Capital Markets Authority Grants Goldman Sachs Approval to Market Two Funds
The Capital Markets Authority announced the issuance of the first institutional marketing license for a collective investment scheme established outside the State of Kuwait, granted to Goldman Sachs International, which holds a license from the Direct Investment Promotion Authority of the State of Kuwait. This decision reflects the Authority’s vision to enhance the attractiveness of the Kuwaiti market as a destination for international financial institutions and to foster a conducive environment for conducting financial activities locally. The Authority emphasized that granting institutional marketing licenses to global entities such as Goldman Sachs International, in accordance with the regulatory framework established by the Authority, constitutes a fundamental pillar for boosting foreign investment, ensuring an integrated business environment, and providing the appropriate conditions and facilitations for both foreign and local investment.
It is worth noting that “institutional marketing of a collective investment scheme established outside the State of Kuwait” refers to the marketing, offering, arranging, or coordinating of subscriptions in one or more investment funds and other collective investment schemes established outside the State of Kuwait, exclusively to professional clients by nature, such as government entities, persons licensed by nature, investment funds, and other financial institutions subject to the supervision of a regulatory authority, or any company with a paid-up capital of one million Kuwaiti dinars.
In this regard, the Authority reaffirmed that this regulatory direction stems from its belief in the ability of professional clients by nature to make their investment decisions with full independence, given their high financial solvency, integrated institutional structure, and technical resources that enable them to conduct prudent self-assessment of investment opportunities. The Authority pointed out that this category of investors demonstrates a relatively higher capacity to understand, absorb, and bear investment risks compared to qualified professional clients, who are often less experienced. This necessitates the formulation of flexible legislation that aligns with their substantial financial solvency and supports the attraction of foreign investors.
This decision exemplifies the fruitful and constructive cooperation between the Capital Markets Authority and the Direct Investment Promotion Authority, aimed at facilitating the entry of foreign investors and enhancing the efficiency of the local investment environment, in line with Kuwait Vision 2035 to build a diversified economy based on innovation and investment, strengthen regional and international competitiveness, and create an attractive business environment for global institutions.
