Latest news with #CapitalMarketsAuthority
Zawya
14 hours ago
- Business
- Zawya
Boursa Kuwait to launch sukuk, bond trading in 2025
KUWAIT CITY - Chief Executive Officer (CEO) of Boursa Kuwait Mohammad Al-Osaimi said the timeline for debt instrument trading is proceeding as planned, indicating that sukuk and bonds will be traded in 2025. He affirmed that all technical tests for index funds and the bond and sukuk market have been completed, and the regulatory rules are currently being prepared and will be announced within the next few months. Al-Osaimi announced on the sidelines of the launch of the second part of the third phase of the Capital Market Development Program, which is a major milestone that reflects the market system's commitment to continue development per international best practices. Regarding the expected volume of debt instrument trading on the stock exchange, Al-Osaimi explained, 'The current value of commercial debt instruments does not exceed KD2 billion, but after the approval of the Debt Law, we aspire to list government bonds and sukuk'. He pointed out that the stock exchange has a development program extending over three or four years to introduce major updates to its trading system. He revealed 'we will begin testing the new trading system in the second half of 2026.' He stated that the stock exchange is cooperating with the Capital Markets Authority (CMA) to review several products to better present them, stressing that the introduction of the CCP and the Central Broker will help the stock exchange offer financial derivatives soon. He explained that these developments will lead to attracting foreign investments, coinciding with increased investor confidence. About amending the listing requirements on the main market, Al-Osaimi confirmed that 'when the reduction of listing requirements on the main market was approved by reducing the company's capital limit from KD15 million to KD5 million, we received numerous communications from subscription managers in this regard.' He anticipates listings shortly. He disclosed that two family companies are currently negotiating with the stock exchange for listing, explaining that the stock exchange intends to attract companies in various sectors, including commercial, government, and family businesses. He said the listing procedures and requirements are not easy, as companies are being reorganized and prepared for this step, which may require a period that may extend to several years. He clarified that there is currently no intention to list oil sector companies, disclosing that there have been discussions with the Public-Private Partnership Authority to list a government company such as North Al-Zour next year. He added, 'The launching of the second part of the third phase of the Capital Market Development Program -- the main station -- reflects the market system's commitment to continue development following international best practices.' He emphasized that 'this achievement is a qualitative shift in the development process of the market and it is the result of the concerted efforts of CMA, Central Bank of Kuwait, Kuwait Clearing Company, Boursa Kuwait, and our partners from banks, investment companies and financial brokerage companies.' He confirmed that this phase witnessed a comprehensive development of the operational and technical infrastructure, including strengthening the clearing and settlement system, upgrading and modernizing trading systems, and improving the market structure through the implementation of the 'Qualified Broker' model and the application of more accurate and transparent mechanisms for account management. He explained that this achievement affirms the readiness of the market for more advanced stages in the future, and a shared vision for an efficient and flexible financial market capable of supporting economic development and attracting investments. He confirmed Boursa Kuwait's commitment to continue this journey, in partnership with all stakeholders, to ensure sustainable development and enhance the position of Kuwait as an advanced regional financial center. On the other hand, Director of the Trading Department at CMA Khaled Al-Sahli stated that the second part of the third phase of the Capital Market System Development Program includes the provision of financial products. 'Trading and post-trading have been activated through the applicable systems, in addition to preparing the structure of the articles, executive regulations and the stock exchange rules,' he disclosed. Al-Sahli indicated that work is underway to approve the executive regulations after the completion of the rules and regulations for settlement and litigation in the Central Depository, which will happen soon. He asserted, 'This development step contributes to boosting confidence among foreign investors and increasing foreign inflows, especially with the implementation of the CPP.' He asserted that such steps taken by the Kuwaiti market open new horizons for brokerage firms. Abdul Karim Al-Yaqout – Director of Strategy and Product Development at Kuwait Clearing Company – pointed out that the third phase is the cornerstone in the process of developing the infrastructure for post-trade operations, led by CMA and implemented by Kuwait Clearing Company, in cooperation with Boursa Kuwait and the Central Bank of Kuwait. Al-Yaqout added that Kuwait Clearing Company plays a vital role in the areas of clearing, settlement, depository, collateral management and risk mitigation; thereby, contributing to the alignment of the Kuwaiti capital market with international standards, such as IOACO and PFMI. He affirmed that there is a reconciliation period extending six months from the start of the phase, in addition to another phase for transferring client funds to brokerage firms after obtaining their approval. He said a date has been set for this phase and July 17 is the deadline for this step Arab Times | © Copyright 2024, All Rights Reserved Provided by SyndiGate Media Inc. (
