Q: 3. What are Boursa Kuwait’s Core Values?

The Core Corporate Values of Boursa Kuwait are: Accountability : We take responsibility for our performance in the eyes of all. We are ready to be held accountable for our individual actions and to receive commensurate rewards for our hard work and achievements. Prudence : We continuously strive to achieve sustainable profits and returns for everyone, and are committed to taking prudent steps, stemming from our understanding of the risk factors that our organization and our clients are exposed to. Our diligence in managing these factors mitigates risks. Client Impact : We are results-oriented and strive to make a difference. We create sustainable impact with our work in our industry and communities while delivering on our sustainability commitments. Professionalism : We adhere to widely accepted, proven international standards in our work. We deal with our customers, colleagues, and all stakeholders in the utmost professional manner.

Question 1

1. What is the status of Boursa Kuwait?

Accepted Answer

Boursa Kuwait was established in April 2014 by the Capital Markets Authority Commissioners’ Council Resolution No. 37/2013, dated November 20, 2013. On April 25, 2016, Boursa Kuwait was entrusted to operate Kuwait Stock Exchange, and on October 5, 2016, the Capital Markets Authority, in its capacity as the regulator of securities activities, granted Boursa Kuwait an official license to practice the activity of a securities exchange, paving the way for the privatization of the company.

Since its inception, and through the scope of its strategy, Boursa Kuwait has played a pivotal role in the development of Kuwait’s capital market, adopting the best-in-class international standards.

The company has strived valiantly to meet the needs of the market, offering competitive investment products and services and restructuring the market and its infrastructure to increase its efficiency and effectiveness by increasing liquidity, raising investor confidence, and attracting investments on both the local and international levels.

The reforms implemented by Boursa Kuwait through diligent planning in collaboration with its partners – the Capital Markets Authority and the Kuwait Clearing Company – are a testament to the success of the company’s strategy to reach and attract foreign institutional investors and a strong indicator of investors’ confidence in the market and their willingness to invest in Kuwait.

Question 2

2. What is Boursa Kuwait’s Vision and Mission?

Accepted Answer

Boursa Kuwait’s vision is to develop a strong and efficient financial market with liquidity and transparency, that can effectively put issuers and investors in touch with one another for investment opportunities and high returns on investment to create a developed capital market that is a pioneer in the region. The company’s mission is to develop an effective and fair platform for trading with high transparency, one that is able to provide financial and investment services efficiently for all, with a focus on excellence in each service we provide.

Question 3

3. What are Boursa Kuwait’s Core Values?

Accepted Answer

The Core Corporate Values of Boursa Kuwait are:

Accountability: We take responsibility for our performance in the eyes of all. We are ready to be held accountable for our individual actions and to receive commensurate rewards for our hard work and achievements.
Prudence: We continuously strive to achieve sustainable profits and returns for everyone, and are committed to taking prudent steps, stemming from our understanding of the risk factors that our organization and our clients are exposed to. Our diligence in managing these factors mitigates risks.
Client Impact: We are results-oriented and strive to make a difference. We create sustainable impact with our work in our industry and communities while delivering on our sustainability commitments.
Professionalism: We adhere to widely accepted, proven international standards in our work. We deal with our customers, colleagues, and all stakeholders in the utmost professional manner.

Question 4

4. What are Boursa Kuwait’s strategic objectives?

Accepted Answer

Boursa Kuwait’s corporate strategy seeks to develop a more transparent and solvent capital market through the implementation of a group of enhancements and regulatory projects as well as the technology to raise the capital market’s profile locally, regionally, and around the world, in line with the “New Kuwait 2035” state development plan.

With that fresh outlook came the need for a multi-pronged, well-crafted strategy, which not only addresses the needs of the Kuwaiti capital market but includes the perspectives and opinions of every market participant. Research showed the main challenges facing the Kuwaiti capital market, and four main pillars were put in place to address these challenges, represented in infrastructure, liquidity, transparency, and products, each of which was addressed through a series of solutions.

