Role of KSE in the economy of Kuwait

The stock exchange of the country is playing vital role in the economy of the country because it shows the clear statics and averages of the business, industries and finance of the country and it also shows the average of the country. It splaying central role by performing the various functioning of the economy which is used to providing the back bone to infrastructure of the nation’s economy. Kuwait stock exchange helps the companies for raising the money to expanding. It is also used to providing the abilities to the individuals for investing in the companies

Kuwaiti stock exchange is performing the role of measure for the various investors to investing in the business because it shows the shares value of the company both the market share of the company is high or low for the investing perspectives. Due to 2005, against the major currencies the relative stability is maintained by the exchange rate of the Kuwait in dinar. It means the KSE is maintaining the value of dinar against the other countries.  

This all phenomena are performing under the policies of the exchange rate which is based on the pegging of the Kuwait Dinar. Stock exchange of the Kuwait controls the economy of the Kuwait for preventing from the currency crisis. The pegging of the Kuwait Dinar is used for the exchange rate of the US dollar according to specific margins. In the beginning of the 2003 CBK started to enforce with accordance of the Decree No. 266 in year 2002. It is issued by the exchange rate policy of the KD in October 2002 (Web Archive Org, 2017).

Huge variety of limited and diverse quality of the stock is offered by the Kuwait Stock exchange which is involved connecting the numbers of growing market instruments. Stock exchange is also used to make the economy of the Kuwait for domestic and foreign both markets. The capital market of the Kuwait is also encouraging by the Kuwait stock exchange market. It is also encouraged the development of capital market as well as those investors who have concern to investing something in the businesses of the Kuwait. The devotes of the stock exchange included as the members, investors, workers and government nation. The major purpose of the stock exchange is to providing the awareness to the investors for investing in the business for improving the growth in the economy of the Kuwait.

The major role of the stock exchange in the economy of the Kuwait is to maximizing the return on the savings which can suffer for the static of the banks accounts of the peoples of the Kuwait according to the low returns. Kuwait stock exchange promises for delivering the high profits by which the investors if the Kuwait can avail the flexibility, diverse opportunities and measure of assurance. Kuwait stock exchange is performing the active role for enhancing the economic activities of the Kuwait. It can facilities the growth of the company, redistribution of wealth and also for the corporate governance (Boubakari, 2010).

References of Role of KSE in the economy of Kuwait