Title: Press Press Release: The Capital Markets Authority Announces Mandatory Implementation of the XBRL Electronic Disclosure System Commencing January 5, 2025

Kuwait, January 4, 2025 – As part of its continuous efforts to improve and enhance the financial market in Kuwait, the Capital Markets Authority (CMA) announces launching the Mandatory Application Phase of the XBRL Electronic Disclosure System “Ifsah 2 Disclosure System” commencing on Sunday, January 05, 2025. This comes as part of the comprehensive strategy adopted by the CMA to promote the standards of transparency and disclosure in the capital market of the State of Kuwait, in addition to improving the effectiveness of transactions related to securities activities.

The XBRL Electronic Disclosure System is a modern platform that aims to provide an advanced technical infrastructure for managing financial and non-financial disclosures through the system in accordance with the best international practices. This system will contribute to enhancing the accuracy and reliability of the data provided, while facilitating the interaction process between related parties.

New Phase and Scope of Application

The CMA emphasizes that all entities subject to its supervision shall use the new system as of Sunday, January 05, 2025. The use of all traditional disclosure methods for submitting financial and non-financial disclosures will be discontinued, such as the general registry and e-mails. Henceforth, the XBRL Electronic Disclosure System “Ifsah 2 Disclosure System” will be the sole method for submitting disclosures and reports.

Regarding the submission of disclosures and information to Boursa Kuwait Securities Exchange, Boursa Kuwait Securities Exchange will launch a new sub-site dedicated to XBRL Electronic Disclosure System on January 5, 2025, through a special link on its current website, which will be maintained and continue to operate until March 31, 2025. Companies and disclosing parties will be required to continue submitting their disclosures and reports to the securities exchange via the “CIP” system until that date. This step aims to ensure smooth transitional period that enables companies and stakeholders to adapt to the new system, and to provide an opportunity for all dealers and the public to learn about the new changes to Boursa Kuwait’s website as a result of its update in accordance with XBRL Electronic Disclosure System.

In a related matter, the CMA notes that the disclosures submitted to the CMA through XBRL Electronic Disclosure System “Ifsah 2 Disclosure System” will become the primary source of disclosures and information that will be published on Boursa Kuwait Securities Exchange’s website.

Scope of Application and Major Domains

The scope of application of this system includes numerous parties, licensed persons, listed companies, auditors, collective investment schemes, other regulatory authorities, Boursa Kuwait Securities Company, and all traders dealing in the capital market of the State of Kuwait. The disclosure information and requirements specified in the system are included in its four domains as follows:

• Financials Reporting Domain: This relates to periodic financial disclosures.
• Capital Adequacy Reporting Domain: This domain is dedicated for Capital Adequacy reports.
• General Assembly Reporting Domain: This is concerned with General Assemblies disclosures.
• Disclosures Reporting Domain: This domain relates to other market-related disclosures.

Preparations for the Mandatory Application Phase – “Pilot Phase”

The CMA launched a pilot phase for its new system on July 14, 2024, which continued until the present date. This was to provide an opportunity to qualify all system users and raise awareness of the advantages and mechanism of the components of the electronic disclosure system. This phase included providing full technical support to all target groups, in addition to conducting thorough tests to ensure stability of the system's operational processes.

The CMA held a series of awareness workshops for all parties concerned with the system to enable them to deal with it smoothly and ensure their readiness for full application. Moreover, companies were given the opportunity to test the system in parallel with the use traditional methods to ensure the smooth transition and avoid any potential challenges.

The CMA commends the efforts and cooperation of all companies and parties concerned with the scope of implementing this system, as their cooperation and interaction during this phase had a significant impact on the completion and success of this project, in addition to their effective participation by submitting their various disclosures through the system. It is worth noting that the registration rate in the system during this phase reached about 99% of the category concerned with using the system.

The Significance of the Project and its Impact

This step is considered one of the most important strategic initiatives adopted by the CMA, as the new system represents a fundamental pillar in developing the infrastructure of the Kuwaiti capital market. This comes within the framework of efforts aimed at enhancing the reliability and efficiency of the market in addition to improving the local investment conditions.

It is expected that the system will contribute to improving the disclosure process and facilitating the exchange of data between various parties, whether listed companies, regulatory authorities or individuals, which enhances the efficiency of the market and raises its level of competitiveness at the regional and international levels.

Enhancing Awareness and Readiness

As part of the CMA’s plan to ensure that all stakeholders are aware of the system, a special awareness section has been designated on the CMA’s website “Electronic Disclosure System”, which includes all the guidance manuals, explanatory materials and recorded videos that explain the system’s features and working mechanisms.

This project confirms the CMA’s keenness to achieve its mission of developing the financial market in the State of Kuwait and enhancing the principles of disclosure and transparency in line with Kuwait’s development vision.

XBRL language and the Core of Electronic Transparency

The new electronic disclosure system is based on XBRL language (Extensible Business Reporting Language), which is a standard, digital, and flexible language (extensible) specifically developed to support disclosure and exchange of information between the entities and parties of the economic activity and the various users of data and information (financial and non-financial). The “standard” nature of this language is due to the global agreement on its concepts and terminology within the international XBRL organization, which is an international non-profit organization concerned with setting standards in XBRL language and preparing and issuing the classifications and determinants of this language and developing them for the purpose of improving the disclosure process in the financial markets.

Conclusion

The application of the XBRL Electronic Disclosure System is a pioneering step towards achieving CMA’s aspirations, as unprecedented in the work mechanism of capital markets, CMA will continue to provide the required support for all entities concerned to ensure the success of the new phase.

For more details, please visit the CMA’s website.

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: 1888898
Email: pr-media@cma.gov.kw