Arab Times
a day ago
- Business
- Arab Times
Boursa Kuwait to launch sukuk, bond trading in 2025
KUWAIT CITY, July 14: Chief Executive Officer (CEO) of Boursa Kuwait Mohammad Al-Osaimi said the timeline for debt instrument trading is proceeding as planned, indicating that sukuk and bonds will be traded in 2025. He affirmed that all technical tests for index funds and the bond and sukuk market have been completed, and the regulatory rules are currently being prepared and will be announced within the next few months. Al-Osaimi announced on the sidelines of the launch of the second part of the third phase of the Capital Market Development Program, which is a major milestone that reflects the market system's commitment to continue development per international best practices. Regarding the expected volume of debt instrument trading on the stock exchange, Al-Osaimi explained, 'The current value of commercial debt instruments does not exceed KD2 billion, but after the approval of the Debt Law, we aspire to list government bonds and sukuk'. He pointed out that the stock exchange has a development program extending over three or four years to introduce major updates to its trading system. He revealed 'we will begin testing the new trading system in the second half of 2026.' He stated that the stock exchange is cooperating with the Capital Markets Authority (CMA) to review several products to better present them, stressing that the introduction of the CCP and the Central Broker will help the stock exchange offer financial derivatives soon. He explained that these developments will lead to attracting foreign investments, coinciding with increased investor confidence. About amending the listing requirements on the main market, Al-Osaimi confirmed that 'when the reduction of listing requirements on the main market was approved by reducing the company's capital limit from KD15 million to KD5 million, we received numerous communications from subscription managers in this regard.' He anticipates listings shortly. He disclosed that two family companies are currently negotiating with the stock exchange for listing, explaining that the stock exchange intends to attract companies in various sectors, including commercial, government, and family businesses. He said the listing procedures and requirements are not easy, as companies are being reorganized and prepared for this step, which may require a period that may extend to several years. He clarified that there is currently no intention to list oil sector companies, disclosing that there have been discussions with the Public-Private Partnership Authority to list a government company such as North Al-Zour next year. He added, 'The launching of the second part of the third phase of the Capital Market Development Program -- the main station -- reflects the market system's commitment to continue development following international best practices.' He emphasized that 'this achievement is a qualitative shift in the development process of the market and it is the result of the concerted efforts of CMA, Central Bank of Kuwait, Kuwait Clearing Company, Boursa Kuwait, and our partners from banks, investment companies and financial brokerage companies.' He confirmed that this phase witnessed a comprehensive development of the operational and technical infrastructure, including strengthening the clearing and settlement system, upgrading and modernizing trading systems, and improving the market structure through the implementation of the 'Qualified Broker' model and the application of more accurate and transparent mechanisms for account management. He explained that this achievement affirms the readiness of the market for more advanced stages in the future, and a shared vision for an efficient and flexible financial market capable of supporting economic development and attracting investments. He confirmed Boursa Kuwait's commitment to continue this journey, in partnership with all stakeholders, to ensure sustainable development and enhance the position of Kuwait as an advanced regional financial center. On the other hand, Director of the Trading Department at CMA Khaled Al-Sahli stated that the second part of the third phase of the Capital Market System Development Program includes the provision of financial products. 'Trading and post-trading have been activated through the applicable systems, in addition to preparing the structure of the articles, executive regulations and the stock exchange rules,' he disclosed. Al-Sahli indicated that work is underway to approve the executive regulations after the completion of the rules and regulations for settlement and litigation in the Central Depository, which will happen soon. He asserted, 'This development step contributes to boosting confidence among foreign investors and increasing foreign inflows, especially with the implementation of the CPP.' He asserted that such steps taken by the Kuwaiti market open new horizons for brokerage firms. Abdul Karim Al-Yaqout – Director of Strategy and Product Development at Kuwait Clearing Company – pointed out that the third phase is the cornerstone in the process of developing the infrastructure for post-trade operations, led by CMA and implemented by Kuwait Clearing Company, in cooperation with Boursa Kuwait and the Central Bank of Kuwait. Al-Yaqout added that Kuwait Clearing Company plays a vital role in the areas of clearing, settlement, depository, collateral management and risk mitigation; thereby, contributing to the alignment of the Kuwaiti capital market with international standards, such as IOACO and PFMI. He affirmed that there is a reconciliation period extending six months from the start of the phase, in addition to another phase for transferring client funds to brokerage firms after obtaining their approval. He said a date has been set for this phase and July 17 is the deadline for this step
