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How can we boost Kuwait as a market where corporates issue debt, both high yield and investment grade?

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تم إضافة السؤال من قبل مستخدم محذوف‎
تاريخ النشر: 2016/04/05
Shahbaz Hayder
من قبل Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Generally there must be a good Bond Market to handle bonds issuance both on primary and secondary basis.

 

The regulations related to bonds issuance and their trading must be 'corporate as well as investors' friendly and must ensure the security of investors' money.

 

Introduction of different bonds types with varying interest payment options will promote this market rapidly. This step will match the choice of different investors with the relevant category of bonds.

 

Bond interest / income should not be taxed more as compared to dividend income. Both must be treated fairly and on equal grounds.

 

Promote Bond Funds which will allow the individual investors to overcome large initial and incremental trading sizes requirements. Exchange-traded funds (ETFs) can be another alternative to trading or investing directly in a bond issue.

 

As Kuwait is an Islamic country and most of the projects are under the control of the Government. In this scenario, Sukuks could be a good option as these will provide riba free income and back by the cash flow stream of government related projects and assets.

Nuridin Islam Diab
من قبل Nuridin Islam Diab , Training Manager , Bbusinesss LLE

If you're suggesting that corporations in Kuwait issue corporate bonds with high interest rate, I don't agree with this strategy and I think it will not happen on a wide scale in Kuwait. I suggest instead to go for Sukuk investments whether they are backed by government projects or corporations. Those Sukuk are compliant with Islamic Shari^ah and are not based on Riba (unlike corporate or government bond). Many people are looking for such Halal alternative investment vechiles in the Arab countries. All those corporations need to do is to start SPV companies (special purpose vehicle) based on the future mega projects they have and involve the public in funding them. 

Ghassan Elias Kteily
من قبل Ghassan Elias Kteily , CEO , ASK Sal & SONAF Business Limited, Licensed CIF @ CySEC

High Yield Investment Grade Debt instruments enhance liquidity while offering security to lenders, thus stimulating growth

IRFAN SAIYED
من قبل IRFAN SAIYED , Branch Manager - WMS , Angel Broking Ltd

If we look at the immigrant population in Kuwait is about then it is at 69%. Looking to all kinds of Immigrants sukuks is the best option.

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