Boursa Kuwait Achieves An Over 190% Increase In Its Profits For 2020

Press release
Published March 1st, 2021 - 12:19 GMT
Boursa Kuwait Achieves An Over 190% Increase In Its Profits For 2020
The Board of Directors has recommended the distribution of a cash dividend of 40 fils
Highlights
Boursa Kuwait announced profits of KD 28 million for the 2020 fiscal year, an increase of over 190% compared to 2019, when the company recorded a profit of KD 9.6 million. 

Boursa Kuwait announced profits of KD 28 million for the 2020 fiscal year, an increase of over 190% compared to 2019, when the company recorded a profit of KD 9.6 million. 

The company’s total assets amounted to about 104.2 million Kuwaiti dinars, an increase of 187.9% compared to the 2019 total of 36.2 million Kuwaiti dinars, while shareholder equity (attributable to the parent company) increased from 32.1 million Kuwaiti dinars in 2019 to 52.8 million Kuwaiti dinars for the year ended December 31, 2020, an increase of more than 64%. 

Operating income increased by 56.3%, from 14.2 million to reach about 22.2 million, while earnings per share amounted to 128.5 fils, an increase of about 169% compared to 2019 when it was 47.8 fils.

In line with the successful performance and commitment to deliver superior returns to shareholders, Boursa Kuwait’s Board of Directors has recommended the distribution of a cash dividend of 40 fils per share for the full year ended December 31, 2020 (subject to approval of the General Assembly and other regulatory entities).

Boursa Kuwait Chairman  Mr. Hamad Meshari Al-Humaidhi commented on the results, saying “We are pleased to have recorded profits of KD 28 million, an increase of over 190% compared to our 2019 total, which are a result of the company’s continuous development and enhancements to the market. Boursa Kuwait has made great progress in our journey to be a prominent stock exchange in the Middle East, and a capital market classified by the most prominent international classification indicators.”

Al-Humaidhi added: “Despite the circumstances surrrounding the COVID-19 pandemic, Boursa Kuwait, one of the government entities to successfully undergo a privatization process, continued its series of achievements and milestones, continuing its strategy to develop the Kuwaiti capital market into one of the best financial markets in the region. I would like to thank the Executive Team and all Boursa Kuwait employees for their valuable contributions towards the advancement of this company.”

In its most prominent achievement this year, Boursa Kuwait self-listed on the Premier Market, an outcome of its unrelenting pursuit of far-reaching reforms and world-class offerings in line with the company’s vision to develop a liquid, reliable and sound capital market providing issuers with efficient access to capital and investors with diverse return opportunities. 

Mr. Mohammed Saud Al-Osaimi, Boursa Kuwait’s Chief Executive Officer commented on the company’s financials, saying: “Boursa Kuwait continues to work on enhancements to its infrastructure and operational model, reaffirming our commitment to improve the market’s efficiency, access and performace in order to attract more local and international investors.”

“The company continued to work on its key pipeline projects for the year, which included the listing of Shamal Azzour Al-Oula Water and Power Company, as well as the listing of the first local real estate investment trust (REIT), BAITAKREIT. Boursa Kuwait also successfully managed the inclusion of seven listed companies into the MSCI Emerging Market Indices, following the reclassification of Kuwait into Emerging Market status at the end of 2019,” he added.

The inclusion accounted for over KD 961.6 million in traded value and representing one of the highest one-day traded values in the history of Kuwait’s capital markets. As a result, foreign ownership within the Premier Market increased by 13%, while foreign trading flows accounted for approximately 24% of traded value in 2020. The total number of securities traded during 2020 was just over 52 billion shares, a 33% jump from around 39 billion shares traded in 2019, as a result of Boursa Kuwait’s effective strategy to develop an attractive investment environment.

Boursa Kuwait is working to develop a strong and efficient financial market with liquidity and transparency, that can effectively put issuers and investors in touch with one other for investment opportunities and high returns on investment to create a developed capital market that is a pioneer in the region.

 

Background Information

Boursa Kuwait

Boursa Kuwait was founded on April 21st, 2014 by the Capital Markets Authority Commissioners’ Council Resolution No. 37/2013 dated 20th November, 2013 and the Capital Markets Authority Law No. 7/2010. In addition to being primarily responsible for regulating all aspects of the Kuwaiti capital market, the Capital Markets Authority also has full ownership of Boursa Kuwait, which manages the exchange operations. Boursa Kuwait is responsible for introducing new trading rules, risk management practices, price discovery mechanisms and new technology to ensure that Boursa Kuwait is as robust and secure as possible. The establishment of Boursa Kuwait marked the first step in privatizing the Kuwaiti Stock Exchange, which was founded in 1983. 

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