20% Growth in Foreign Accounts at Kuwait Stock Exchange

Active trading accounts at the Kuwait Stock Exchange recorded a record surge of 44.9 percent by the end of the third quarter of this year, defying the trajectory of geopolitical tensions and challenges that have emerged since February last year.

This record growth in account numbers offers several indications that market regulators should take into account, the most important of which are:

1. A desire to invest and seek opportunities in the financial market, particularly among individuals who maintained their position as the second-largest source of liquidity in the exchange after institutional investors, surpassing portfolios and funds that have significantly declined as influential forces.

3. A marked increase in risk appetite, as the market demonstrated strength and resilience in absorbing shocks and maintaining cohesion during what has been the most severe stress test in recent years—the “war period.” The most positive development was the distribution of half-yearly dividends by 10 companies, achieving a broad base of positive results driven by profit growth.

4. A desire to consolidate local investment and channel surpluses and savings toward selective, long-term investments, following a boom in the emergence of conglomerates and blocs, and a noticeable and tangible cleansing of the market from companies whose practices were exposed. However, this file still requires careful attention to protect small investors not only from corporate misconduct but also from harm caused by delisting or suspension, and to find exit mechanisms that ensure their limited investment funds are not squandered.

5. The most positive aspect of active account growth is the 20 percent surge in foreign accounts held by institutions and individuals, which increased by approximately 525 accounts, rising from 2,620 accounts in September 2025 to 3,145 accounts by the end of last September.

Overall, accounts grew by 3.4 percent, reaching a total of 476,565 accounts, compared with 460,614 accounts. As noted, these accounts represent wealth, as appropriate investment opportunities, subscriptions, and instruments have been made available to various professional and mid-tier segments. This can double the circulating liquidity in the market, which translates into higher commissions for the exchange and brokerage firms.

Additionally, investment opportunities have been made available to licensed companies through the revival of investment instruments, such as forward services and sales, with the number of licensed service providers reaching nearly 18 companies.

Motivating and encouraging investors, and bringing the majority out of inactivity into active participation, is a shared responsibility that begins with building trust by shielding individual investors from a portion of the penalties imposed on companies due to board practices. Then, small shareholders are expected to hold boards of directors accountable, in a reversed dynamic that requires a shareholder owning shares worth 10,000 dinars to pursue boards that control hundreds of millions and, in some cases, deploy legal armies that defy regulatory authorities by refusing to pay disciplinary financial fines. How, then, can a small shareholder hold those companies accountable?