Kuwait city: Listed companies on Boursa Kuwait are experiencing a significant change in their operating practices and disclosure methodologies as sustainability reports become mandatory starting in 2026. This move reflects the growing trend toward enhancing transparency and boosting environmental, social, and corporate governance principles in the Kuwaiti market.
According to Kuwait News Agency, this transformation comes amid accelerating global economic changes and increasing demands from investors and international financial institutions to review companies' non-financial performance alongside traditional financial data. Sustainability disclosure serves as a pivotal tool for investors, offering a more comprehensive picture of corporate performance and helping assess non-financial risks that may affect sustainability of profits in the medium and long term.
These reports contribute to strengthening the confidence of local and foreign investors, improving companies' credit and investment ratings, supporting responsible institutional investment decisions, and enhancing discipline and governance within companies. The Kuwait Capital Markets Authority issued a regulatory circular mandating that companies listed on the First Market (Premier Market) prepare and submit sustainability reports starting in 2026. These reports will cover company performance for the 2025 financial year and be disclosed on Boursa Kuwait's website within specific timeframes to ensure compliance with global best practices.
The mandatory adoption of sustainability reports aligns with the objectives of Kuwait Vision 2035, which prioritizes sustainable development, economic diversification, and strengthening the private sector's role. This approach is crucial for supporting economic transformation, stimulating innovation, and improving the business environment, thereby reinforcing Kuwait's position in global competitiveness and investment indices.
Sustainability reports focus on three main pillars: the environmental dimension, addressing companies' policies on natural resource management, energy efficiency, reduction of carbon emissions, waste management, and environmentally friendly practices; the social dimension, covering workplace environment, equal opportunities, training, and occupational health and safety; and governance, focusing on board structure and independence, compliance policies, risk management, and transparency.
Boursa Kuwait has been instrumental in paving the way for this transformation by launching awareness initiatives, issuing guidance manuals, and organizing workshops and training programs to familiarize companies with sustainability requirements and reporting mechanisms according to approved standards. These efforts aim to align the Kuwaiti market with global trends and enhance its competitiveness as a transparent and efficient regional financial center.
Executive leaders at listed Kuwaiti companies have affirmed that sustainability is no longer a regulatory option or formal obligation but a core element of long-term corporate strategies and a fundamental pillar for growth, trust, and compliance with international standards, in line with the UN Sustainable Development Goals and Kuwait Vision 2035. In statements to Kuwait News Agency, they explained that sustainability reports provide a comprehensive view of corporate performance, strengthen investor confidence, and improve credit and investment ratings.
Bassel Kanaan, CEO of Gulf Cable and Electrical Industries Group, emphasized the company's commitment to sustainability as a core element of its strategy and operational activities. He explained the proactive steps taken to address climate change risks and the company's adherence to circular economy principles through reduction, reuse, and recycling policies.
Similarly, Abdulmuttaleb Maarafi, CEO of Commercial Real Estate Company, stated that sustainability is an integrated business approach essential to the company's operations and initiatives. Meanwhile, Maha Al-Rifai, Assistant Vice President of Investor Relations at Kuwait Investment Company, highlighted the company's efforts to embed environmental, social, and corporate governance principles at all levels.
The Kuwait Capital Markets Authority announced on January 4 that 26 out of 34 companies listed on Boursa Kuwait, with a combined market value of KWD 36.7 billion (approximately USD 111.9 billion), issued the 2024 sustainability reports.