The company has implemented many steps to keep pace with international practices and standards, forging ahead towards a bright future in which Kuwait is a regional and global investment destination and putting in place a multi-pillared plan to achieve its mission and vision, by increasing the issuer base through the adoption of best-in-class international practices and standards, as well as launching campaigns and creating new investment opportunities by sponsoring conferences and putting on roadshows and corporate days all over the world; creating an attractive issuer base through market segmentation and new listing rules to help increase liquidity and attracted companies to list on the stock exchange as well as creating alternative investment opportunities such as the Over the Counter (OTC) platform; developing an improved infrastructure and world-class working environment by implementing new listing procedures and streamlining the relationship with the Capital Markets Authority and other market participants, as well as creating increased transparency by developing the disclosure procedures and making quarterly analyst conferences mandatory for "Premier" Market companies and with the Development of a more comprehensive product line through the implementation and enhancement of products and their regulations, offering investors more opportunities to make a profit.

Question 5

5. Will this transformation bring new products?

Accepted Answer

As part of the company’s strategy and objectives, Boursa Kuwait continually rolls out new products and services to enhance and develop the Kuwaiti capital market, in line with international best-in-class practices and addressing the needs of all market participants locally and abroad.

Since the start of the transition phase in April 2016, the company has successfully upgraded the Kuwaiti capital market’s infrastructure and business environment to meet international standards and developed robust processes, policies, and procedures for all its operations. The launch of Market Development plan 1 (MD1) unified the settlement cycle to T+3, increased price limits, and randomized the closing auction, while MD2 segmented the market into three parts – “Premier”, “Main”, and “Auction”. With this step, Boursa Kuwait became the first exchange in the region to implement segmentation, leading to a substantial leap in enhancing the conditions of the market and increasing liquidity.

The new market segments remedied the lack of liquidity and the unattractive issuer base by providing an attractive investment platform that helps increase the percentage of traded shares in the market. The new basis of segmentation is based on certain criteria related to liquidity, market capitalization, price-to-par ratio, years of operations plus disclosure, and compliance with the terms and conditions of listing.

The Over the Counter platform was also introduced by Boursa Kuwait, giving investors the opportunity to trade unlisted stocks in a highly transparent investment environment.

The first phase of Boursa Kuwait’s Market Development plan 3 (MD3) included the introduction of Real Estate Investment Trusts (REITs), short selling, tender offers, stock swaps, trade at last sessions as well as enhancements on off-market trades, circuit breakers, and the closing auction mechanism.

In the coming months, Boursa Kuwait will roll out several initiatives and products to further enhance the Kuwaiti capital market. These include CCP Cash and CCP Derivatives, margin lending and netting, as well as ETFs, Repo, XBRL among others.

As soon as these and other products are approved by the Capital Markets Authority, we will inform market participants through our many modes of communication, including posting them on our website and our social media channels.

Question 6

6. What is the current status of KSE?

Accepted Answer

As of 5 October 2016, Boursa Kuwait is the owner of the stock market. KSE has transferred its responsibilities to Boursa Kuwait, hence they already cease to exist as a legal entity.

Question 7

7. How did the transition work?

Accepted Answer

The transition entailed an upgrade in KSE’s infrastructure and business environment to international standards, creating a robust, transparent, and fair capital market platform that services all relevant asset classes, whilst focusing on clients’ interests. All stock exchange activities are now under the ownership of Boursa Kuwait.

Question 8

8. Who regulates Boursa Kuwait?

Accepted Answer

The Capital Markets Authority, as the regulatory authority developing and supervising the activities of capital markets in the State of Kuwait, is responsible for the regulation of Boursa Kuwait.

Question 9

9. Is Boursa Kuwait an investment magnet and contributor to the national economy?

Accepted Answer

Boursa Kuwait’s transition aims to develop the capital market into a world-class investment platform focusing on transparency, efficiency, and accessibility. Besides attracting investments, the new entity will play a crucial role in the diversification strategy of the country, and its corporate strategy is in line with the New Kuwait 2035 vision and state development plan to transform Kuwait into a regional financial and cultural hub.

The company underwent a two-pronged privatization process in 2019, becoming the first government entity in Kuwait to become privatized as well as the only private stock exchange in the Middle East. The company has also worked diligently with its partners, The Capital Markets Authority and the Kuwaiti Clearing Company, on upgrading and improving the Kuwaiti capital market, which is classified as an Emerging Market by the world’s leading index providers.

