CMA to is­sue sukuk, bonds for first time

Kuwait Times - - FRONT PAGE -

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

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