Goldman Sachs Launches Operations in Kuwait

Ibrahim Muhammad: The Capital Markets Authority announced the issuance of the first institutional marketing license for a collective investment scheme established outside Kuwait, on behalf of Goldman Sachs International, which holds a license from the Kuwait Direct Investment Promotion Authority. This move is part of the Authority’s strategic objectives, particularly those related to developing the market system, and aligns with its efforts to provide a suitable regulatory environment for creating and developing investment instruments needed to meet the needs of local and foreign investors across all segments.

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 climate for conducting financial activities locally. The Authority emphasized that granting institutional marketing licenses to global entities such as Goldman Sachs International, under the regulatory framework established by the Authority, represents a key pillar in driving foreign investment, ensuring an integrated business environment, and providing the appropriate conditions and facilitations for both foreign and local investment.

Regarding investment decisions, 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 Kuwait, exclusively to professional clients by nature. These include 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 dinars.

Flexible regulations: The Authority stressed 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 infrastructure, and technical resources, which enable them to conduct prudent self-assessment of investment opportunities. It pointed out that this category of investors generally possesses a higher level of competence in understanding, absorbing, and bearing investment risks compared to qualified professional clients, which necessitates the formulation of flexible regulations that align with their substantial financial capacity and support the attraction of foreign investors.

This decision embodies fruitful and constructive cooperation between the Capital Markets Authority and the Kuwait 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, and to strengthen regional and international competitiveness, while creating an attractive business environment for global institutions.

Marketing of two funds: The Authority confirmed that the approval was issued based on the provisions of Annex No. 4 (“Institutional Marketing of Units of a Collective Investment Scheme Established Outside the State of Kuwait”) of Appendix No. 1 (Marketing of Units of a Collective Investment Scheme Established Outside the State of Kuwait) from Book Thirteen (Collective Investment Schemes) of the Executive Regulations of Law No. 7 of 2010 concerning the establishment of the Capital Markets Authority and the regulation of securities activities, and its amendments. The license covers units of the following two funds:

1. West Street Mezzanine Partners 9 Offshore LP

2. West Street Strategic Solutions 2 Offshore LP