Kuwait plans to improve its financial sector by extending trading hours on its stock market and changing the auction system. However, these changes aim to help the market grow and match the standards of leading financial hubs.
The new steps are part of a larger plan to improve the investment climate. By extending trading by 30 minutes, investors will have more time to complete their deals. This extra time supports better decision-making and helps with fast-changing market conditions.
The Kuwait stock market reform also introduces changes to the closing auction process. The auction will now allow more time and more flexible rules. However, investors will get better price transparency and a chance to adjust their orders during the auction.
In addition, the system will use volume-based pricing to reflect market activity more accurately. This upgrade will support exchange-traded funds and price indexes that depend on closing prices. As a result, the market will become more reliable for investors.
Kuwait wants to follow the example of other Gulf countries like Saudi Arabia and the UAE. Both of these countries have already extended their trading hours. With similar changes, Kuwait will become more attractive to international and regional investors.
The Kuwait stock market reform also prepares the market for more advanced financial tools. These include bonds, sukuk, derivatives, as well as ETFs. Such tools need longer trading windows and stronger systems to support them.
Technical tests will take place soon to check that everything works well. The Kuwait Stock Exchange will work closely with brokers and financial firms. These tests will make sure the new system works quickly and safely.
Kuwait is clearly working to make its financial sector stronger and more modern. These steps will bring more money into the market and help the economy grow. This double update of longer hours and a better auction shows Kuwait’s serious efforts to become a top financial center.
With better trading rules, more flexible systems, and improved transparency, the Kuwait stock market reform will help build a better future for investors.
