Kuwait’s Capital Markets Authority launches Emerging Companies (Start-ups) Market to fuel growth for smaller businesses
The Kuwait Capital Markets Authority (CMA) has recently passed Resolution No. 108 of 2025 Regarding the launch of the Regulatory Environment for the Emerging Companies Market in the Exchange. The initiative introduces a new market segment aimed at supporting the capital-raising needs of smaller and Emerging Businesses, while enhancing investment opportunities within Kuwait’s financial sector.
The resolution amends several provisions of the Executive Bylaws of Law No. 7 of 2010, specifically Book X (Disclosure and Transparency), Book XI (Dealing in Securities), and Book XII (Listing Rules). It also introduces new appendices addressing the fees applicable to listing on the Emerging Companies Market and a client acknowledgment form concerning the nature of investment risks associated with this market segment. The resolution was published in the Official Gazette on 6 July 2025 and will be implemented by the relevant authorities.
Businesses that meet the requirements for the Main or Premier Markets can still apply for listing under the Emerging Companies Market, provided they offer reasonable justification for doing so. The CMA reserves the right to accept or reject such applications at its discretion.
Key features of the new market include certain exemptions from standard regulatory obligations. For example, companies listed on the Emerging Market are exempt from several corporate governance provisions, and Non-Kuwaiti companies are also exempt from certain listing conditions.
Importantly, the CMA has limited participation in the Emerging Companies market to professional clients. Retail clients may only invest if specific safeguards are met. These include acknowledgment of the risks involved — such as illiquidity, long-term holding periods, and potential loss of capital — through a formal statement signed before trading.
Companies listed under this framework are still expected to meet basic governance standards. Their Board of Directors must monitor internal operations, ensure important information is disclosed on time, and keep shareholders properly informed.
In addition, major shareholders will face limits on selling their shares during the first 18 months after listing, with gradual allowances over time.
Why this matters?
The creation of the Emerging Companies Market reflects a shift towards deepening Kuwait’s capital markets and attracting a wider base of investors.
It provides smaller and Emerging Companies with a tailored platform to raise capital under a regulatory framework designed to balance flexibility with investor protection.
For investors, it opens new opportunities in a growing market segment, with clear risk disclosures ensuring informed investment decisions.
If you want to discuss how this affects your business or investment strategy, contact our Kuwait team at asar@asarlegal.com for tailored advice.
