CMA to issue sukuk, bonds for first time

KUWAIT: Executive Director of the Capital Market Authority (CMA) Nayef Al-Hajraf revealed yesterday plans by the new CMA executive committee to issue Islamic bonds known as sukuk for the private sector. In an interview with pan-Arab television news channel Al-Arabiya, Hajraf said that work is underway on forming a specialized market to issue sukuk, the latest move in CMA’s efforts to foster Islamic finance in the country.

Moreover, Hajraf lauded the new CMA executive committee, labeling it superior to its predecessors in addressing shortcomings that plagued the old system. He also noted that the new committee is better equipped at adapting to the latest breakthroughs in finance as well as being more farsighted in developing the financial market.

Hajraf also disclosed that the new committee is exerting efforts to encourage foreign investment. Hajraf also spoke of the CMA’s better capabilities of liquidizing shares, which would in turn bolster investment. Hajraf also revealed that the entire financial system is being revamped with the new changes to go into effect before the end of the year.

Established according to law no. 7/2010 and subsequently passed by the parliament in 2010, the CMA works on developing the activities of capital markets in Kuwait. The CMA has bolstered efforts of incorporating principles of Islamic finance, a system in which capital is raised in accordance to sharia, or Islamic law. — KUNA