Title: Press Release: Launching the Capital Markets Authority's Strategic Plan (2023/2024-2026/2027)

Kuwait, April 2, 2023- The Capital Markets Authority (CMA) launched today its strategic plan 2023/2024-2026/2027, in a press release held at the CMA’s headquarters, with the participation of Prof. Ahmad A. AlMelhem - Chairman of CMA Board of Commissioners and Managing Director, the CMA’s third strategy team, and fellow journalists. The third strategic plan is a continuation of the CMA’s achievements, and through a working team of specialized national cadres led by the Strategies Office, in response to the requirements of the next stage and keeping pace with local and international changes and trends and in line with the state’s directions to contribute effectively to achieving "Kuwait Vision 2035". It is also an implementation of CMA’s roles pursuant with the law of its incorporation and its vision in developing the financial markets sector in the State of Kuwait. The components of the strategic plan are considered as a road map set to strengthen efforts to direct the resources in ensuring the consistency of the organizational units work to transfer the CMA from its current status to the targeted position at the end of the plan.

The capital markets sector is considered one of the main sectors of the economy due to its vital role in investing funds, developing savings, providing financing instruments, diversifying sources of income and creating national job opportunities, all of which contribute to promoting economic development in a sustainable manner. The CMA’s role is directly related to contributing to the vision of the State of Kuwait 2035 and the foundations of transforming the State of Kuwait into a financial and commercial center that attracts investment, as the CMA, through its previous strategy, has endeavoured to establish an attractive investment environment through monitoring and supervising the financial markets, developing the appropriate legislative and regulatory structure in accordance with international best practices, and performing its awareness and educational role to create a safe and attractive environment characterized by fairness and transparency, in order to be a reason for localizing investments, creating opportunities to attract foreign funds and investments, and placing the financial markets sector in the State of Kuwait within the international investment map. As a continuation of the CMA’s achievements and journey, it has developed its strategic plan for the next four years (2023/2024-2026-2027) in response to the requirements of the next phase, keeping pace with local and international changes and trends, and in line with the State’s directions and achieving its vision.

It should be noted that the CMA has worked on preparing its draft strategy according to a new methodology that it had previously developed in the project that it launched in September 2020. It aimed to develop the CMA's strategic planning practices in line with leading international best practices. Through this project, a new framework for strategic planning and management was designed to be a reference in designing and preparing the CMA's future strategies, by conducting interviews with stakeholders who influence the CMA’s strategy, analyzing the documents and practices of the strategic planning cycle, leading to the development of a comprehensive report to diagnose the current situation, including gaps and corrective solutions, and finally the issuance of a guide to the strategic planning methodology developed according to the best practices. This was followed by training courses to familiarize all job levels in the CMA with the new strategic planning methodology and the models and templates used in it, in addition to developing a plan for managing communication and change, and preparing the implementation team to start applying the new methodology. The CMA also worked in parallel at that time to prepare a digital transformation strategy, which it launched in October 2021.

The CMA had launched the work of preparing its third strategy on March 30, 2022 by holding a workshop in the presence of the Managing Director and forming a specialized team led by the Strategic Office and with the participation of various CMA’s sectors in coordination with all parties to implement many of the main tasks and deliverables, within the scope of the work of preparing the CMA’s third strategy. The first stage of the strategic planning methodology (the preparation and analysis stage to prepare the plan). The CMA worked through this stage to conduct environmental surveys from an internal and external analysis that affects the various stakeholders and to study the influences surrounding the CMA’s work in order to determine the desired strategic aspirations for the upcoming period. In order to reach the strategic aspirations targeted by the CMA and draft them clearly and realistically, the environmental scanning operations included polling the opinion of stakeholders related to the CMA’s work internally and externally, who influence its strategy. Those bodies were identified and classified into (4) main categories that include (41) international and local entities, in order to define the practices and standards required to fulfill the CMA’s roles at international and local levels, and to achieve the aspirations and needs of clients. The CMA has communicated with all relevant stakeholders, in order to identify their relevant needs that require the contribution of the CMA and the CMA Academy within the period from 2023 to 2027, with a request for any other observations or proposals to be added in the context of the CMA’s next strategy in the aforementioned period, by publishing a general opinion poll on the CMA’s website on May 29, 2022 with a notification to all those who are registered in the CMA’s electronic portal and listed companies in the main market and brokerage companies. The survey was announced on the CMA’s main page and its accounts on social media. Additionally, it contacted various authorities related to its work, the most important of which are the Ministry of Commerce and Industry, the Central Bank of Kuwait, Boursa Kuwait and Kuwait Clearing Company. It also communicated with other government agencies for this purpose, such as Kuwait Anti-Corruption Authority, the Kuwait Financial Intelligence Unit, the Kuwait Direct Investment Promotion Authority, and the Insurance Regulatory Unit, in addition to local authorities such as the Union of Investment Companies, the Kuwaiti Economic Society, the Financial Analysts Society, Kuwait University, and the Kuwait Chamber of Commerce and Industry. This is to seek their views in this regard, and then receive the responses of various relevant authorities to know their aspirations, visions, needs and areas of cooperation for the upcoming period, and the CMA’s role in achieving those aspirations. It is considered the first stage through which the change in the agenda was defined, and it is the basis in defining the components of the third strategic plan, including vision, mission, values, pillars, strategic goals, initiatives and indicators. After that, the preparation of the implementation plan begins, and later it is detailed in the operational plans.