Kuwait Times
2 days ago
- Business
- Kuwait Times
CMA adds a new chapter to Kuwait capital market's growth story
KUWAIT: The Capital Markets Authority's (CMA) decision No (101) of 2025 regarding the launch of the second part of the third phase of the Capital Market System Development Program (CMSDP) will come into effect, thus opening a new chapter in the development of the Kuwaiti capital market. This phase represents an extension of the previous phases of the program, but what distinguishes it is the depth of changes that fundamentally affect the infrastructure of the capital market, reflecting the CMA's commitment to implement Law No (7) of 2010. Since the issuance of Resolution No (101) of 2025 last June, the CMA has worked to complete all the necessary procedures to launch this phase, including issuing the required licenses. Among the most notable of these procedures is the granting of the license to practice the activity of a central broker to the Kuwait Clearing Company, making it the first entity in the Kuwaiti market to engage in this activity. The granting of this license is an important step in the development of the market, as it reflects the CMA's commitment to implement the provisions of Law No (7) of 2010, especially since this activity is being practiced for the first time despite the fact that it is one of the activities provided for the Clearing Company. In a related context, ten brokerage firms were upgraded to the 'Qualified Broker' model, which enhances their ability to provide a wider range of financial services and products to their clients within the capital market system. The technical systems for offering bonds and sukuk as well as ETF indices, have been developed and tested, and draft amendments to the executive regulations of Law No (7) of 2010 have been prepared in preparation for the launch of these products in the market. It is expected that this approach will contribute to diversifying and expanding the range of financial services and products available on the stock exchange, thus enhancing the attractiveness of the market to investors. Work is also underway to finalize the necessary regulatory rules to enable the concerned authorities to carry out these operations efficiently and effectively. On the supervisory side, this phase included the establishment of sub-account numbers within the consolidated accounts, whether for investment or electronic portfolios, which increases the efficiency of the authority's supervisory work on Boursa Kuwait's trading. Emad Ahmed Tefouni, Chairman of the Board of Commissioners and Chief Executive Officer, said: 'The Capital Markets Authority (CMA), represented by the Board of Commissioners and all its employees, is very pleased to launch the second part of the third phase of the Capital Market System Development Program, which is a new achievement added to the CMA's track record of development initiatives. This program is one of the pivotal strategic projects of the CMA, as it consists of four vital projects that contribute to enhancing the efficiency of the market. The CMA extends its sincere thanks and appreciation to the Central Bank of Kuwait, Kuwait Clearing Company, Boursa Kuwait, brokerage firms, and all stakeholders and teams involved in the implementation of this program inside and outside the CMA, for their sincere efforts and fruitful cooperation that had a great impact in achieving this achievement. Tareq Abdullateef AlShehab, Member of the Board of Commissioners stated the following: 'The completion of the third phase of the Capital Market System Development Program is an achievement to be added to the CMA's track record of development initiatives. This phase is characterized by its outputs that had a significant impact on the market structure, which included the launch of the 'Central Broker' service and the implementation of the 'Qualified Broker' model, in addition to the qualitative changes in the work mechanisms of the relevant authorities, such as the completion of cash settlements through the Central Bank of Kuwait system and settlement banks, and the establishment of the financial collateral chain. 'On this occasion, CMA extends its sincere thanks and appreciation to the Central Bank of Kuwait, Kuwait Clearing Company, Boursa Kuwait, all brokerage firms, custodians, investment firms, and all those working on the program's projects in the various participating entities.' In this context, CMA emphasizes that the launch of this phase does not represent the end of the development process, but rather a launch towards broader horizons and more comprehensive plans aimed at upgrading the capital market system and enhancing its efficiency and robustness, in line with the aspirations of the State of Kuwait in the financial and economic field.'
