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Boursa Kuwait and Kuwait Clearing Company strengthen the Kuwaiti capital market's presence in Asia

Boursa Kuwait and Kuwait Clearing Company strengthen the Kuwaiti capital market's presence in Asia

Al Bawaba15-04-2025

As part of their efforts to enhance the Kuwaiti capital market's stature within the global investment community, Boursa Kuwait and the Kuwait Clearing Company organized a virtual roadshow for Asian investors on Monday, April 14, 2025, in collaboration with HSBC, one of the largest banks in Europe.
The roadshow, the first of its kind in the Asian continent, provided Boursa Kuwait and Kuwait Clearing Company (KCC) with a unique opportunity to engage with some of the largest and most prominent asset managers in Asia. The two companies met with 13 investment companies, including banks, asset management firms and sovereign wealth funds, shedding light on Boursa Kuwait's journey since its privatization, its subsequent listing on the 'Premier' Market, and its instrumental role in the reclassification of Kuwait's capital market to 'Emerging Market' status by leading global index providers.
The discussions also covered the latest developments in the Kuwaiti capital market, as well as key investment opportunities, products, and services tailored for institutional investors.
The participating Asian investors praised the strong reputation and prominent standing of the Kuwaiti capital market within the region, citing its operational efficiency and firm commitment to international standards. They also commended the market's high level of transparency, emphasizing the diligence of regulators and market participants in providing accurate, timely information—an approach that reinforces investor confidence and reflects the market's dedication to a well-regulated and transparent investment environment. The investors further expressed a clear interest in expanding their exposure to the Kuwaiti market and exploring deeper avenues of collaboration.
Representing Boursa Kuwait during the roadshow were Chief Executive Officer Mr. Mohammad Saud Al-Osaimi and Head of Markets Sector Noura Al-Abdulkareem, who were joined by KCC CEO Mr. Duaij Raed Al-Saleh.
'Capital markets in the region are witnessing growing interest from institutional investors across Asia, and the Kuwaiti capital market is central to this expanding trend. Boursa Kuwait remains committed to fostering strong, long-term partnerships with the Asian investment community by enhancing engagement, strengthening communication channels and keeping investors informed about the latest developments in the Kuwaiti capital market,' said Boursa Kuwait's Chief Executive Officer Mr. Mohammad Saud Al-Osaimi.
He added, 'Through our participation, we also aim to showcase the diverse investment opportunities, products and services tailored to meet the evolving needs of institutional investors. This initiative is part of a broader strategic plan to enhance the appeal of the Kuwaiti capital market, expand the range of financial instruments and deepen market liquidity—ultimately opening new avenues for both local and international investors and underscoring the strength, resilience and forward-looking vision of Kuwait's capital market.'
Boursa Kuwait is currently working with its partners in the capital market apparatus to launch the central counterparty (CCP) system as a foundation for introducing new financial instruments, including exchange-traded funds and a fixed-income platform with bonds and sukuk, which are set to be rolled out in the next few months. The bourse is also preparing to implement the fourth phase of its comprehensive market development (MD) plan, which will include the introduction of financial derivatives.
Commenting on his company's participation in the roadshow, Kuwait Clearing Company CEO Mr. Duaij Raed Al-Saleh said, 'Kuwait Clearing Company continues to play a vital role in fostering a capital market built on security, transparency and investor protection. This constructive dialogue with a distinguished group of Asian investors allowed us to highlight how our market infrastructure and post-trade services are evolving to meet the growing needs of international investment institutions.'
Over the past few years, the Kuwaiti capital market apparatus has implemented a series of enhancements and structural reforms, particularly within the clearing and settlement framework, to better meet the needs of international investors. These improvements include accelerating the opening of trading accounts for foreign clients, streamlining the transfer process between custodians and introducing the concept of partial settlement rejection, giving foreign investors greater flexibility in managing their obligations.
The introduction of omnibus accounts has further optimized order flow and reduced transaction volume by enabling institutional and foreign funds to execute trades through a single consolidated account, with post-trade allocation to beneficiaries completed seamlessly upon execution.
In addition, an updated, fully automated version of the electronic general assembly meeting (eAGM) system, which is mandatory for listed companies, has been launched, allowing investors to participate and vote through multiple, user-friendly channels.
Other key developments include an enhanced mechanism for foreign investor participation in initial public offerings (IPOs), aimed at boosting cross-border investment, as well as the introduction of a Securities Lending and Borrowing (SLB) framework which broadens the range of financial instruments available in the market and offers investors increased flexibility and strategic options.Boursa Kuwait and the KCC play a pivotal role in the development of the Kuwaiti capital market and the diversification of the national economy and have remained steadfast in their dedication to establishing a transparent, efficient and advanced exchange platform, which has led to the creation of a liquid capital market. Boursa Kuwait and the KCC's unwavering commitment to promoting the Kuwaiti capital market and its participants through a series of Roadshows and Corporate Days has also helped provide prospective institutional investors worldwide with profound insights into the market's opportunities.
Since Boursa Kuwait took over operations of the Kuwaiti stock exchange, the Kuwaiti capital market has undergone an unprecedented development thanks to the diligent efforts of the capital market apparatus. Their focus on empowering participants and raising standards has resulted in several key initiatives, including the diversification of products and services, establishing an appealing investment platform, expanding the issuer base, and adapting rules and regulations to meet market demands.
The apparatus has also significantly enhanced the market's infrastructure and fostered an attractive investment environment, which resulted in the Kuwaiti capital market's reclassification to an Emerging Market by three prominent global index providers, and solidified Kuwait's position as a leading financial center in the region.
© 2000 - 2025 Al Bawaba (www.albawaba.com)
Signal PressWire is the world's largest independent Middle East PR distribution service.

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