MSCI Representatives Meet Boursa Kuwait During Their Local Tour

Press release

Published July 11th, 2018 - 10:20 GMT

Khaled AbdulRazzaq Al Khaled, Boursa Kuwait CEO

Boursa Kuwait management met with MSCI representatives during their visit to Kuwait to engage with several key entities. The meeting took place after MSCI’s recent announcement to include the MSCI Kuwait Index in its 2019 Annual Market Classification Review for a potential reclassification from Frontier Markets to Emerging Markets status.

Organized by Boursa Kuwait, MSCI’s visit aims at discussing the potential reclassification with the Public Institution for Social Security (PIFSS), the Central Bank of Kuwait, Kuwait Investment Authority, Capital Markets Authority and Kuwait Clearing Company.

During the meeting with Boursa Kuwait, MSCI officials Mr. Henry Fernandez, MSCI Chairman and CEO; and Mr. Robert Ansari, MSCI Executive Director-Head of the Middle East met with Mr. Khaled AbdulRazzaq Al Khaled, Boursa Kuwait CEO, to discuss the proposed reclassification, which would be reflected in all relevant global and regional composite indexes.

MSCI’s Chairman and CEO Mr Henry Fernandez commented in Kuwait: “we are pleased to announce the addition of MSCI Kuwait to the watch list for potential reclassification to MSCI Emerging Markets. International institutional investors have continued to share positive feedback with MSCI on the reforms and evolution of the Kuwaiti capital markets framework. Adding MSCI Kuwait to the watchlist sets MSCI on a path to solicit detailed feedback over the course of next year and we look forward to forging strong ties with Kuwait as we share investor feedback on the country’s ambitious program”

Commenting on the visit, Boursa Kuwait CEO Mr. Khaled AbdulRazzaq Al Khaled said: “It was great meeting MSCI representative post the announcement unveiled earlier in June. Meetings were fruitful and we look forward to next steps when MSCI consults market participants on the proposed reclassification of the MSCI Kuwait Index.”

“The inclusion in the watch list shows that we have successfully raised the standards of the Kuwaiti capital market and gained stakeholders’ trust in our rules and regulations. With a progressive legal and regulatory framework governing our market today as well as a solid level of transparency, I am proud to say that we are up to par with some of the most reputable and advanced stock exchanges in the region. We have also continuously improved the local market infrastructure, including the clearing and settlement system, and created a level playing field for international investors.” added Al Khaled.

MSCI will announce its decision in June 2019 for potential implementation with the May 2020 Semi-Annual Index Review. The simulated MSCI Kuwait index would have a potential weight of 0.3% in the MSCI Emerging markets index.

MSCI is one of the world’s top providers of research-driven insights and tools for institutional investors. The reclassification from frontier to emerging markets is a major achievement for any country which typically brings with it large capital inflows from international investors.

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.