KUWAIT: Boursa Kuwait Securities Company (KPSC) held its Annual General Assembly meeting for the year ended 31 December 2022 on March 23, 2023 at the Boursa Kuwait building. The board of directors’ recommendation to distribute cash dividends of 85 fils per share was approved, amounting to KD 17,065,939 (Seventeen million, sixty-five thousand, nine hundred and thirty-nine Kuwaiti dinars). Shareholders registered by the end of the record date of April 9, 2023 will receive their share dividends by the end of April 12, 2023, the company’s scheduled payment date.
The board of directors’ report, the independent auditor’s report and the consolidated financial statements for the fiscal year ended on 31 December 2022 were all approved, as were the corporate governance and audit committee reports and the remunerations and benefits report for BOD members.
The meeting was chaired by Chairman Hamad Mishari Al-Humaidhi, who welcomed the esteemed shareholders then read the reports issued by the Kuwait Clearing Company regarding the quorum of attendance, which came in at 68.92 percent as well as the items on the agenda.
Shareholders agreed to grant the board of directors’ authorization to buy or sell the company’s shares, provided they do not exceed 10 percent, in accordance with the provisions of Law No 7 of 2010 and its executive regulations and amendments. Shareholders also discussed and approved the related parties’ transaction report for 2022 and the related parties’ transactions, which are proposed to be conducted during the upcoming 2023 financial year. Finally, the reappointment of Badr Adel Salem Al-AbdulJader from Ernst & Young (Al-Aiban, Al-Osaimi & Partners) as the auditor for the fiscal year ending on 31 December 2023 was also approved.
Boursa Kuwait Chairman Hamad Mishari Al-Humaidhi commented on the results, stating: “Boursa Kuwait delivered exceptional financial results in 2022, with an increase in profit by 13.3 percent from 2021, from KD 15.9 million to KD 18 million. The Group’s total assets came in at approximately KD 119.6 million in 2022, which is an 8.3 percent increase versus the 2021 total of KD 110.4 million, while shareholders’ equity attributable to equity holders of the parent company increased from KD 60.6 million as of 31 December 2021, to KD 65.5 million as of 31 December 2022, an increase of approximately 8.1 percent.”
Al-Humaidhi continued, “Boursa Kuwait maintained its proactive approach to drive strategic sustainability progress in line with the United Nations’ Sustainable Development Goals (SDGs) and our Corporate Sustainability pillars – Community and Environment – while leveraging our resources, reputation and relationships to support all our valued stakeholders throughout the year.”
Al-Humaidhi extended his sincerest gratitude to His Highness the Amir Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah and His Highness the Crown Prince Sheikh Mishaal Al-Ahmad Al-Jaber Al-Sabah on behalf of Boursa Kuwait and its Board of Directors, for their continued support to the stability of Kuwait’s economy and development.
He concluded by thanking the shareholders for their continuous trust in Boursa Kuwait, and the Capital Markets Authority, the Kuwait Clearing Company, and all participants in the Kuwaiti capital market for their efforts in promoting Kuwait’s position as a leading regional market and Kuwait as a prominent destination for international investment.
The Boursa Kuwait Chairman also thanked his fellow board members and executive management for their diligence and dedication in contributing to the realization of the company’s strategy and goals, which resulted in the notable improvement and progress of the Kuwaiti financial market. He also thanked all company employees for their active contribution to these achievements.
Boursa Kuwait’s Chief Executive Officer Mohammed Saud Al-Osaimi also commented on the company’s results for 2022, saying, “Boursa Kuwait was able to develop its operations throughout the year, attracting institutional and retail investors both locally and globally. The company continued the implementation of its strategy to develop a more liquid and transparent capital market, solidifying its role as a key cog in the development and diversification of the national economy and working to attract investments from all over the world. These are expected to continue raising the profile of the Kuwaiti capital market around the world and creating a sound and diverse financial environment that is hailed as innovative, sustainable and progressive.”
Al-Osaimi added, “The market recorded an increase of 8.3 percent in value traded from around KD 13.6 billion in 2021 to KD 14.7 billion in 2022, with the “Premier” Market’s market capitalization coming in at KD 37.4 billion while the “Main” Market’s market capitalization was KD 9.3 billion. Additionally, operating profit for the 2022 financial year came in at KD 22.6 million, an increase of 22 percent over the total of KD 18.5 million recorded in 2021.
Total foreign turnover activity increased 29 percent from 2021 levels to reach around KD 5.5 billion in value with active foreign investment coming in at approximately KD 760 million, while total foreign activity comprised 18 percent of the total trades in the market during the year, with institutional investor activity making up to 61 percent of total turnover activity in 2022.
The Boursa Kuwait CEO also highlighted the exchange’s efforts to promoting the Kuwaiti capital market and its unique investment opportunities to the worldwide investment community, adding that the company organized two Corporate Days with HSBC and EFG Hermes respectively, which saw the participation of 15 listed companies, including Boursa Kuwait. A total of over 300 meetings between the listed companies and over 130 representatives from world-renowned asset management firms were conducted over the course of the two events. The bourse also participated in the 16th Annual EFG Hermes one-on-one conference, meeting with 20 international asset management firms and investment companies.
Al-Osaimi concluded his statement by thanking the board of directors for their unwavering support of the company’s strategy and operations, as well as the executive management team and every company employee, who have played significant roles to advance the development of the market. He also thanked the Capital Markets Authority, Kuwait Clearing Company, and brokerage firms whose expertise, knowledge and professionalism are reflected in every aspect of the successful development of Kuwait’s capital market.
Al-Osaimi reiterated the company’s commitment to modernize the Kuwaiti capital market by expanding its offerings and improving market efficiency, enhancing access and reinforcing transparency and governance as well as increasing liquidity and transparency, while fortifying investor confidence as part of the company’s efforts to enhance the market and offer investors more opportunities to profit.
Since its inception, Boursa Kuwait has worked diligently to create a thriving capital market that attracts local and foreign investors through a broad spectrum of new products and services, infrastructure upgrades, and market reform initiatives, as part of its multi-phase market development plans.
The company was fully privatized in 2019, the first government entity in the country to successfully undergo the process, bringing about greater levels of efficiency. Boursa Kuwait also self-listed in September 2020 and has made great strides in sustaining its operations and business continuity in the face of uncertainties and challenges.
Over the past six years, the company has rolled out numerous market reforms and new initiatives as part of its comprehensive multi-phase market development (MD) plans. The company also showcases some of the standout listed companies and the investment opportunities that reside in the Kuwaiti capital market through its series of roadshows and corporate days, putting these companies in touch with some of the world’s leading investment firms and financial institutions and highlighting their financial health and business strategies and outlooks, in an effort to help investors gain an in-depth understanding of the benefits and opportunities of investing in Kuwaiti companies.