Interview with Mr. Mohammad Saud Al-Osaimi

Wednesday, 26 February 2020

Posted

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 a deep conviction that visibility is a pivotal market driver set to reaffirm the investors’ informed decisions. In order to improve such a driver, Boursa Kuwait supplies investors with quarterly and annual updates of e-income statements, balance sheets, cash flow statements and financial ratios, as well as daily updates on a number of ratios according to closing price, and charting and comparability capabilities through its many partners.

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.