KUWAIT – Nearly two years after the initial draft for financial technology regulation was introduced, Kuwait has officially launched securities-based crowdfunding platforms, marking a significant new commercial activity. This initiative, announced by Minister of Commerce and Industry Omar Al-Omar, aims to diversify financing options for small projects through licensed digital platforms, thereby supporting entrepreneurs and enhancing the country’s digital infrastructure.
Dr. Ahmed Al-Mulhim, Chief Commissioner of the Capital Markets Authority, emphasized that this development is a major advancement in Kuwait’s financial markets, promoting competitiveness, fairness, and transparency. He expressed confidence that this step would help achieve the aspirations of the private sector while further developing the nation’s digital infrastructure. The government remains committed to providing the necessary support and facilities to enhance business market competitiveness.
This new activity involves financing projects by collecting funds from a large number of people through licensed digital platforms. Dr. Al-Mulhim highlighted that the introduction of securities-based crowdfunding represents a qualitative leap in the development of local financial markets, aligning with modern financing trends and expanding investment options for various investor categories.
He also noted that the Capital Markets Authority has issued executive regulations under the title “Financial Technologies,” which this decision complements. The regulations were developed following the best international practices, with the Authority establishing the necessary regulatory and supervisory frameworks. The newly formed Financial Technologies Department within the Authority has already received numerous applications, ensuring that the regulation is activated in line with standards of fairness, competitiveness, and transparency.
