CMA’s independence demonstrations pursuant to the provisions of several Articles of the Law of its establishment. It also presented the best international practice that comply with IOSCO to reach the result of considering the CMA a model for the other entities that seek independency in its supervisory works.
The economic leaders’ section is usually devoted to recalling the experiences of influential economic leaders. It discussed the journey of the late Abdulrahman Al-Ateeqi and his national achievements.
The “Issue Event” section overviewed the subject of the legislative amendments the CMA is currently preparing, which will establish the path of the ecofriendly green finance.
The “Reports” section presented four specialized reports, one of which discussed the performance of Boursa Kuwait during the second quarter of the current year, while the other reports discussed the activities related to each of: off-site supervision tasks, investment portfolios statistics, and the performance of CMA’s strategic plan.
The topics of the “Awareness” section, as usual, varied between: awareness spotlight, recollection of the Securities Exchange, saving and investment, dumping as one of the commercial wars instruments, financial engineering, and the awareness campaign regarding investment in the Gulf. The issue’s “File” was allocated to the subject of diagnosing CMA’s current activities and the path of change to the better in the future.
The "Prospects and Trends" section discussed two of CMA’s strategic projects which are: The Market Development and CMA’s Digital Transformation.
“The Local Initiatives and Efforts in Sustainable Finance” and “The Tenth Annual Report” recently issued by the CMA were the topics of “Other Topics” section, followed by the “Events and Activities” section that summarized the most prominent activities of the CMA during the issuance period (June - August). Moreover, another section presented the highlights of “Economic News” during the mentioned period, before the editor-in-chief of the Magazine, Director of the Awareness Office, in his “Conclusion” section, concluded by presenting the relationship between the concept of financial inclusion and awareness, noting the expansion of this concept in the aftermath of the latest economic crisis, the awareness role on its regard, and the CMA’s developed plans in its framework.
Finally, it should be noted that the Capital Markets Authority’s Magazine is a quarterly electronic awareness publication. It is concerned with the economic affairs and securities activities, aiming to cover the CMA’s news and activities, and to contribute to the required awareness by addressing financial, investment and legal issues. The first issue was in early September of 2020. All the magazine’s issues and different awareness publications can be viewed on CMA’s website.
To browse the magazine, kindly scan the QR Code
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.
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Public Relations & Media Office