Capital Management Authority in Kuwait - Essay Example

The duties include recruiting the manager, establishing policies, protecting of the company’s assets and investments. Since the establishment of the Kuwait Market Authority in 2010, several challenges have been felt, as put forward by Kachel and his co-authors. Some of these challenges include a deficiency in the development of adequate Islamic markets for financial and cash investments. 

Kachel and his co-authors further add that Kuwait lacks a flexible liquidity market that could allow Islamic Financial Institutions. Due to weak governance factors, the global financial crisis of 2008 affected Islamic Financial Institutions. The formation of the Capital Market Authority in Kuwait led to the prohibition of money laundering, a license for stock markets was introduced, foreign funds were regulated, set up of investment standards, used of the Arabic language, and the market fee was set at KWD 50,00 for foreign investment, purchase of credit regulation was introduced.

       In conclusion, the introduction of the Capital Markets Authority, in Kuwait, has significantly improved the governance of its Islamic financial institutions.  This has been achieved through several sound regulations, which keep its corporations either owned by the government or foreign in check.