Thursday 01, November 2018 by Kudakwashe

Boursa Kuwait plans to create VC platform to finance start-ups, says CEO

 

Khaled al-Khaled, the Chief Executive of Boursa Kuwait, wants to build a platform that can attract, keep and grow start-up companies so that they can eventually list on its main market.

The Chief Executive of Kuwait Stock Exchange has announced plans to set up a venture capital market to attract and support the country's growing start-ups, the first of its kind in the Gulf region.

Khaled al-Khaled said, “We are working closely with Kuwaiti young entrepreneurs to introduce a venture capital market, if they grow enough they will be listed in the Kuwaiti market.”

The stock market, which has a market capitalisation of over $90 billion, introduced a raft of reforms in recent years in a bid to raise international investor interest in Kuwaiti-listed companies.

Foreign investors currently own shares worth about 18 to 20 per cent of the Kuwaiti market. The Kuwait premier index is up nine per cent currently, as inflow increased ahead of its inclusion into FTSE Russell's emerging markets index.

Dubai based Careem became the first start-up in the Middle East to reach a valuation of over $1 billion in 2016 and currently, it is valued at more than $2 billion, reported Reuters.

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