Kuwait has launched a major step in transforming the Kuwait capital market to make it stronger and more globally competitive. The latest phase focuses on upgrading infrastructure, adding new investment tools, and raising regulatory standards to attract more local and foreign investors.
This transformation program is led by the Capital Markets Authority. It is supported by the Central Bank of Kuwait, Boursa Kuwait, the Kuwait Clearing Company, and private-sector partners. Together, they aim to create a more efficient and transparent investment environment.
One of the biggest achievements is the introduction of the Central Counterparty (CCP) framework. This system improves clearing and settlement by offering more guarantees and reducing financial risks. It also brings the Kuwaiti market closer to global standards.
Other major improvements include enabling cash settlements through local banks using advanced systems. The program also upgraded brokerage firms to Qualified Broker status. These steps make trading more efficient and secure for all investors.
Additionally, the market introduced sub-account numbers under omnibus accounts. This change improves tracking and boosts transparency across all trading activities. It also strengthens the rules and oversight that support market stability.
Boursa Kuwait played a key role in getting the technical systems ready. The exchange upgraded its infrastructure to support new products like Exchange-Traded Funds, bonds, and sukuk. These upgrades also set the stage for future financial tools such as derivatives.
Work is also ongoing to update laws for these products. Once approved, the market will be ready to offer more flexible and advanced investment choices. These choices will meet the needs of both the public and private sectors.
Boursa Kuwait Chairman Bader Nasser Al-Kharafi said this transformation is a big step forward. He highlighted how teamwork between the public and private sectors helped make this vision a reality. He also praised the dedication of every group involved in the project.
Mohammed Saud Al-Osaimi, CEO of Boursa Kuwait, said the new systems show Kuwait’s commitment to modernizing its financial market. He explained that these upgrades make the Kuwait capital market more diverse, stronger, and ready for future growth.
The market’s new design also supports Kuwait’s larger economic goals. It offers more ways for companies to raise money and for investors to find new opportunities. As a result, Kuwait becomes more attractive to international capital.
These efforts reflect a long-term plan to create a flexible, stable, and secure capital market. The Kuwait capital market is now better equipped to support economic growth and help the country achieve its vision of becoming a top regional financial center.
