Kuwait: Kuwait Financial Centre “Markaz” has reinforced its financial market leadership through the exceptional performance of its Market Maker Desk in 2024. The desk successfully traded KD 762 million, accounting for 33.4%, on average, of the total trading value within the market maker portfolio, and representing 5.1% of the total market trading value on Boursa Kuwait. These results highlight Markaz’s expertise in market making and its ability to drive liquidity, enhance market efficiency, and create tangible value for a diverse range of blue chip and small-sized companies. With a diversified portfolio encompassing 15 listed companies across various sectors, Markaz continues to lead among Kuwait’s largest market makers.
Throughout 2024, Markaz played a leading role in maintaining or securing Premier Market positions for 10 listed companies in Kuwait. Two additional companies, Combined Group Contracting Co. and Al Eid Food Co., also entered the watchlist for Premier Market eligibility. These achievements demonstrate the effectiveness of Markaz’s market-making strategies in strengthening the market positioning of its portfolio companies.
Backed by deep sectoral expertise and advanced trading infrastructure, Markaz is one of the largest market-making desks in Kuwait. The company continues to lead in providing financial solutions that enhance stability, price discovery, and overall trading activity. Markaz was also among the first financial institutions in Kuwait to obtain a Market Maker license from the Capital Markets Authority (CMA), reflecting its commitment to fostering a well-functioning and liquid financial market. The company’s approach to market making is rooted in a data-driven strategy that ensures listed companies meet liquidity requirements for Premier Market status while simultaneously contributing to a dynamic and efficient trading environment.
Mr. Azzam B. Al-Otaibi, Assistant Vice President, MENA Equities at Markaz said: “We are proud to be among the first financial institutions to obtain a Market Maker license from Kuwait’s Capital Market Authority (CMA). Today, our market maker portfolio comprises of a diverse set of 15 companies across different segments of Boursa Kuwait, 10 of which are listed on the Premier Market. Over the past year, we have played a key role in supporting consistent trading activity and enhancing overall trading efficiency across our portfolio.”
Mr. Al-Otaibi added: “Market making continues to have a profound impact, not only on local investors and the Kuwaiti market but also on the international stage. Increased trading activity has helped position companies in our portfolio for inclusion in key global indices, such as the FTSE Emerging Markets Index and the KIA Shariah Index, further reinforcing Kuwait’s position in the global financial landscape.”
With over 50 years of leadership in financial services, Markaz has consistently been at the forefront of investment banking and asset management in the region. The company has pioneered a range of innovative financial products and services, including Mumtaz, Kuwait’s first domestic mutual fund; MREF, the first real estate investment fund in Kuwait; and Forsa Financial Fund, the first options market maker in the GCC since 2005. Markaz also launched the GCC Momentum Fund, the first passive fund of its kind in Kuwait and the wider GCC, which was awarded Best Momentum Fund Innovation by Global Finance in its first year. Its commitment to excellence and strategic market-making expertise continues to support the growth and development of Kuwait’s capital markets, reinforcing its reputation as a leader in financial innovation.
As Kuwait’s capital markets evolve, Markaz remains committed to expanding its market-making role and empowering listed companies with the tools needed to thrive in a competitive financial environment. Markaz’s role as market maker is based on its firm belief in the importance of this tool on the financial markets and the shares of listed companies. The market maker service aim to create a balance between supply and demand, bridge the gap between the buying and selling prices, thus narrowing down bid-ask spreads to enhance trading efficiency. Market making can positively affect companies' borrowing costs, and aids in price discovery. Market making services also support the overall development of the Kuwaiti economy by motivating companies to list their shares on the national stock exchange.
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 1.41 billion (USD 4.57 billion) as of 31 December 2024. Markaz was listed on the Boursa Kuwait in 1997. Over the years, Markaz has pioneered innovation through the creation of 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), Forsa Financial Fund (the first options market maker in the GCC since 2005), and the GCC Momentum Fund (the first passive fund of its kind in Kuwait and across GCC that follows the momentum methodology), all conceptualized, established, and managed by Markaz.
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