The second phase (the stage of drafting the strategic plan) was completed to define the strategic priorities, vision, mission and values of the CMA, in addition to defining the pillars of the plan, objectives, indicators and strategic initiatives. This stage is meant to be an introduction to the preparation of the final strategic plan document and the executive plan. This shall be followed by the completion of the third phase’s work of CMA’s strategic planning methodology, which is represented in preparing the executive plan and empowerment plans in coordination with the CMA's sectors and its various organizational units.

It is worth noting that the new strategic planning methodology employs the balanced scorecard for the first time, and it is a tool for measuring strategic performance, in which goals, performance indicators and initiatives are linked at various levels of implementation in a single card, whose components have been adapted to follow up the CMA’s institutional performance, using the range of (beneficiaries, operations, institutional capabilities). This done in a way in which it is possible to measure the extent to which the strategic objectives are achieved at the CMA’ level.

In the process of preparing its strategy, the CMA relied on a set of directives, which represented the main foundations upon which the strategic plan was built, which included the following:

1. The objectives of the CMA stipulated in Law No. 7 of 2010 regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its Executive Bylaws and their amendments.

2. The International Organization of Securities Commissions (IOSCO).

3. The State's development plan (Kuwait Vision 2035).

4. Stakeholders from the relevant international and local parties.

5. Reports of international indicators related to financial markets.

CMA's third strategic plan is based on three main pillars, including a number of strategic objectives, through which efforts are intensified and focused to achieve the objectives of the plan. They are measured by a number of strategic indicators. From Each objective is divided into major initiatives, which I turn has a number of sub-initiatives to achieve the plan’s vision of providing a safe and enabling regulatory environment for the development of capital markets in the State of Kuwait into developed markets that contribute to the national economy. The drawing below shows the components of the CMA’s strategic plan:

The first pillar aims to complete the CMA's pioneering role in developing capital markets with its strategic partners by continuing to develop the market system and developing legislative and regulatory frameworks in line with modern international trends in capital markets, as well as working to stimulate qualitative listings in the securities exchange and encourage institutional investment in order to achieve the desired liquidity rates among the participants in the capital markets. Tthe second pillar aims at continuing efforts to maintain the union of the CMA’s position and manage its network of relations at all levels by actively contributing to strengthening relations at the local, regional and international levels, activating joint agreements and highlighting the CMA’s position locally, regionally and internationally, as well as continuing to raise levels of awareness, investment and legal knowledge, and support for information security for all securities dealers, in addition to spreading the concepts of financial inclusion. With regard to the third pillar, it aims at strengthening the CMA's internal capabilities, adopting best administrative and organizational practices, building the capabilities and competencies of human capital, and engaging modern technologies in aspects of digital transformation and technical empowerment in line with modern trends and the State's directions.

In conclusion, the CMA extends its sincere thanks to all those who contributed and participated from the State’s institutions, whether from the public sector or the private sector, and all CMA employees in the success of its efforts towards developing the capital markets sector in the State of Kuwait. Ambitions do not stop at previous achievements, but we are always looking forward to more progress and success to create a better economic future.

Ends-
Notes to Editors:
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010. Pursuant to the Law, the CMA shall regulate and supervise the securities activities, achieve transparency and fairness, observe listed companies’ execution of Corporate Governance regulations, and protect investors from unfair practices which violate the CMA's Law.
Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs related to securities activities.
For further information, please contact:
Public Relations & Media Office
Tel: 22903062
Fax: 22903505
Email: pr-media@cma.gov.kw

المادة العلمية: استراتيجية هيئة أسواق المال