Boursa Kuwait has also contributed to the national economy in its hiring processes, achieving an 80% Kuwaitization rate for the third year in a row in 2019, and has prioritized this initiative through building and maintaining relationships with local universities and participating in career fairs, as well as organizing tours for students to visit and learn about the exchange and the many opportunities available to Kuwaitis at the company

Question 10

10. What is the regional competition and reputation of Kuwait’s capital market?

Accepted Answer

Kuwait’s stock exchange is one of the region’s oldest stock exchanges, with a strong trading reputation that roots back to the 1960s. The country used to boast not only one of the Arab world’s oldest but one of the world’s largest stock markets.

The privatization of Kuwait’s stock exchange was initiated as part of the reforms to galvanize the Kuwaiti economy and overhaul the existing trading infrastructure in line with international best-in-class practices allowing the capital market to flourish and become a pioneer locally, regionally, and around the world.

To that end, Boursa Kuwait and its partners have organized a series of roadshows and corporate days targeting the largest asset management companies in the world which highlighted the investment opportunities and current and future partnerships in Kuwait after being reclassified into an “Emerging Market” by the largest and most renowned index providers in the world.

These roadshows shed light on the infrastructure development efforts as well as the endeavors to conform to international best practices. Boursa Kuwait also informed foreign investors of the latest developments in the company as well as the Kuwaiti capital market, attracting more international investors to the local market.

Question 11

11. When did Boursa Kuwait’s Initial Public Offering (IPO) take place?

Accepted Answer

Boursa Kuwait's shares were offered to Kuwaiti nationals between October 1 and December 1, with an oversubscription rate of 850%.

As a result, Boursa Kuwait has become the only stock exchange operator in the Middle East that is not owned by the state, marking a landmark transaction in the history of Kuwait’s capital markets and an important step towards achieving the ambitious national development goals set out in the New Kuwait 2035 vision and state development plan

Question 12

12. Which exchange are Boursa Kuwait’s shares being traded on?

Accepted Answer

Boursa Kuwait's shares began trading on the “Premier” Market.

Question 13

13. What is the ticker symbol for Boursa Kuwait?

Accepted Answer

Boursa Kuwait’s ticker symbol is BOURSA.

Question 14

14. Can non-Kuwaiti nationals own and trade BK shares?

Accepted Answer

Yes, non-Kuwaiti nationals can own and trade shares in Boursa Kuwait.

Question 15

15. Where can I find the current stock price of Boursa Kuwait?

Accepted Answer

You can find the current stock price of Boursa Kuwait in the Market Watch section on Boursa Kuwait.

Question 16

16. What are the Over-the-Counter (OTC) rules?

Accepted Answer

To learn more about the Over-The-Counter platform, visit the OTC website.

Question 17

17. What is the fiscal year of Boursa Kuwait?

Accepted Answer

Boursa Kuwait’s fiscal year ends on December -31 of every year.

Question 18

18. What is the BK Main 50 Index?

Accepted Answer

The BK Main 50 Index includes the 50 most actively traded stocks in the “Main” Market. The new index aims to highlight opportunities outside the large-cap "Premier" Market space and would also help in addressing investor concerns relating to the liquidity of trades in stocks in the Main Market.

Question 19

19. What is the “Premier” Market?

Accepted Answer

Please refer to: https://www.boursakuwait.com.kw/en/securities/premier-market/premier-market

Question 20

20. What is the “Main” Market?

Accepted Answer

Please refer to: https://www.boursakuwait.com.kw/en/securities/main-market/overview---main-market

Question 21

21. What is an eAGM?

Accepted Answer

An eAGM is a meeting where all participants attend the Annual General Meeting (AGM) remotely, using an online platform that allows attendees to vote, ask questions and participate electronically in real-time, rather than attend the meeting at a physical venue. The platform is provided by the Kuwait Clearing Company and further details can be found at this hyperlink: https://www.maqasa.com/en/eagm-registration/

Question 22

22. When did Boursa Kuwait consolidate the Kuwait Clearing Company as its subsidiary?

Accepted Answer

The consolidation of KCC as a subsidiary commenced in the third quarter of 2020.

Question 23

23. What is the fiscal year of KCC?

Accepted Answer

The KCC’s fiscal year is from 1 January to 31 December.

Question 24

24. Where can I find more information?

Accepted Answer

Investors and market participants can find more information about Boursa Kuwait by visiting the Investor Relations page on the Boursa Kuwait website or by emailing ir@boursakuwait.com.kw.

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