Title: Joint Press Release: Memorandum of Understanding Regarding Coordination of Cooperation between the Ministry of Commerce and Industry and the Capital Markets Authority

Kuwait, February 18, 2024 – The Ministry of Commerce and Industry signed today a memorandum of understanding with the Capital Markets Authority regarding coordination of cooperation, in the presence of His Excellency Mr. Abdullah Hamad Al-Jouan – Minister of Commerce and Industry and Prof. Ahmad Al-Melhem – Chairman of CMA Board of Commissioners and Managing Director. The Ministry was represented by Mr. Ziad Abdullah Al-Najem – Undersecretary of the Ministry of Commerce and Industry, while the CMA was represented by Mr. Zeyad Al-Fulaij – Head of Supervision Sector at the CMA.

The CMA is responsible for the supervision of securities activities in terms of regulation, licensing, and activity, and of all participants in this field, including companies, pursuant to Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its Executive Bylaws and amendments thereto. The Ministry of Commerce and Industry is responsible for the supervision of companies operating in the State of Kuwait in term of establishment, registration, regulation, and licensing pursuant to Law No. 1 of 2016 on the Promulgation of the Companies Law and its Executive Bylaws. This includes licensed companies, listed and unlisted companies, from their establishment to the holding of their general assemblies, liquidation, auditors registered with the CMA, and Sharia audit offices registered with the CMA.

In the context of the pursuit of both the Ministry and the CMA to update all memoranda of understanding and agreements with other entities in the country in order to achieve balance and integration in work mechanisms and procedures, and to ensure the completion of work in the best and fastest possible manner required by the commercial activities, while ensuring clarity, transparency, and reducing procedural burdens on employees and clients of government entities in the State of Kuwait; this new MoU comes to update the frameworks of cooperation between the Ministry and the CMA in light of the issuance of several resolutions amending the Executive Bylaws of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, the amendments of Law No. 1 of 2016 on the Promulgation of the Companies Law, and the relevant ministerial resolutions. The new MoU replaces the previous MoUs signed on 21/11/2017 and 15/12/2014.

The MoU included several amendments, the most prominent of which are the provision of reviewing the MoU every three years which ensures the periodic update in accordance with the requirements of each entity and upgrade the level of achieving work efficiently, in addition to listing an item regarding the mechanism of the electronic exchange of necessary data and information between the two entities which may result in the speed of information exchange and facility of making a decision with regard to violations, penalties, and sanctions of the work of each entity. This will also enable the CMA to benefit from the data of the Commercial Register at the Ministry through the electronic link between the two entities in order to grant the CMA with the authority to access in accordance with the approved controls and procedures.

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Notes to Editors:
The Capital Markets Authority (CMA) of Kuwait was established pursuant to Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, and its amendments, approved by the Kuwaiti Parliament in February 2010. Under this Law, the CMA regulates and supervises securities activities, ensures transparency, fairness, efficiency, and observes listed companies’ implementation of Corporate Governance regulations. The CMA also protects investors from unfair practices and violations of 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