The Federation of Euro-Asian Stock Exchanges
Boursa Kuwait
Mohammad Al Osaimi
Chief Executive Officer
About Company
Established: April 21st, 2014
Address: Mubarak Al Kabeer Street, AlSharq, Kuwait
P.O.Box 22235 Safat, 13083 Kuwait
Email: [email protected]
Website: www.boursakuwait.com.kw/
- Joined FEAS in 2018-
Established in 2014, Boursa Kuwait is the operator of the Kuwait Stock Exchange, the national stock market of Kuwait. Since 2016, it has been responsible for driving engagement, growth and innovation in the Kuwaiti capital market, while supporting the Capital Markets Authority, issuers, investors and various other key stakeholders.
Since its inception, Boursa Kuwait has played a pivotal role in the development of Kuwait’s capital market and the diversification of the national economy, in line with the goals of Kuwait Vision 2035.
Guided by a mission-driven strategy that focuses on developing the market in line with international standards, Boursa Kuwait has successfully introduced innovative investment tools, reinforced transparency, and restructured the market to increase its competitiveness and liquidity.
The company’s market developments and enhancements have contributed to the reclassification of the Kuwaiti capital market to “Emerging Market” status in the world’s top three indices, strengthening Kuwait’s position as a leading financial center in the region.
A trailblazer in Kuwaiti privatization, Boursa Kuwait underwent a privatization process over two stages, the first in February 2019, when a 44% equity stake was awarded to an international exchange and a group of Kuwaiti investment companies in early 2019.
In December 2019, the privatization process was finalized after the initial public offering of the Capital Markets Authority’s 50% stake in the company was offered to Kuwaiti citizens, with an oversubscription rate of 850 percent making Boursa Kuwait the only stock exchange in the Middle East owned by the private sector.
In September 2020, Boursa Kuwait self-listed on the “Premier Market”, and is one of the government entities in Kuwait to successfully undergo privatization.
Boursa Kuwait’s research identified the main challenges facing the Kuwaiti capital market, which were a lack of incentives to list, low liquidity and poor evaluations, a scarcity in research and reports covering the market and its participants. Due to manual disclosure methods, essential and vital information took too long to reach investors. Alternative trading platforms and a wide selection of products was also absent from the local market, as well as a difficulty to execute large transactions. A unit price system that doesn’t contribute to putting buyers closer to sellers was also in place.
Four main pillars were put in place to address these challenges, represented in infrastructure, liquidity, transparency and products, each of which was addressed through a series of solutions.
The company continues on its strategy to create an attractive investment environment, progressing with the process of restructuring and officially receiving all the tasks of managing the Kuwaiti stock exchange. It has implemented many steps to keep pace with international practices and standards, forging ahead towards a bright future in which Kuwait is a regional and global investment destination and putting in place a multi-pillared plan to achieve its mission and vision, outlined below.
Increasing the issuer base through the adoption of best-in-class international practices and standards, as well as launching campaigns and creating new investment opportunities by sponsoring conferences and putting on roadshows and corporate days all over the world.
Creating an attractive issuer base through market segmentation and new listing rules to help increase liquidity and attracted companies to list on the stock exchange as well as creating alternative investment opportunities such as the Over the Counter (OTC) platform.
Overview