International indices affirm businesses in Kuwait have turned easier
KUWAIT: Kuwait’s Capital Markets Authority (CMA) is undertaking modifications to facilitate entry of foreign investors into the Kuwaiti market and overhaul the national business-financial environment. The CMA said in a statement yesterday that it had issued decision 135/2018 for amending some provisions on the first book, ‘Definitions,’ and the 16th book on combating money laundering and funding terrorism, stipulated in the executive by-law of the law 7/2010, with respect of establishing the authority and regulating financial securities. The amendments are part of the ongoing renovation and reform scheme to regulate stock transactions, it said, also noting that it coordinated with Kuwait Clearing Company in this regard.
The move is crucial for overhauling the stock market system, it has stressed. The CMA board of commissioners approved, during a meeting on October 31, some modifications of the third chapter, he said, noting that some of the changes stipulated that the duration for companies seeking to be enlisted would be five days, instead of instantly. The reforms have been helpful in promoting Kuwait’s classification as an emerging market by the FTSE, in addition to advancing its ranking in terms of protecting minority investors from 81 to 72, according to the World Bank (WB).
Meanwhile, the Ministry of Commerce and Industry said that the World Bank had affirmed practicing businesses in Kuwait has noticeably become much easier according the ‘TDF’ economic index last year. The ministry said in a statement that Minister Khaled Al-Roudhan had lauded the WB efforts and cooperation with the ministry on regular basis, adding that he had also affirmed efforts for improving Kuwait economic status, as portrayed by international indexes.
Minister Roudhan has also praised the permanent committee for improving the business environment, thus elevating Kuwait’s ranking by the international indices. The WB business report noted that Kuwait conducted basic changes that elevated its ranking by 16 points, from 149 to 133, with respect of commercial startups. TDF index showed improvement of easy business in Kuwait, last year, from 61.4 to 62.2.
In other news, Kuwait’s State Audit Bureau (SAB) announced achieving financial savings for public funds at the value of KD 249 million (around $820 million due) to supervisory activities it fulfilled in cooperation and coordination with responsible bodies for the fiscal year 2017-2018. SAB’s Director of the Department of Economic and Regulatory Control Fatma Al-Busairi said in press statement that tight supervision in the fiscal year 2017-2018 increased the saved fund by KD 60 million (around $197 million) compared to fiscal year 2016-2017, when the saved money reached KD 234 million ($770 million).
The tight supervision control is divided into financial and non-financial, and is resulted from SAB supervisory task, she said. The financial control is reflected in achieving measureable public benefit like decreasing expenses or increasing income, while non-financial control is represented by achieving a non-measureable public benefit and supported with proofs like improving the performance of the work institution, she added.
The financial control has saved funds valued at around KD 294 million ($968 million), distributed to the bodies included in SAB’s supervisory activities, as the governmental ministries and administrations’ share standing at 70 percent, and the independent entities 18 percent, she said. That of companies of annexed budgets was at 10 percent, while that of bodies of attached budgets stood at two percent, she said. The financial control gained from subsequent control reached KD 277 million ($912 million), 94 percent of the total value, while the non-financial control gained from the pre-censorship KD 17 million ($55 million) which makes only six percent of the total value, she said.
The financial control of the governmental sector reached KD 264 million (around $869 million), which reached KD 30 million ($98 million), while the non-financial control effects of the governmental sector reached 123, and 15 to companies sector, she added. Meanwhile, the non-financial control represented in non-measurable public benefit reached 138 effects distributed to various bodies, ranging from 43 percent to bodies of independent budget, and 11 percent to companies, she affirmed. – KUNA