How to Boost Kuwait as a Market Where Sovereign Issue Debt - Case Study Example

The paper "How to Boost Kuwait as a Market Where Sovereign Issue Debt" is an outstanding example of a marketing case study. The study aims at finding out how Kuwait can be boosted as a market where the sovereign can issue debt. The paper will focus on the Kuwait bond market whereby analysis of the bond market and how it enhances the economy in Kuwait. The bond market participants have also targeted as well as the bond market size and enable us to understand the various activities in the Kuwait market. The study will further narrow down to the bond investments with a close look at the investors in Kuwait and their contributions to the economic development in Kuwait. It would also deal with the bond indices, types of Kuwait bond markets as well as the history of Kuwait bonds.

Introduction

The country Kuwait has proved to be home to the most ancient in the Gulf Cooperation Council as well as an old country regarding financial sectors existing in the Middle East country. Kuwait’s National Bank was the first shareholding company in Kuwait whose formation in 1952 was to some local business people. By the beginning of 1978, some investors and market participants embarked on moving to the formal market that was by then under strict control into the informal markets that were set on Kuwait city outskirts (Asia Dept, 2013).

A new exchange emerged and operated based on very outdated cheques. There were instances of bounced cheques that led to defaults that in the end saw damage in Kuwait and the Gulf region as a whole. The financial system in Kuwait was later wiped out except for the National Bank of Kuwait. The country then began rebuilding a financial industry of the country. The development of the new market was aimed at regulating activities about investments in Kuwait and also serving as a venue for trade. The new market rose faster but declined later on. The late 1990s however, saw an increase in the capital market of Kuwait. There were rapid growths in participants in the market.

Bond Market and Market Participants

Kuwait has been a country controlled by the various sovereign as well as bond issues related to the government. Kuwait supports this trend with high corporate sales that have hinted at a potential rise in the capital. There became a crisis in the finance and investments companies in Kuwait. Some companies were indebted thereby making banks more cautious when it comes to lending.