Kuwait al­lows for­eign in­vestors to own and trade lo­cal banks’ shares

Gulf Business - - NEWS AND VIEWS -

For­eign in­vestors are now al­lowed to own and trade in Kuwaiti banks' shares, ac­cord­ing to a new de­ci­sion is­sued by the Min­istry of Com­merce and In­dus­try.

How­ever, the de­ci­sion states that the own­er­ship of a for­eign in­vestor shall not ex­ceed 5 per cent in any Kuwaiti bank, di­rectly or in­di­rectly, the of­fi­cial Kuwait News Agency (KUNA) re­ported.

The ap­proval of the Cen­tral Bank of Kuwait should be ob­tained if own­er­ship ex­ceeds 5 per cent of the bank's cap­i­tal, the min­istry said.

The lat­est move comes in ac­cor­dance with De­cree 694, which notes that non-Kuwaiti in­vestors shall be al­lowed to own and trade in Kuwaiti banks' shares, KUNA re­ported.

The min­istry said that the Cap­i­tal Mar­kets Au­thor­ity re­ceived sev­eral en­quiries from in­ter­na­tional in­vestors to lift re­stric­tions.

The lat­est de­ci­sion comes ahead of in­dex-com­piler MSCI's an­tic­i­pated move to up­grade Kuwait to emerg­ing­mar­kets sta­tus next year.

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