Kuwait capital markets have fallen behind regional ones that have achieved rapid progress, either in terms of infrastructure or the return on capital, Kuwait Economic Society (KES) Secretary Mohannad Al-Sanea has said.
"The UAE and Qatari markets rose in May 2014 to the level of emerging markets," Al-Sanea added in a KES paper at the conference on the future of Kuwait's capital market and prospects of developing the Stock Exchange (KSE) that kicked off earlier on Sunday.
According to the paper, Saudi Arabia has carried out various reform programs in its capital market, opening it for foreign direct investments (FDI). This paves the way for listing the market on the Morgan Stanley Capital International (MSCI) index.
Al-Sanea called for analyzing measures that can be taken to stir investors' interest in the Kuwaiti market.
This requires a clear method for human resources policies at the Kuwait Capital Market Authority (KCMA), he said.
He also urged setting an integrated system for the profession of a "market maker" according to which companies will be offered licenses. He stressed the role of market makers to provide liquidity and enhance investors' confidence in the market.
The real problem of the economic situation lies in certain legislations that take toll on the business, former member of the KCMA Commissioners Committee, Youssef Al-Ali, told the conference. He cited privatization and BOT laws as two examples.
Al-Ali stressed the need for an economic view that covers remedying the capital market.