Newsletter December 2019, Issue 4 | Página 4

4

1. How is Boursa Kuwait keeping up with the new developments and improvements of the capital market?

- Our Market Development plan is in its third phase, which includes the introduction of

products like real estate investment trusts (REITs), short selling and SLBs, security swaps

and tender offers. We’re constantly building on that and making sure we meet the highest

international standards and best in class practices to satisfy the needs of our issuer and

investor bases. Our commitment to raising the standards of the Kuwaiti capital market,

which has recently seen upgrades in both the FTSE Russell and S&P Dow Jones indices, is a further indictment of our commitment to excellence.

2. How has Boursa Kuwait improved its standing in the global investment community?

- We have been working with partners from across the capital markets community, locally

and abroad, to introduce new products and services. Additionally, Boursa Kuwait’s

continuous pursuit of international recognition, accreditation and upgrades from

international credit ratings agencies and indices providers, such as MSCI or FTSE

Russell and S&P Dow Jones, entails compliance with global transparency standards.

Boursa Kuwait has also been active with regional and international roadshows and

corporate days, raising awareness about emerging investment opportunities in the

Kuwaiti capital market while showcasing its attractive and diverse issuer base as well as

the recent milestones in its market development journey.

3. In what ways can Boursa Kuwait encourage further diversification of issuers and local

investors?

Boursa Kuwait is keen to diversify and develop its product portfolio in line with

international standards, taking solid steps towards continuously introducing new

products and services that address market and investor needs as well as reflecting the

pace at which Boursa Kuwait is operating and rolling out its market developments and

elevating market offerings. Driven by its market development strategy, the stock

exchange is focused on infrastructural upgrades, regulatory reforms and the

diversification of offerings in a bid to improve the business environment, and expand its

issuer and investor bases.

Changes in listing requirements have helped encourage more companies to list. The free

float amount is now a fixed number, which aims to solve the previously ‘unattractive’

issuers’ base for family businesses and government entities, while the increase of total

shareholders helps address liquidity. New requirements for profitability, whereby listed

companies no longer need to show 5% of paid-up capital or 75% revenue from the

operation, just proof of operations from certified auditors, gave market participants the

opportunity to invest in newly established companies and startups.

4. What are the next steps for Boursa Kuwait and the development of the Kuwaiti capital

market?

Phases 3.2 and 4 of our Market Development plan, which we hope to launch in the next

few years, and are working with our partners in the Capital Markets Authority and the

Kuwait Clearing Company to finalize, will feature derivatives. Over the past few years, we

have made a substantial difference at the company and we continue to pioneer this journey of

growth and raise the profile of the stock market regionally and internationally. We are constantly

expanding our portfolio with products and services such as intentional crossing orders and

omnibus accounts and offering more promising investment opportunities to increase market

liquidity. At Boursa Kuwait, we strive to contribute to the development of Kuwait's economy and

participate in the achievement of the country's development goals.

Interview with the CEo of Boursa Kuwait

Mr. Mohammad Saud Al-Osaimi

Over the past few years, we

have made a substantial difference at the company and we continue to pioneer this journey of growth and raise the profile of the stock market regionally and internationally.

At Boursa Kuwait, we strive to contribute to the development of Kuwait's economy and

participate in the achievement of the country's development goals.