Economic Association Organizes Workshop on 'Integrating Sustainability into Economic Systems'

The Kuwait Economic Association organized a workshop on Tuesday titled “Integrating Sustainability into Economic Systems” to highlight mechanisms for transforming sustainability concepts, governance practices, and environmental and social responsibility into concrete executive decisions and tangible economic and operational value. The event was attended by a number of investors and economic experts.

In a statement to the Kuwait News Agency (KUNA), Association President Abdulaziz Al-Humaidi said the workshop aimed to raise awareness among investors and economists about the importance of economic sustainability. He noted that sustainability is no longer an option but a reality that must be addressed and will become an integral part of both the Kuwaiti and global economies in the coming phase.

Al-Humaidi added that the role of the Kuwait Economic Association is to educate economists and investors on the concept of economic sustainability and the mechanisms for its implementation in companies. He pointed to the involvement of economic experts from Gulf countries, specifically the Sultanate of Oman and the Kingdom of Bahrain, to benefit from their experiences in this field and transfer them to Kuwait, thereby contributing to the application of best practices and enhancing economic sustainability locally.

He clarified that the workshop comprises three sessions: the first, titled “The Regulatory Role and Leading Experiences”; the second, “The Financial Reality, Risk Management, and the Role of Banks and Insurance Companies”; and the third, “The Environmental Impact and Economic Value.”

For his part, Association Treasurer Mohammed Al-Rashid told KUNA that the Kuwait Economic Association strives to attract specialized economic expertise to discuss important issues, foremost among them sustainability, which has become a fundamental pillar of the economy and a means of transforming costs into opportunities that yield economic returns.

Al-Rashid added that the event includes three sessions featuring experts from the Kingdom of Bahrain and the Sultanate of Oman, alongside young Kuwaiti professionals, with the aim of exchanging experiences and discussing mechanisms for implementing sustainability across various economic sectors. He emphasized the Association’s commitment to diversifying the session topics to cover capital markets, insurance, banking, and the industrial sector, as well as regulatory aspects and requirements for listed companies, thereby contributing to simplifying sustainability concepts and conveying them clearly and practically.

On his part, Muscat Stock Exchange CEO Haitham Al-Salimi told KUNA on the sidelines of his participation in the workshop that financial sustainability has become an important and attractive focus, stemming from human responsibility toward society and the environment, as well as governance within the framework of society and the companies it interacts with. This has made it a fundamental component of corporate reports.

Al-Salimi explained that financial sustainability provides data on a company’s role in triple governance, helping to measure impact by reducing risks. He noted that adherence to these standards contributes to mitigating corporate and operational risks.

He clarified that compliance with sustainability standards reflects positively on corporate financial performance and valuation, and allows companies to benefit from incentives available through various financing options. He affirmed that these financial effects ultimately serve shareholder wealth.

Al-Salimi pointed out that Gulf capital markets faced a test of their strength in recent times, as companies continued their operations normally despite challenges that also created new opportunities. He noted that coordination among Gulf countries helped provide alternative logistical mechanisms to ensure business continuity.

He mentioned that certain sectors were affected by these challenges, while other sectors compensated for this impact, adding that the effect on Gulf markets was linked to the strength of supply and demand.

He added that corporate performance and profits represent the most important aspect when evaluating markets, as stock market rises or declines are always linked to supply and demand forces. He noted that profits of companies listed on the Muscat Stock Exchange rose by 12 percent during the first half of this year compared with the same period last year. Al-Salimi emphasized that prospects for recovery and a return remain strong, given that Gulf capital markets have maintained their liquidity levels, stressing that preserving liquidity has a significant long-term impact.

For his part, Dr. Badr Al-Shalal, a professor of accounting and finance at the International University, told KUNA on the sidelines of his participation in the workshop that integrating sustainability into economic systems and its relationship with them, as well as the entry of governance and the application of its standards and regulations, require coordinated financial and economic efforts, along with follow-up and scrutiny by specialists to implement economic reforms and achieve diverse sustainability, especially in light of current regional conditions.

Dr. Al-Shalal expressed his gratitude to the Economic Association for organizing the workshop and selecting this theme, highlighting the importance of preparing reports, monitoring observations, and drawing attention to the significance of sustainability at this time. (End) M.A. / M.K.