Capital Markets Authority: Shift to a more sustainable economy poses major financing challenge
The Authority considers adopting ISSB standards and emphasizes the role of markets in financing sustainability
Translated by Qiyas from الراي — Original source
The Capital Markets Authority participated in the expanded awareness workshop organized by the Kuwait Economic Association at its headquarters last Tuesday, with the participation of a select group of local and Gulf experts, as well as representatives of regulatory bodies, listed companies, and an audience of stakeholders interested in sustainability issues, investment worlds, and capital markets.
The workshop emphasized that sustainability is no longer a luxury or an option in our current era, but an absolute necessity for entities, institutions, and societies alike, as well as for economies.
Regarding the Authority’s participation in this event, it was represented by Khaled Al-Saqer, Director of the Awareness, Public Relations, and Communications Office, and Abdulrahman Al-Filikaawi, Director of the Market Regulation Department, who participated as a speaker.
In his opening remarks, Al-Filikaawi noted that the transition toward a more sustainable economy poses a significant financing challenge, making capital markets a pivotal channel for mobilizing capital and directing it toward projects and activities capable of achieving sustainability goals related to the environment, society, and governance.
Al-Filikaawi outlined the Authority’s role in regulating sustainable finance through the regulatory framework adopted by the Authority, which includes requirements for preparing sustainability reports, enhancing governance and risk management related to sustainability, regulating sustainable investment funds, and setting rules for the issuance of bonds, green, social, and sustainable sukuk.
He also discussed the experience of the First Market regarding the first mandatory implementation of sustainability reporting disclosures in 2026, noting that the Authority is currently reviewing the quality of these reports and the extent to which companies comply with the requirements of the executive regulations.
Al-Filikaawi pointed out that initial observations showed that the topics and indicators contained in the reports of approximately 92% of First Market companies align with the indicators of the National Development Plan “Kuwait 2035,” reflecting the role that listed companies can play in supporting the state’s efforts to achieve sustainable development goals.
Furthermore, Al-Filikaawi addressed the Authority’s future direction toward studying the gradual and balanced adoption of the International Sustainability Standards Board (ISSB) standards, taking into account market readiness and investor needs, and enhancing the comparability of disclosures locally and internationally. Participants in the event also highlighted a gap between the requirements for implementing sustainability regulations and the skills required by relevant personnel.
The workshop concluded with recommendations to accelerate academic and professional qualification for human resources involved in implementing sustainability standards, as well as the need to unify sustainable disclosure frameworks in the financial markets of Gulf Cooperation Council (GCC) countries and enhance public-private partnerships in these countries to develop technological infrastructure that supports the green economy and sustainable finance.
