Boursa Kuwait, established in 2014 as the first step towards privatising the Kuwait Stock Exchange (KSE), has announced that it has officially assumed responsibility for the management of KSE’s activities. The handover follows the implementation of a detailed operational and strategic plan to ensure the smooth transition of stock market operations which was developed in close collaboration with the Capital Markets Authority (CMA).
The changes also mean that Boursa Kuwait’s Board of Directors has replaced KSE’s committee, whose duties have ceased. The transition period is scheduled for completion by 30 September 2016, when Boursa Kuwait will obtain its official license to replace KSE, and at a later stage, prepare for an Initial Public Offering (IPO).
The transition period is scheduled for completion by 30 September 2016.
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After its first day trading as the official operator of the market, Chairman of the CMA Board of Commissioners, Dr Nayef Falah Al-Hajraf, said: “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, collaborating with other government stakeholders and determining a stake for an international operator.”
In order to establish Boursa Kuwait, a pool of experts was brought in to devise a transitional strategy which included meetings with stakeholders including banks, licensed companies, brokerage firms, governmental entities and listed companies. The long term plan involves the creation of a dynamic financial market with a strong structure that qualifies it to be a leader in the ranks of developing markets in the world.
The focal point of Boursa Kuwait’s operations is the successful completion of the transition phase as well as the enhancement of the overall market status. It plans to achieve this by introducing new products and tools, upgrading KSE’s infrastructure and business environment to international standards and creating a robust, transparent and fair capital market platform that services all relevant asset classes, whilst focusing on clients’ interests.
After facing several challenges since its inception in 1952, the creation of the CMA and its success in making a radical change by privatising the Kuwait stock market has resulted in today’s transition of operations to Boursa Kuwait.