Boursa Kuwait has announced that the Emerging Companies Market (ECM) was ready for launch and would begin accepting listing applications after completing successful technical tests, thus marking the latest step in its efforts to broaden the country's capital markets.

The Exchange announced the development during an event on Kuwait's capital market outlook held in collaboration with the Middle East Investor Relations Association (MEIRA).

The ECM is expected to provide smaller and high-growth companies with a dedicated platform to access capital, expanding investment opportunities and supporting the development of Kuwait's equity market.

Speaking at the event, Ahmad Mohammad Al-Jasem, Senior Director of Product Development and Data Services at Boursa Kuwait, said the exchange had completed key infrastructure upgrades under its Market Development Programme, including the implementation of a central counterparty (CCP) system, cash settlements through the Central Bank of Kuwait's KASSIP platform, qualified broker upgrades and enhancements to closing auction mechanisms.

He pointed out that the reforms had strengthened the resilience of the market's clearing and settlement infrastructure, improved operational efficiency and laid the groundwork for the launch of new products and services.

Al Jasem said Boursa Kuwait is planning to introduce fixed-income instruments, including bonds and sukuk, exchange-traded funds (ETFs) and financial derivatives as part of its strategy to deepen the market and broaden investment options.

The Exchange said the reforms are intended to improve market efficiency and attract a wider range of issuers and investors.

The announcement came during a forum attended by exchange officials, economists, investor relations professionals and listed companies, where participants discussed the impact of regional geopolitical tensions on markets.

The experts highlighted the importance of listed companies remaining prepared to navigate these developments by maintaining clear communication channels and ensuring timely disclosure to preserve market confidence.

"The strategic partnership between Boursa Kuwait and MEIRA reflects our shared commitment to strengthening the foundations of investor relations across Kuwait’s capital market," remarked Fahad Abdulmohsen AlBesher, the Investor Relations Director at Boursa Kuwait. 

"Effective investor engagement, transparent disclosure and consistent corporate communication are no longer supplementary practices and have become essential to strengthening market confidence, reinforcing corporate credibility and supporting long-term capital formation," he stated.

According to him, Boursa Kuwait continues to support listed companies in adopting the latest international best practices to enhance the effectiveness of investor communication and reinforce Kuwait’s position as a trusted investment destination. 

In his presentation, Senior Director of Product Development and Data Services Ahmad Mohammad Al Jasem showcased the progress of the Market Development Program, highlighting the pivotal role of structural reforms in enhancing the resilience of the operational environment, its ability to absorb volatility and the stability of trading amid the prevailing geopolitical uncertainty.

The event also featured a fireside chat examining the key dimensions of the current economic landscape. Moderated by Eman Alawadhi, Group Senior Vice President of Corporate Communications and Investor Relations at KIPCO, the session hosted Chief Economist at the National Bank of Kuwait Daniel Kaye, who presented an insightful analytical framework for the investment community and listed companies, exploring the direct and indirect implications of geopolitical developments for the local and regional business environment.

Discussions covered their impact on energy markets, shipping activity through the Strait of Hormuz, banking liquidity and credit growth, as well as the resulting implications for Kuwait’s sovereign credit rating and the resilience of its financial sector.

They also highlighted the pivotal role of IR professionals during periods of uncertainty. Participants agreed that clear and consistent disclosure is no longer merely a regulatory requirement, but a strategic tool that enables companies to communicate their operational and financial resilience and helps markets assess risks fairly without being driven by short-term shifts in sentiment.

Speaking at the event, Mohammad Abdal, Head of the MEIRA Kuwait Chapter and Chief Corporate Affairs and Communications Officer at Zain Group, said: "This meeting reflects the active role that Boursa Kuwait plays in advancing investor relations practices and strengthening communication between listed companies, capital markets and the investment community."

"Our engagements have become even more significant today, as rapidly evolving geopolitical developments and heightened uncertainty across the region have established new expectations for corporate communication," he stated. 

"At the same time, rising expectations from the investment community place greater responsibility on listed companies to enhance the quality of their disclosure, uphold transparency and maintain consistent communication in line with international best practices," he added.-TradeArabia News Service