Al-Humoud: Three pillars fortified the Kuwait Stock Exchange against geopolitical crises
Strict laws and regulations, real-time monitoring of trades, and the implementation of global governance standards played a pivotal role in preventing panic selling, curbing rumors, and winning investor confidence.
Transparency and integrity form the cornerstone upon which the Kuwait Stock Exchange builds its continuous efforts to win investor trust and attract local and foreign capital. The integrity and transparency applied by the Kuwait Stock Exchange serve as shields and protective arms to safeguard the financial market during exceptional periods and geopolitical disturbances. These policies have directly contributed to improving liquidity levels and providing a fair working environment that protects the interests of all market participants and ensures equal opportunities in accessing core information regarding listed companies. This, in turn, helps consolidate the Kuwait Stock Exchange’s position as a leading and safe investment destination, supporting the state’s comprehensive economic vision and driving sustainable development toward broader horizons.
Financial and economic expert Salem Al-Hamoud emphasized in a special analysis for "Al-Siyasa" that the Kuwait Stock Exchange relied on three main pillars, working continuously to develop them to ensure the application of integrity and transparency for stable financial transactions. The first pillar is the existence of strict laws and regulations imposed by the Capital Markets Authority, aimed at protecting minority rights and preventing price manipulation or the exploitation of insider information that could negatively impact market fairness.
The second pillar lies in the massive technological advancement and modern electronic systems used in trading processes, alongside strict real-time monitoring that tracks any abnormal market movements. The Kuwait Stock Exchange addresses such movements with immediate firmness in accordance with the highest digital security standards. The third pillar concerns the Kuwait Stock Exchange’s full commitment to global governance standards and the precise application of financial disclosure requirements at specific times, enabling all investors to access information simultaneously with the same level of clarity.
He noted that the Kuwait Stock Exchange’s implementation of these main pillars and others has directly placed it among global emerging market indices. This is particularly because it applies many other important aspects, such as the continuous updating of trading rules and the launch of new investment tools that meet market participants’ aspirations. These efforts reinforce concepts of absolute integrity in the daily working environment and attract major investment portfolios.
Al-Hamoud clarified that these continuous efforts championed by the Kuwait Stock Exchange have supported the enhancement of operational integrity. This has led to qualitative leaps and strong indicators reflecting growing confidence in the Kuwaiti market and an unprecedented influx of capital. Traded liquidity levels reached approximately 13.2 billion dinars, driven by a noticeable growth in liquidity during the previous month of August, which alone recorded approximately 1.77 billion dinars.
This financial flow coincided with a clear growth in the base of active accounts in the market, which rose by 16.6 percent to reach approximately 55,569 active accounts. This occurred alongside the market capitalization reaching strong levels that enhance Kuwait’s financial leadership at both the regional and international levels. These developments make the stock exchange an attractive investment environment that supports sustainable economic development plans and opens new horizons for long-term foreign institutional investments.
He stated that the benefits of these prudent policies extend beyond attracting capital during stable periods; they also serve as a safety valve that ensures the resilience of the investment framework during crises. The key advantages of implementing these principles include maintaining the flow of foreign liquidity in the Kuwait Stock Exchange and preventing mass capital flight. Accurate financial reports and immediate disclosures during crises provide full reassurance to international investors and global institutions that the business environment is managed with complete fairness and in accordance with clear international standards, thereby directly reducing panic selling. This helps preserve the stability and balance of circulating liquidity levels in the market without sharp declines.
He noted that the Kuwait Stock Exchange consistently curbs rumors and manages risks with high effectiveness. By providing essential information about listed companies with equal clarity to all market participants simultaneously, it completely blocks the path for fake news and alarming speculation, which typically multiply during wars and armed conflicts. This prevents price manipulation and protects minority shareholders’ rights from being exploited by certain parties through the use of insider information.
