Sustainability... a pillar for financial policies

- Al-Humaidi: Sustainability will be an essential part of the Kuwaiti and global economies in the coming phase

- Al-Rashid: Discussing ways to transform sustainability from a cost into opportunities that yield economic returns

- Al-Salimi: Adherence to sustainability standards reflects positively on corporate financial performance and boosts company valuations

The President of the Economic Association, Abdulaziz Al-Humaidi, affirmed that “sustainability is no longer merely an option or a slogan; it has become a fundamental pillar for reshaping fiscal and investment policies, and for building robust economic models capable of resilience and achieving comprehensive development for future generations.”

This statement was made during the activities of a workshop organized by the Association on Tuesday, titled “Integrating Sustainability into Economic Systems,” aimed at highlighting mechanisms to transform 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 press statement, Al-Humaidi noted that the workshop was designed to raise awareness among investors and economists regarding the importance of economic sustainability. He emphasized that sustainability is no longer an optional choice but a reality that must be addressed, and it will become an integral part of both the Kuwaiti and global economies in the near future.

Al-Humaidi added that the role of the Economic Association lies in educating economists and investors about the concept of economic sustainability and the mechanisms for its implementation in companies. He pointed to the utilization of economic expertise 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.

For his part, the Treasurer of the Association, Mohammed Al-Rashid, confirmed that the Economic Association strives to attract specialized economic expertise to discuss key issues, with sustainability being a primary focus. He described sustainability as a fundamental pillar of the economy and highlighted the need to transform it from a cost into opportunities that generate economic returns.

Al-Rashid added that the event comprises 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 include capital markets, insurance, banking, and the industrial sector, as well as legislative aspects and requirements for listed companies. This approach aims to simplify sustainability concepts and convey them clearly and practically.

For his part, the Chief Executive Officer of the Muscat Stock Exchange, Haitham Al-Salimi, stated on the sidelines of his participation in the workshop that “financial sustainability has become a crucial and attractive focal point, stemming from human responsibility toward society and the environment, as well as governance within the context of society and the companies it engages with, making it a key component in corporate reports.”

Al-Salimi added that “financial sustainability provides data on a company’s role in triple governance, helping to measure impact in terms of risk reduction. Adherence to these standards contributes to mitigating corporate and operational risks.” He clarified that “adherence to sustainability standards positively impacts corporate financial performance and enhances valuations, while allowing companies to benefit from incentives available through various financing options.” He confirmed that these financial effects ultimately serve to benefit shareholder wealth.

He noted that “Gulf stock markets have faced a test of their resilience in recent months, as companies continued their operations normally despite the challenges, which also created new opportunities,” adding that “coordination among Gulf states helped provide alternative logistical mechanisms to ensure the continuity of business.” He stated that “certain sectors were affected by these challenges, while other sectors offset this impact,” pointing out that the effect on Gulf markets was linked to the dynamics of supply and demand.

Al-Salimi highlighted that the prospects for recovery and a return to normalcy remain strong, given that Gulf stock markets have maintained their liquidity levels, emphasizing that preserving liquidity has a significant long-term impact.

The Chief Executive Officer of the Muscat Stock Exchange, Haitham Al-Salimi, stated that corporate performance and profits are the most important factors when evaluating markets, noting that stock market rises or declines are always tied to supply and demand forces. He explained that corporate profits on the Muscat Stock Exchange rose by 12 percent during the first half of this year, compared to the same period last year.