Very important, so we submitted our request to enter IOSCO in 2014—but there were gaps in our law. We succeeded in amending the gaps by 2015 and went on to establish the regulations for the CMA to manage the whole sector through a massive number of bylaws. Finally, Kuwait resubmitted the application to IOSCO and we became a full member in 2017.
Our vision was to invite the international investors to our market, and we had a barrier concerning the differences between the weekend here and in the West. So, we converted to the post-trade model for delivery versus payment, T+3, and this eliminated the differences. This step was very important to be reclassified by FTSE Russell—and we were then promoted to a secondary emerging market by them.
And after that, we began thinking of developing the capital market as a whole, so we established a joint committee between the CMA, Boursa Kuwait—the exchange market—and the Kuwait Clearing Company (KCC). The committee made a plan that consisted of four phases.
During that time, in 2018, we had also been promoted to emerging market by Standard and Poor's (S&P). And in 2019 we were promoted by MSCI. This achievement was possible because of the development of the market and the work of the joint committee.
FTSE Russell, MSCI and S&P Dow Jones have all decided to upgrade the Boursa Kuwait and classify it as an emerging market, which helps to attract both institutional and private investors to the exchange.

The impact of this reclassification in the evolution of the Kuwait capital market has been massive. It is an international standard that has changed the image of the market. Being recognized by the three biggest international rating companies—trusted by both non-Kuwaiti and Kuwaiti investors—increased the inflow of investment. Before the reclassification, the inflow of non-Kuwaiti investors was about half a billion Kuwaiti dinars; now, it is around five billion Kuwaiti dinars, and the number of institutional investors has increased.
Currently we are in the process of cleaning the market of what we call “paper companies” and specializing on the added-value market. The listing has grown because of the increased trust in the market. By attracting investment to Kuwait, we have greatly increased the liquidity of the market.
We also succeeded at the privatization of the exchange, Boursa Kuwait. This is the first instance in the country, and our Vision 2035 stipulates that we should spur the private sector to take a leading role in the development of the country.

Kuwait has the third-highest GDP in the GCC and the most liberal political environment. We have a very sound and a trusted judiciary system which gives the international investor the guarantee that if there is any conflict, he will get justice. Of course, the CMA and the Central Bank of Kuwait are following the best international standards; Kuwait follows the 38 IOSCO principles. We have reached 95% in compliance, but following our latest assessment, I think we will reach 100% soon.
We are also launching the privatization program, having begun with Boursa Kuwait and following with the Shamal Az-Zour Power Plant, which is already listed, and another public-private partnership company in healthcare.
The government companies owned by the Kuwait Investment Agency or by the oil sector are on the road to privatization. We have government authorities specializing in granting facilities to SMEs, and we have an authority for public-private ownership.
Furthermore, we have Silk City, a master-planned, 250-square-kilometer city in northern Kuwait, now in the form of a draft law hopefully to be approved in parliament. This will represent a real revolution in Kuwait; Silk City will be like a country inside the country. It will have a local government to deal with combining the city with Mubarak Port. This should attract international investors.

We have a four-year strategy consisting of around 132 initiatives. We have already established the Fintech program, and we will shortly establish a unit dealing with innovations and SMEs; the steering committee is established, the executive committee as well, and our consultant is working with the committees to establish the Fintech framework and regulation.
There is a draft law in parliament to grant CMA the role of regulating crowd funding so as to encourage small businesses, enterprises and innovators to collect funds under our control. This would give assurance to the shareholders that the CMA is behind them, protecting them, encouraging them to share innovations.
We have already amended our bylaws to establish a venture capital fund. This will accommodate the small businesses or the high-risk businesses. It will help businesses start, giving them the support and the expertise to grow and then to be listed in the exchange.
The exchange is also planning to create a platform for the SMEs to be traded. Furthermore, family-owned companies are a big component of the economy, and we encourage them to be listed in the exchange. These are old companies, maybe 50 or 60 years old. We are shaping the road for them, and we made an amendment to our bylaws to encourage them to be listed.
We are planning for a future where we don't depend only on oil.