Al-Eqtisadiah: Sustainability Becomes a Pillar of the Economy

The president of the Kuwait Economic Association, Abdulaziz Al-Humaidi, affirmed that sustainability is no longer an option but has become an economic reality that must be addressed, predicting that it will form an essential part of the Kuwaiti and global economies in the coming period.

Speaking to the Kuwait News Agency (KUNA) on the sidelines of a workshop organized by the association on Tuesday titled “Integrating Sustainability into Economic Systems,” Al-Humaidi stated that the event aims to raise awareness among investors and economists regarding the importance of sustainability and the mechanisms for implementing it in companies, while leveraging Gulf experiences in this field. He added that the association has enlisted economic experts from the Sultanate of Oman and the Kingdom of Bahrain to transfer successful experiences and practices to Kuwait, thereby contributing to strengthening economic sustainability locally.

The workshop included three sessions covering the regulatory role and pioneering experiences, the financial landscape and risk management, and the role of banks and insurance companies, as well as environmental impact and economic value.

For his part, Kuwait Economic Association Treasurer Mohammed Al-Rashid said the association is keen to attract specialized expertise to discuss important economic issues, foremost among them sustainability, and ways to transform its requirements from costs into opportunities that yield economic returns. Al-Rashid clarified that the workshop saw the participation of experts from Bahrain and Oman, alongside young Kuwaiti cadres, with the aim of exchanging experiences and discussing sustainability applications in capital markets, banking, insurance, and industrial sectors, as well as legislative aspects and requirements for listed companies.

For his part, Muscat Stock Exchange CEO Haitham Al-Salimi affirmed that financial sustainability and governance have become essential elements in corporate reports, as they provide data that help measure environmental and social impact, evaluate governance practices, and mitigate operational risks.

Al-Salimi, in a statement to KUNA, explained that adherence to sustainability standards reflects on companies’ financial performance and valuations, enabling them to benefit from incentives and various financing options, thereby serving shareholders’ interests and enhancing the value of their investments.

He noted that Gulf capital markets faced challenges in the recent period that tested their ability to continue operations, adding that coordination among Gulf Cooperation Council (GCC) countries helped provide logistical alternatives to ensure the continuity of economic activities. He added that the impact of these challenges varied across sectors; while certain activities were affected, other sectors compensated for part of that impact. He clarified that market performance is linked to supply and demand factors, as well as corporate results and profits.

Al-Salimi revealed that profits of companies listed on the Muscat Stock Exchange rose by 12% during the first half of this year compared to the same period last year, emphasizing the importance of maintaining liquidity levels in Gulf capital markets and their role in supporting long-term recovery opportunities.

For his part, Professor of Accounting and Finance at the International University Dr. Badr Al-Shalal affirmed that integrating sustainability into economic systems and applying governance standards require the convergence of financial and economic efforts, along with monitoring and auditing by specialists, thereby supporting economic reforms and achieving diverse sustainability, especially in light of current regional conditions.

Al-Shalal highlighted the importance of preparing reports, tracking observations, and highlighting sustainability requirements, commending the Kuwait Economic Association’s initiative to organize the workshop to discuss this file.