Boursa Kuwait privatization a historic event
NIC, Razan Financing and Investment Company, First Investment Company and Bursa Athena win bid
KUWAIT: The privatization of Boursa Kuwait was yesterday hailed as a historic event. Finance Minister Nayef Al-Hajraf said that this successful privatization came after many professional steps taken by the Capital Markets Authority since 2010. “It’s very impressive that the team working on this project is a professional technical team that worked hard, and the project wasn’t affected by the changing of directors or even ministers. This is the real challenge,” he noted during a press conference held yesterday.
Minister of Commerce and Industry Khaled AlRoudhan stressed that privatizing the bourse is a means to reach more achievements. “The stock market is a reflection of the economic situation. Many people thought that privatizing the bourse is a dream, but it came true and was realized. We believe in the role of the private sector,” he affirmed. The public subscription of shares will take place within a year and will be free of charge.
“It represents the great success of the privatization process of public projects in Kuwait. It’s related to one of the most important economic institutions (Kuwait Stock Exchange),” said CEO of Capital Markets Authority Ahmad Al-Melhem. Thursday saw the preconclusion phase of privatizing Boursa Kuwait by announcing the winners of the public bidding, held according to international standards. “The winner of the bid for 44 percent of Boursa Kuwait was the alliance of National Investments Company, Razan Financing and Investment Company, First Investment Company and Bursa Athena, while six percent will be owned by the Public Institution for Social Security,” he added.
“According to Article 33 of the Capital Markets Authority founding law no. 7/2010, the bourse’s license was to be given to a shareholding company that would replace the Kuwait Stock Exchange. It also set the privatization percentages and categories of this company, including a percentage between 26 and 44 percent for underwriting by companies registered at the stock market, along with an international market operator,” explained Melhem.
This privatization represents a great economic success. “It supports the financial reforms in the country. It also strengthens the role of the private sector in the local economy. This will provide an investment environment of international standards, as well as attract foreign investments and retain local investment. This privatization is part of Kuwait’s 2035 vision,” he added.