Kuwait Times
2 days ago
- Business
- Kuwait Times
KCC: ‘Central Broker' project takes effect at Kuwait market
KUWAIT: As part of the second part of the third phase of the market development program, the Capital Markets Authority (CMA), in cooperation with Kuwait Clearing Company (KCC) and Boursa Kuwait, announced that the 'Central Broker' project will come into effect as of Sunday. This project represents a radical transformation in the infrastructure of the Kuwaiti securities market, as it will have a far-reaching positive impact in enhancing market stability, improving risk management, and supporting the development of innovative financial products. This project is a milestone in the modernization of Kuwait's financial market infrastructure. The establishment of the Kuwait Clearing Company (KCC) as the central intermediary marks a milestone in the development of the Kuwaiti financial market, reflecting a firm commitment to building a more robust and transparent environment for investors, in accordance with international best practices. In the near term, the new mechanism will contribute to enhancing market stability by reducing the risks associated with settlement processes. The Kuwait Clearing Company will act as an intermediary between the buyer and seller of securities transactions, ensuring that financial obligations are executed efficiently by both parties. This contributes to increasing confidence, especially among institutional investors, allowing for increased liquidity and more efficient settlements while minimizing operational risks. For investors, the presence of a central broker provides higher protection and better operational efficiency, and paves the way for the introduction of advanced financial instruments such as derivatives, thus expanding the base of available investment products. In the long term, this approach strengthens Kuwait's position as a regional financial center, opens the way for greater participation by foreign investors, and supports the market's inclusion in the ranks of developed global markets, in line with Kuwait's Vision 2035. Additional projects launched in the second part of the third phase of the market development program. In addition to the launch of the Central Broker, the current phase witnessed the implementation of several important projects, most notably: •Completion of cash settlement through settlement banks and the Central Bank of Kuwait system. •Introducing the 'Qualified Broker' form. •Establishing a sub-account number within the consolidated accounts. •Preparing the legislative and operational environment for the introduction of new products such as ETFs, bonds and sukuk, which will soon come into effect. •Modifying the settlement mechanism using the delivery versus payment model (DvP Model 2) •Implementation of the Risk Waterfall Model Strategic transformation in clearing As part of its efforts to develop its corporate structure and implement the highest standards of governance, Kuwait Clearing Company (KCC) established two separate legal entities: •Kuwait Clearing Company (KCC), which is the entity licensed to carry out clearing agency activity, which includes the provision of clearing, settlement and central intermediary services. •Kuwait Central Depository Company (KCDC), the entity authorized to provide securities depository services. This corporate structure aims to apply the highest standards of governance and ensure clear segregation of duties, in line with international best practices, and promotes clear operational and organizational boundaries between clearing, settlement and depository functions. Rigorous testing enhances market readiness Since 2022, KCC has intensified its efforts in collaboration with the Capital Markets Authority and Boursa Kuwait to carry out 31 comprehensive tests covering all key market sectors, including brokerage firms, custodians, the Central Bank, local banks and investment firms. These tests aim to ensure the readiness of the technical infrastructure and the efficiency of the operational integration of the entire chain of operations. Fahad Abdulrahman Al-Mukhaizim, Chairman of Kuwait Clearing Company, said: 'The launch of the third phase of the market development project is a strategic milestone that reflects Kuwait Clear's commitment to its role as a central financial institution that contributes to market stability and efficiency. This phase is in line with global shifts in the field of financial market infrastructure, focusing on developing the central clearing house (CCP) model and implementing more flexible and transparent systems to enhance security and minimize risks for the participating parties.' Al-Mukhaizim