Title: Press release: The Capital Markets Authority Receives a Delegation from the Islamic Development Bank

Kuwait - March 7, 2023 - Prof. Ahmad Al-Melhem - Chairman of CMA Board of Commissioners and the Managing Director, received a delegation from the Islamic Development Bank, on Tuesday March 7, 2023 at CMA’s headquarter, represented by:

- Mr. Yahya Alim Al-Rahman - A global leader in Islamic financial advisory services

- Dr. Abu Dhar Mohammed - Senior Islamic Financial Specialist

- Mr. Abdullah Mohammed - Senior Islamic Financial Specialist

This two-day visit comes in response to the CMA’s request for technical assistance in the Islamic financial industry, and with the support of both their Excellency the Minister of Commerce and Industry and the Minister of Communications and Information Technology Affairs, as both are representatives of the State of Kuwait in the Islamic Development Bank, in order to achieve the CMA's initiative within its approved strategy to develop the Islamic financial industry in the capital markets in the State of Kuwait, in line with the CMA's objectives in developing financial markets and diversifying its investment instruments.

The CMA has noticed interest in the Islamic financial industry in the financial sector in the State of Kuwait, which appears in several aspects, most notably the percentage of listed companies on Boursa Kuwait Securities Exchange (in terms of market value) that are compatible with Islamic Sharia, and constitute 60% of the listed companies. Islamic finance is universally accepted for its role in sustainable economic development, its association with real assets and its participation in profits and losses. Financial markets that are compatible with Islamic law are an important opportunity for many countries seeking to develop their economy, due to the markets’ positive impact on the future of the financial sector and increasing the growth of the gross domestic product and the national economy.

This invitation is the result of the Islamic Development Bank’s experience in this field through its advisory services that it provides through the Islamic Development Bank Institute, which includes developing the Islamic financing systems, and the Institute specialization in providing technical and advisory assistance in Islamic finance by assisting in the development of legal, regulatory and supervisory frameworks. Additionally, the bank is a non-profit institution and seeks to be a pioneer in its field, which is consistent with the objectives of the CMA in the same context. Moreover, the State of Kuwait is one of the founding countries of the Islamic Bank and has signed a strategic partnership document with the Bank in 2013 for the purpose of cooperation in the fields of achieving development.

During the visit, the CMA agreed with the Bank's representatives on a plan to conduct a study that includes a review of the standards and publications of the relevant international organizations within the scope of this study, and performing a benchmarking process with best practices and successful international applications in order to document lessons learned and implementation challenges, while developing a road map and proposing the best ways of developing the Islamic capital market in the State of Kuwait.