Boursa Kuwait has officially assumed responsibility for the management of the Kuwait Stock Exchange’s (KSE) operations, it announced today.

The hand-over follows the implementation of a detailed operational plan and strategic roadmap to ensure the smooth transition of stock market operations.  The process has been developed in close collaboration with the Capital Markets Authority (CMA).

The announcement was made at a joint press briefing at the stock exchange headquarters by the chairman of the CMA board of commissioners Dr Nayef Falah Al-Hajraf, CMA board commissioner Khalifa Al-Ajeel, who directed the hand-over operation, and vice chairman and CEO Boursa Kuwait, Khaled Abdulrazzaq AlKhaled.

Today’s changes also mean that Boursa Kuwait’s board of directors has replaced KSE’s committee, whose duties have ceased. In addition, Boursa Kuwait’s CEO has been officially assigned as the director of the market.  The transition period is scheduled for completion by September 30, when Boursa Kuwait will obtain its official license to replace KSE, and at a later stage, prepare for an initial public offering (IPO).

Al-Hajraf commented: “Today we have taken the first step on the road to privatizing the Kuwait Stock Exchange and we are looking forward to working closely with Boursa Kuwait’s management on making further progress.  This will include the development of investment tools, restructuring the market to increase its competitiveness, working to increase liquidity and attract investments with a view to issuing an IPO to Kuwaiti citizens, collaborating with other government stakeholders and determining a stake for an international operator.”

“Starting today, Kuwait’s stock exchange is managed by the Kuwaiti private sector, which has always been a leading and creative economic force.  We are very confident in the capabilities of Boursa Kuwait management in translating its development plans and strategies into an efficient, transparent and accessible stock market that both meets the aspirations of Kuwaitis,” he added.

Commenting on the CMA’s role, Al-Ajeel said: “All the CMA divisions have worked throughout the past period with stakeholders such as the Kuwait Clearing Company, Kuwait Stock Exchange (KSE), and Boursa Kuwait.  We had more than 1,500 hours of recorded meeting time resulting in 20 regulatory resolutions, and we archived more than 95 million documents that date back to the establishment of the market 33 years ago.  This was a great effort by all involved and I would like to thank the teams for their professionalism and commitment.”

Al-Ajeel also pointed that the CMA has worked to create a suitable legal environment, organising its regulations to accommodate this significant institutional change, for the benefit the financial markets and the Kuwaiti economy as a whole.

Speaking about the preparations for Boursa Kuwait’s assumption of management responsibility, AlKhaled said: “For the past year, we have worked hard to establish Boursa Kuwait, in order for it to be properly prepared to take the place of KSE. We brought in a pool of experts and devised a transitional strategy which included intensive meetings with stakeholders, such as companies, banks, licensed companies, brokerage firms, governmental entities and listed companies. We also worked very closely with the CMA, which has been very supportive throughout and is keen to develop the current status of the Kuwait stock market. We will continue to work with the CMA until the transition phase is completed and Boursa Kuwait will be officially licensed to be the sole operator.” – TradeArabia News Service