Not Too Late to Regulate: The Case of Kuwait Capital Market Authority

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Abstract

Kuwait stock market is considered to be one of the oldest in the Middle East region, and the second largest capital market in the Gulf region. Kuwait lagged behind other countries in the region in forming an independent regulatory body to regulate its capital markets. Kuwait Capital Market Authority (CMA) was established in the year 2010 and faces difficult challenges to gain legitimacy and to achieve its goals. The aim of this paper is to provide a historical perspective on Kuwait Stock Market and the birth of the capital market authority and its future impact on accounting regulation in Kuwait. Accounting regulation and theories of economic regulation will be highlighted in this paper to explain why Kuwait had to establish CMA, even though taking such a step is about few decades late.

Authors

• Saad A. Alkazemi, Kuwait University

• Mashael Altawash, Kuwait University