The Capital Markets Authority (CMA) has recently approved the stablishment of a single fund in the local market aimed at investing in money markets for Al-Ahly Capital Company, reports Al-Jarida daily.
This decision is part of the CMA’s broader strategy, which includes amendments to the provisions of “Collective Investment Systems” of the Executive Regulations of Law No. 7 of 2010.
These amendments govern the establishment and organization of securities activities in Kuwait.
Despite these regulatory changes, informed sources indicate a growing trend among investment companies to establish funds outside of Kuwait, fi nding it easier to create their own investment vehicles in jurisdictions like the Cayman Islands or Jersey.
These regions are appealing due to less stringent oversight and tax exemptions, making them attractive for fi rms seeking to maximize returns. In contrast, establishing funds within Kuwait involves a more complex regulatory framework and longer processing times.
Sources highlight the need for a review of local licensing requirements and conditions to make Kuwait more competitive in attracting fund establishments.