The Saudi Tadawul Group and Boursa Kuwait have signed a memorandum of understanding (MoU) to boost bilateral cooperation in the fields of financial technology and sustainability.
The MoU covers collaboration in the fields of Environmental, Social and Governance (ESG) reporting and implementation, in addition to organizing mutual events, investor relations initiatives as well as cross-listing of companies on both exchanges, according to a dual statement released Tuesday.
"Through this MoU, we hope to broaden cooperation and knowledge transfer across the Gulf’s markets in what benefits these markets and the national economies of all parties,” said Boursa Kuwait’s CEO Mohammad Saud Al-Osaimi.
Both stock exchange operators will exchange perspectives on how best to lure family businesses, government entities, and small and medium enterprises (SMEs) to list on their respective exchanges.
Khalid Al Hussan, CEO of Saudi Tadawul Group, said he looks forward to using this collaboration to encourage further knowledge sharing between Saudi Arabia and Kuwait while enhancing the experience for all market participants.
Shares of Boursa Kuwait Securities Company, which owns the Kuwait bourse and the first listed stock exchange operator in the Gulf, started trading in 2020.
Over the past six years, the Kuwaiti company has launched several market reforms and new initiatives, including standardized listing rules, as part of its multi-phase market development plans. The company also showcases some of the listed companies and the investment opportunities in the Kuwaiti capital market through its series of Roadshows and Corporate Days.
The bourse's initiatives are expected to streamline the process for companies to go public as it expects some family businesses and government entities in the Gulf state to list soon.
In February, Boursa Kuwait said it was planning to add derivatives and futures products to boost liquidity and attract more companies to list as stock exchanges in the GCC region are taking steps to encourage more domestic listings.
