Title: Press Release: The Capital Markets Authority Launches the Second Batch of the Third Phase of the Market Development Project

Kuwait, July 12, 2025 - Resolution No. (101) of 2025 Regarding Entry into Force of the Second Batch of the Third Phase of the Market Development Project, enters into force tomorrow Sunday July 13, 2025, announcing the commencement of a new chapter in the development of the Kuwaiti capital market.

This phase represents an extension of the previous phases of the program, distinguished by the depth of the changes that affect the infrastructure of the capital market essentially, which reflects the CMA’s commitment to implement Law No. 7 of 2010.

The CMA worked, since the issuance of Resolution No. (101) of 2025 last June, to complete all the required procedures to launch this phase, including the issuance of the required licenses. The most prominent procedure is granting a license to practice the activity of Central Counterparty to Kuwait Clearing Company, to be the first entity in the Kuwaiti market to undertake this activity.

Granting this license is an important step in market development, embodying the CMA's commitment to implement the provisions of Law No. 7 of 2010, particularly that this activity is being undertaken for the first time, despite being one of the activities stipulated for the Clearing Agency. The central counterparty is expected to contribute to enhancing the efficiency of the market's infrastructure, raising the level of transparency, and reducing common risks.

In a related context, the CMA promoted ten financial brokerage companies to a “Qualified Broker” model enhancing its abilities to offer diverse financial services and products to clients among capital markets.

Technical systems for issuing bonds and sukuks, as well as exchange-traded fund indices, have also been developed and tested. A draft amendment to the Executive Bylaws of Law No. 7 of 2010 has also been prepared, in preparation for the launch of these products on the market. This directive is expected to contribute to diversifying and expanding the scope of financial services and products available on the securities exchange, enhancing the market's attractiveness to investors. Work is ongoing to complete the necessary regulatory rules to enable the relevant entities to implement these operations efficiently and effectively.

From a regulatory perspective, this phase included the establishment of sub-account numbers within omnibus accounts, whether for investment portfolios or electronic accounts, thus enhancing the efficiency of the CMA's supervision of Boursa Kuwait trading.

In this context, Mr. Emad Ahmed Tifouni, Chairman of the Board of Commissioners and Managing Director, said:

"The Capital Markets Authority, represented by the Board of Commissioners and staff, expresses its great pleasure with the launch of the second batch of the third phase of the Capital Market Development Program, which represents a new accomplishment that complements the CMA's rich record of development initiatives. This program is one of CMA's crucial strategic projects, as it includes four vital projects that contribute to enhancing market efficiency.

The CMA also extends its sincere thanks and appreciation to the Central Bank of Kuwait, Kuwait Clearing Company, Boursa Kuwait Securities Company, the financial brokerage firms, all concerned parties, and the teams involved in implementing this project, both inside and outside the CMA, for their sincere efforts and productive cooperation, which had a significant impact on achieving this accomplishment.

The CMA confirms its full commitment to implementing the provisions of Law No. 7 of 2010, the completing the process of development and achievement, and continuously working towards strengthening the financial and economic status of the State of Kuwait."

Mr. Tareq Abdullateef AlShehab, Member of the Board of Commissioners and Chairman of the Capital Market Development Committee, stated the following:

"The completion of the third phase of the Capital Market Development Program is an achievement that adds to CMA's lengthy record of development initiatives. This achievement would not have been possible without the determined efforts and productive coordination among all relevant entities.

This phase is distinguished by its outputs that  had a fundamental impact on the market structure, including the launch of the "Central Counterparty" service and the implementation of the "Qualified Broker" model, in addition to the accompanying qualitative changes in the working mechanisms of relevant entities, such as the completion of cash settlements through the Central Bank of Kuwait and settlement banks, and the establishment of a financial guarantee chain.

On this occasion, the CMA extends its sincere thanks and gratitude to the Central Bank of Kuwait, Kuwait Clearing Company, Boursa Kuwait Securities Company, all financial brokerage firms, custodians, investment companies, and all those working on the project programs across the various participating entities.

In this context, the CMA confirms that the launch of this phase does not represent the end of the development process, but rather represents the start of larger prospects and further determined plans that aim to advance the capital market and enhance its efficiency and strength, in line with the aspirations of the State of Kuwait in the financial and economic fields.”

Ends-
Notes to Editors:
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010. Pursuant to the Law, the CMA shall regulate and supervise the securities activities, achieve transparency and fairness, observe listed companies’ execution of Corporate Governance regulations, and protect investors from unfair practices which violate the CMA's Law.

Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs related to securities activities.

For further information, please contact:
Public Relations & Media Office
Tel: 1888898
Email: pr-media@cma.gov.kw