CMA LAW: Press Release: Suspension of Trading of Dalqan Real Estate Company Shares Listed in Boursa Kuwait Securities Exchange

Kuwait, May 13, 2026 – In pursuit of the continuous efforts of the Capital Markets Authority (CMA) to protect investors from any actions or behaviors that the security may be exposed to that may violate Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, its Executive Bylaws, and amendments thereto, and in implementation of the provisions of the mentioned Law and its Executive Bylaws, in confirmation of its commitment to implementing the provisions of the aforementioned law and its executive bylaws, and taking into consideration the fact that the company’s external auditor, appointed by the General Assembly on 28/04/2025, submitted a letter to the CMA on 01/04/2026, which included an apology and withdrawal from the audit work for Dalqan Real Estate Company, due to the company’s submission of bank statements with data different from those that were delivered to the external auditor during the quarterly periods of 2025, and recording an accounting entry of KWD 806,800 in favor of Dalqan Holding Group Company at the end of the financial year without providing it with supporting documents, and in light of the company’s submission of statements and data to the CMA that differ from those previously submitted to it, the CMA has noted substantial observations regarding the accuracy and integrity of the cash and cash equivalent balance within the company’s financial position statement, the rental revenue item within the consolidated profit and loss statement, and the failure to disclose the size and nature of transactions with related parties within the notes to the financial statements, during the financial periods ending on 31/03/2025, 30/06/2025 and 30/09/2025.

The CMA Board of Commissioners issued in its meeting No. (19) of 2026 held on 13/05/2026 a Resolution stipulating the following:

Article (1)
The shares of Dalqan Real Estate Company listed in Boursa Kuwait Securities Exchange are hereby suspended from trading, pursuant to Items (3),(4), and (5) of the provision of Article 1-20 of Module Twelve (Listing Rules) of the Executive Bylaws of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and amendments thereto, which stipulate the following:

“The Authority may temporarily suspend trading in the Exchange, and suspend the trading of any Security listed in the Exchange in any of the following cases:
…
3. Achieve investor protection in the markets.

4. If the Issuer fails to submit any data or documents required by the Authority within its regulatory scope.

5. If the Auditor has given a material, qualified opinion on the periodical or annual financial statements, or in the event that the contract with the Auditor was terminated as a result of a disagreement between the Listed Company and the Auditor.”

This will continue until the Company takes the following necessary procedures:

1- Submitting the following documents:

- Copies of the cheques used to deposit the proceeds from the sale of investment properties in Salmiya area No. (30), (31), and (32), or a certified bank document showing all the details of those cheques, including the name of the cheque issuer and the cheque number.

- Supporting documents and contracts that prove the details and nature of transactions and transfers to and from the company's bank accounts from 01/01/2024 to 31/12/2025, in addition to all post-dated checks for settlements starting from 01/01/2024, with the following parties:

• Dalqan Holding Group Company, including the accounting records for KWD 750,000 and KWD 806,800, as disclosed in the company's disclosure on 09/04/ 2026.

• Aleid Foods Company.

• Al Ashraf Market Center Company.

• Zahoor Al Reef General Trading and Contracting Company.

• Any other parties related to Dalqan Real Estate Company.

The aforementioned documents, along with any other information and documents requested by the CMA, must be provided no later than 01/06/2026.

2- Addressing the material errors in the financial statements for the periods ending on 31/3/2025, 30/6/2025, 30/9/2025 particularly the items regarding the cash and cash equivalents in the company's statement of financial position, the rental income item in the consolidated profit and loss statement, and the size and nature of transactions with related parties in the notes to the financial statements. These errors shall be addressed by reissuing the financial statements in a manner that ensures the balances for those financial periods are recorded fairly and accurately, reflecting the company's true financial position. A copy of the reissued financial statements shall be provided to the CMA no later than 16/08/ 2026.

3- Submitting the company's audited financial statements to the CMA for the financial year ending on 31/12/2025 and any subsequent financial statements, in compliance with the regulatory deadlines stipulated in the Executive Bylaws of Law No. (7) of 2010 and their amendments. The CMA will verify the observations submitted by the company's external auditor appointed by the General Assembly on 28/04/2025, and any other observations. These financial statements shall be provided to the CMA no later than 16/08/2026.

Article (2)
The continuation of listing the shares of Dalqan Real Estate Company in Boursa Kuwait Securities Exchange shall be reviewed in the event that the Company fails to meet the CMA’s regulatory requirements stipulated in Article (1) of this Resolution. 

Article (3)
Dalqan Real Estate Company shall provide the CMA with a weekly report on the updates and measures taken to address the suspension of trading its shares listed in Boursa Kuwait Securities Exchange, as of the issuance date of this Resolution. 

In conclusion, The Capital Markets Authority emphasizes the necessity for all shareholders to fulfill their supervisory role by monitoring management performance and participating in decision-making that benefits the company. Furthermore, CMA confirms that it will continue its regulatory role in protecting investors, which will also create a fair, competitive, and transparent financial market, as well as reducing the systemic risks that are expected to occur in securities activities and working to ensure compliance with laws and regulations related to securities activities.

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: 1888898
Email: pr-media@cma.gov.kw

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