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Kuwait stock market hopes reclassification will attract investors

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The CEO of Boursa Kuwait is “confident” the Kuwaiti stock exchange will achieve MSCI ‘emerging markets’ status in 2019.

Boursa Kuwait currently holds ‘frontier’ status and it’s hoped that an upgrade to ’emerging’ status will raise its profile and attract more international capital into the market.

In a television interview, CEO Khaled Abdulrazzaq Al Khaled said that Boursa Kuwait is in the midst of a major overhaul. According to an earlier statement, the overhaul includes the introduction of mew market-capitalised indices and circuit breakers on securities and indices to curb volatility, along with new listing requirements.

“We have implemented halfway and are continuing until we are done in 2021,” he said. “We are going to introduce soon short-sell SLB [stock lending and borrowing] and REITs [real estate investment trusts].”

MSCI has already announced the addition of Kuwait to its watchlist for potential reclassification to ‘MSCI Emerging Markets’.

MSCI will announce its decision in June 2019 for potential implementation with the May 2020 Semi Annual Index Review. The simulated MSCI Kuwait index would have a potential weight of 0.3% in the MSCI Emerging markets index.

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