Kuwait bourse in talks with firms on trading system
July 24th, 2008 | by admin |By Ulf Laessing and Anika Lehmann
KUWAIT/FRANKFURT, July 24 (Reuters) - The Kuwait StockExchange is in advanced talks with Germany’s Deutsche Boerse(DB1Gn.DE: Quote, Profile, Research, Stock Buzz) and two other market operators to buy a tradingsystem, eyeing a deal by the autumn, sources familiar with thesituation said.
The second-largest Arab bourse is looking at trading systemsand cooperation from Deutsche Boerse, NYSE Euronext (NYX.PA: Quote, Profile, Research, Stock Buzz) andNasdaq OMX Group (NDAQ.O: Quote, Profile, Research, Stock Buzz), sources familiar with the case havetold Reuters.
“The talks are in an advanced stage,” said one source,adding that talks with Deutsche Boerse particularly had gonewell so far, with Kuwaiti technical bourse staff expected nextweek in Germany for checks on whether both systems fit.
Another source said a decision might come after the Muslimfasting month of Ramadan which starts in September.
Kuwait, the world’s seventh-largest oil exporter, wants toemulate some of the success of Gulf Arab neighbours such asDubai which have managed to diversify their economies away fromoil, and attract investors and financial institutions.
U.S. consultancy McKinsey & Co, which was commissioned toreview the Kuwait bourse’s performance, earlier this year madeproposals including an overhaul of the trading andadministrative system.
The bourse, which has been trying to attract more foreigninvestment, has been hit by a string of irregularities and Kuwait is the only Gulf Arab state that has no financialregulator to supervise the stock market as plans to establishone have been stalled in parliament.
Other Gulf fiancial markets have attracted foreign partners,with Qatar saying in June it had agreed to sell 25 percent ofthe Doha Securities Market to NYSE Euronext for $250 million tobecome the region’s financial hub and extend global links.
