Boursa grapples with surge in inactive trading accounts

Hesitation to list continues, regardless of whether the exchange is government-owned or privatized. Moreover, declining market confidence, especially in some companies suffering from significant losses, dampened investor enthusiasm. To confront this challenge, there is an urgent need for the sovereign fund to play the role of market maker, injecting liquidity and restoring investor confidence. Government participation, along with private sector participation, can help enhance market depth and facilitate the success of new investment vehicles. Leveraging the strength of the banking sector, which continues to demonstrate resilience and stability, is crucial in instilling confidence among investors. Although the legislative and regulatory framework provided by the Markets Authority is strong, there is still a lack of proactive engagement by key stakeholders.

Investment companies, which were once a pivotal player in creating investment opportunities, have witnessed a decline in their role and are struggling to compete in offering innovative products. Going forward, cooperation between the Investment Authority and government agencies must be strengthened to effectively harness available market resources. With abundant liquidity in both the banking and private sectors, there is huge potential to leverage operational opportunities and drive market growth. The current year represents a pivotal moment to revitalize the Kuwait Stock Exchange and maintain the positive momentum observed in early 2024. By addressing the underlying challenges and fostering a conducive investment environment, Kuwait can unleash its market’s full potential and attract renewed interest from investors.

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