CmaBoardReleases
Title: Stability of Securities Activity Indices in the Global Competitiveness Index 2018
KUWAIT CITY, October 20, 2018 - According to the recent report issued by the World Economic Forum entitled "Global Competitiveness Index 2018", which indicates a relative improvement in Kuwait's competitive ranking and an increase of two positions over the past year, that improvement is naturally due to the enhancement of Kuwait’s rank of more than half of the indices on one hand and the economic stability of Kuwait on the other.
The Kuwaiti economy's competitiveness over the past year has been reinforced by several factors, some of which relate to securities activities. Three indices out of the possible 90 listed on the report have been identified to have a direct relationship to capital markets.
The first two are the "Conflict of Interest Regulation" and "Shareholder Governance" indices, the former of which maintained its balance of (57.0) (in the scale of the best performance) and the latter retained its prior balance of (53.0) according to the same scale.
Within this framework, several recent actions had a direct impact on the aforementioned indices, namely, the "Conflict of Interest Regulation" index aimed at protecting shareholders from the misuse of the corporate assets for personal gain, as well as the protection of shareholders rights which is primarily aimed at the protection of minority rights through Resolution No. (57) of 2018 which amended several Modules in the Executive Bylaws of the CMA Law 7 of 2010, specifically: Module 10 (Disclosure and Transparency), Module Eleven (Dealing in Securities), Module Twelve (listing rules), and Module Fifteen (Corporate Governance). These amendments are expected to reflect positively on these indices in future as these changes are implemented in line with critical trends related to the development of the market. In the framework of an integrated project of the Capital Markets Authority to develop the entire structure of financial markets, in partnership with some concerned bodies, the Authority has made good progress in the framework of this project, which includes significant changes in the various legislative and regulatory aspects of the tasks related to securities activities This project, in addition to reaching the final stage of privatization of the exchange, has had the most significant impact in achieving the exceptional successes achieved in the past period, such as raising the local stock market to emerging markets and placing Kuwait on the list of promotion to the MSCI Emerging Markets category.
As for the third index know as market capitalization, which experienced a slight decline according to the latest valuation, the Capital Markets Authority assigned a specialized team to evaluate the aforementioned index based on the data available from Bloomberg and based on its assessment of the mechanisms described in the Global Competitiveness Index's technical information records, we noted from the table below that the index recorded a slight increase and relative improvement during the years 2014-2016 compared to the period preceding.
Year |
Market cap Billions USD |
GDP Billions USD |
Mcap/GDP |
2010 |
119.02 |
115.40 |
1.03 |
2011 |
96.90 |
154.03 |
0.63 |
2012 |
97.18 |
174.07 |
0.56 |
2013 |
102.85 |
174.00 |
0.59 |
2014 |
93.17 |
162.00 |
0.58 |
2015 |
80.90 |
114.00 |
0.71 |
2016 |
78.78 |
110.00 |
0.72 |
Note: The mechanism adopted by the international organization requires the adoption of an average rate of evaluation for the three consecutive years, the latest of which is 2016, which explains the discontinuation of the table data for this year, which is required to be noted.
It should be noted that the Global Competitiveness Report issued annually by the World Economic Forum and is considered one of the most important indices of global capacity, especially as it measures the competitiveness of 140 countries, and includes dozens of indices related to different sectors in each.
We use cookies to ensure you get the best experience on our website.