Kuwait: Kuwait Financial Centre “Markaz” announced the launch of Securities Lending and Borrowing (SLB) services in the Kuwaiti capital markets after receiving the final approval of the Capital Markets Authority (CMA). Markaz will be offering the new service through the Forsa Financial Fund and in accordance with the rules and regulations stipulated by the Kuwait Clearing Company, Boursa Kuwait, and CMA.

Markaz, in line with its history of innovation in investment products, is the first to launch Securities Lending and Borrowing services in Kuwait. Following the introduction of the new service in mid-2022, the company worked to ensure compliance with the norms and regulations set by the local regulators.

Commenting on the announcement, Mr. Ahmed K. Al Shalfan, Vice President – MENA Equities, Markaz, said: “We are pleased to launch our Securities Lending service through Forsa Financial Fund as part of our efforts to further develop Markaz’s capital markets product offering. It reflects our ongoing commitment to providing traders and investors with a wide spectrum of innovative tools and techniques to manage their risk and grow their wealth and diversify their holdings.  This will contribute to developing the Kuwaiti capital markets. Our Securities Lending service will allow investors to take positions such as short selling, enabling the investors to potentially benefit in both directions of the market; this also will improve the liquidity of the shares by closing the mismatch between supply and demand.”

An important tool in capital markets, Securities Lending and Borrowing services enable investors to borrow and trade such shares on Boursa, hence, use this to develop and implement sophisticated trading strategies when managing their portfolios, and hence, improve their risk-weighted returns.

Notably, Securities Lending plays an important role in facilitating short selling. The new service will also contribute towards reducing market volatility, bring greater liquidity and efficiency to the market and contribute to its development.

It is worth mentioning that the launch of this new tool underpins Markaz’s commitment in creating innovative products and services, to cater to the market and investors’ needs. Over the years, Markaz had pioneered in developing new concepts and investment channels including Mumtaz ‘the first domestic mutual fund’, and Forsa Financial Fund ‘the first and only options market maker in the GCC since 2005’, in addition to launching Market Maker service and managing a variety of funds and portfolios.


About Kuwait Financial Centre “Markaz”

Established in 1974, Kuwait Financial Centre K.P.S.C “Markaz” is one of the leading asset management and investment banking institutions in the MENA region with total assets under management of over KD 1.142 billion as of 30 September 2022 (USD 3.67 billion). Over the years, Markaz has pioneered innovation by developing new concepts resulting in new investment channels. These channels enjoy unique characteristics and helped Markaz widen investors’ horizons. Examples include Mumtaz (the first domestic mutual fund), MREF (the first real estate investment fund in Kuwait), and Forsa Financial Fund (the first and only options market maker in the GCC since 2005), all conceptualized, established and managed by Markaz. Markaz was listed on the Boursa Kuwait in 1997.

For further information, please contact:
Sondos S. Saad
Media & Communications Department
Kuwait Financial Centre K.P.S.C. "Markaz"
Email: ssaad@markaz.com