Municipal Council to deliberate on changes to advertising regulations

‘Companies must declare over 5 pc ownership movements’

KUWAIT CITY, March 24: In its upcoming session chaired by Abdullah Al-Mahri, the Municipal Council will address revisions to the new advertising list, reports Al-Jarida daily.

An appendix to the agenda includes the Kuwait Municipality’s proposal to introduce seasonal advertising fees at 5 dinars per square meter per month, raise fees for animated electronic advertisements to 75 dinars per square meter per year, and implement a 5-dinar monthly fee for advertisements on licensed mobile vehicles by the Ministry of Commerce.

Fahd Al-Abduljader, head of the Legal and Financial Committee of the Municipal Council, urged the discussion and voting on the amendments to Ministerial Resolution No. 2023/599 concerning advertising regulations, emphasizing the amendments’ significance and the committee’s inability to convene. He requested the matter be brought before the main session for consideration.

Campaigns

Meanwhile, the Public Relations Department reported that the Audit and Follow-up Department of Municipal Services conducted field campaigns across governorates to verify health and shop advertising licenses and monitor Ramadan-related violations.

In Mubarak Al-Kabeer Governorate’s West Abu Ftaira Al-Herfiyya area, an intensive inspection campaign resulted in 13 violations and 6 warnings, addressing issues like unlicensed advertisements and unauthorized use of spaces.

❑ ❑ ❑ Ownership movements:

Recent movements in ownership exceeding 5 percent of total shares, predominantly held by major government entities and institutions, have marked a departure from previous periods of inactivity, reports Al-Jarida daily.

Traditionally focused on annual cash distributions and bonus shares, institutions like the Kuwait Investment Authority and the Public Institution for Social Security (PIFSS) are now actively adjusting their portfolios.

Among the notable shifts, PIFSS has reduced its holdings in various companies, while the KIA has done the same with others. However, the reasons behind these changes remain undisclosed, prompting questions in the financial market.

In accordance with regulations, companies are obligated to disclose ownership movements exceeding 5 percent. However, the lack of explanations for these changes raises concerns and underscores the need for transparency.

Moreover, institutions transitioning from long-term to short-term investments must announce their shift in strategy. Their significant stakes in listed companies grant them access to critical information and influence over future decisions.

The recent transfer of ownership to local investment firms suggests a dynamic approach to portfolio management. While this flexibility is necessary, clear explanations for ownership adjustments are crucial for market stability and investor confidence.

Overall, government institutions play a pivotal role in the market, instilling confidence among investors and driving companies to enhance performance. Transparency regarding ownership changes is essential to maintain trust and transparency in the financial market.