emphasized that: 'Kuwait Clearing Company sets its sights on strengthening the position of the Kuwaiti market in the ranks of emerging and developed markets, and continues to work to expand its services and link it to regional and international markets, in order to serve investors and achieve the goals of economic development in the State of Kuwait.' We highly appreciate the active role of the Capital Markets Authority in developing the trading system and the continuous support of Boursa Kuwait. On the occasion of the launch of the third phase of the market development project, Duaij Raad Al-Saleh, Chief Executive Officer of Kuwait Clearing Company, said: 'This phase of the market development project is an extension of an ambitious vision that Kuwait Clearing Company (KCC) is working on in partnership with the Capital Markets Authority (CMA) and Boursa Kuwait to enhance the efficiency of Kuwait's capital market infrastructure and increase its competitiveness regionally and globally. During this phase, the company has been keen to implement innovative solutions and apply international best practices in the areas of post-trade services, including clearing, settlement and centralized depository, while expanding collateral services and linking with related systems, which will enhance investor protection and ensure the integrity of transactions.' He added: 'We are working in an integrated effort with all stakeholders to ensure a smooth transition to the upgraded systems, and we are proud of our pivotal role in supporting market development and providing advanced services based on technology and a sustainable institutional structure.'
The National
2 days ago
- Business
- The National
Saudi Arabia allows Gulf residents to invest in Tadawul stock market
Saudi Arabia has opened its stock exchange to residents of Gulf countries, who are now allowed to invest directly in the kingdom's main Tadawul market. This move is expected to help attract more foreign direct investment into the Arab world's largest bourse. The approved amendments also allow individual foreign investors who previously resided in Saudi Arabia or other countries Gulf countries to continue investing in listed equities on Tadawul even after their residency expires, the market regulator, the Capital Markets Authority (CMA) said. 'This step enhances the market's international openness and simultaneously builds a long-term investment relationship with broader segments of investors worldwide, within a more flexible and attractive regulatory environment,' Mohammed El-Kuwaiz, chairman of the CMA, said in a post on social media platform X. Previously, Saudi investment by residents of the six-member economic bloc of the Gulf Co-operation Council was limited to the debt market, the parallel market 'Nomu', investment funds, and the derivatives market. Their ability to trade in the main market was 'limited to swap agreements as ultimate beneficiaries through capital market institutions or as clients of these institutions, where investment decisions are made on their behalf', the CMA said. The new measures come as Saudi Arabia continues to open its economy to foreign investors as part of its Vision 2030 programme. Saudi Arabia launched its Vision 2030 programme in 2016 to diversify its economy away from oil, support private-sector growth, improve female workforce participation and reduce unemployment among citizens. In recent years, the kingdom has introduced new laws, including companies law and civil transactions law, to attract more foreign investment. Last week, it also updated its rules to allow foreigners to buy property in specific zones in Riyadh and Jeddah, with 'special requirements' for home ownership in Makkah and Madinah. Development of the kingdom's financial markets is also a central plank of the kingdom's economic overhaul and CMA, like its peers in the other GCC markets, is consistently updating regulations to make capital markets more attractive to local, regional and foreign investors. Separately, Kuwait on Sunday announced it will start listing and trading of exchange-traded funds, sukuk and bonds on the Kuwait Stock Exchange in 2025, Reuters reported quoting Boursa Kuwait chief executive Mohammed Saud Al-Osaimi. Stock markets in Saudi Arabia and across the gulf region have also seen a surge in initial public offerings amid growing investor demand over the past few years. Last year, the kingdom led the Gulf region in IPO volumes with 15 listings on Tadawul and 27 share offerings on the Nomu market, raising more than $4.3 billion, according to a recent PwC report. Markets in the UAE, Oman, Bahrain and Kuwait also maintained robust IPO momentum last year.
