Title: Announcement regarding issuance of Disciplinary Board Resolution No. (29/2025 Disciplinary Board) (62/2024 Authority) and imposition of a fine against: Kuwait Business Town Real Estate Company for violating the rules of Corporate Governance

Announcement regarding issuance of Disciplinary Board Resolution No. (29/2025 Disciplinary Board) (62/2024 Authority) and imposition of a fine against: Kuwait Business Town Real Estate Company for violating the rules of Corporate Governance

For the following reasons:

The Company violated the provision of Item (5) of Article (6-3) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments, it stipulated that:

“The  company  organizational  structure  approved  by  the  Board  of  Directors  shall  have a department/ an office/ an independent unit, which shall primarily measure, monitor, and mitigate all types of risks encountered by the company in accordance with the following:

5. Review transactions to be made by the company with the Related Parties and

provide proper recommendations thereof to the Board of Directors.”.

It was proven to the CMA, through a study of the financial statements of Kuwait Business Town Real Estate Company for the financial year ending 31/12/2024, specifically item “Financial investments at fair value through profit and loss”, that the company did not take a recommendation from the risk management department when concluding a deal to sell bonds issued by a bank with a related party (company) in the amount of KWD 2,166,443 (two million, one hundred and sixty-six thousand, four hundred and forty-three Kuwaiti Dinars only).

The Resolution included the infliction of the following penalty: -

"Levying a fine against Kuwait Business Town Real Estate Company in an amount of KWD 10,000 (ten thousand Dinars) for the attributed violation.”

In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these Laws in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice.