1. Optional withdrawing from KSE
The withdrawal of companies from stock exchanges is not limited to the Kuwait Stock
Exchange, however, increasing numbers of companies compared to markets in the region makes
it as a phenomenon in the Kuwait Stock Exchange which lose a lot of listed companied because of
the optional withdrawal from the stock market, but also Due to write-off a number of listed
companies for failure to meet the new requirements and laws. The market suffers from the low
listing of new companies as last 4 years only 3 companies list in the market. Number of
listed companies of the region's markets are less than in Kuwaiti market, although the market
value of region companies exceeds the market value of listed Kuwaiti companies. growing
number of withdrawing companies from Kuwait market may hurt its chances of an MSCI upgrade
to emerging market status and lead listing companies to more dynamic Economies such as Saudi
Arabia and Dubai. Most of the withdrawing companies from the bourse owned by the majority
strategic (family) owners. Some of those companies are weak & couldn't adjust their positions
with the decisions set by the capital markets authority.
Some voices calling for the need to reform financial policies to avoid further future
withdrawals. The low level of trading as trading weakness led to the survival of many stagnant
stock without real movement as much linked with market dryly liquidity and weak trading.
Beside that some companies discussed Optional withdraw from the market and others waiting
approval by the General Assembly. some statics show that value of withdrawing companies is
not high as it not exceed 2.4% of market value. Projections reported by some specialists and
concerned officials of listed companies go into the possibility that provide about 15 other
company to take such a decision in the coming period, especially the reasons that push in this
direction still exist has not been processed yet. Lately Capital market authority tried to make
market more active and planned to establish third market to retreaded withdrawing companies.
Capital markets authority trying to convince listing of large companies in the market which may
help to raise the market value of the market. The Shareholders whose own shares in companies
withdrawing not affected much because the market administration announces withdrawal date
before a sufficient period allows them to get rid of these shares through the market.
Withdrawing phenomenon has negatively influence on Economic reputation to invest in Kuwait
on the basis that the financial market is the most sensitive and most expressive atmosphere for
investment in any country.

2. Withdrawing Reasons
Weak Trading Activity
Weak trading on the shares of listed companies, where the shares of those companies are
remaining inactive for long months, so the owners of these companies see the futility of
counting on the Kuwaiti bourse.
Poor Capitalization
Weak operating environment in Kuwait market over the past four years, which is reflected
negatively on the Kuwaiti bourse strongly, in terms the value of daily trade decreased from
100 Million KWD before the financial crisis to below 12.5 Million KWD by the end of 2015.
Low Liquidity & Turnover in The Market
Kuwait Stock Exchange suffers from poor liquidity, which is considered one of lowest in the
region. Value traded which has fallen by 45% in 2015, also led to a decline in turnover ratio to
12% compared to 22% in 2014, the lowest rate seen in recent years.
Low stock value
some companies see that Market value of its shares does not reflect real value of shares as
share price under book value.
Restructuring and Continues Losses
When stock face long suspension periods and accumulated losses are exceed 75% of their
capital, they face compulsory withdrawing so they decide to withdraw optionally better than
CMA obligatory withdraw and to take its time to Restructure their financial and operating
positions.
Listing Requirement and Laws
Mechanisms of disclosure contained in the money markets law is seen as stressful for some
companies with strict penalties ,which makes some companies prefer escape from the
pressure.
High Listing Charge Comparing With Company Profits
Companies pay an annual fee while shareholders not sure it will gain profits back from its
presence in the Kuwait stock exchange

3. Number of Withdrawing Companies
next chart express number of companies which decide to choose optional withdrawing
Table 1 shows the number of withdrawing companies, their sectors, number of Executed
Transactions and number of Traded Shares during past tow years of year of withdrawing
Table (1)
Company Name
Delisting
date
Sector
No. of
Executed
Transactions
No. of
Traded
Shares
Before
previous
year
Previous
year
Before
previous
year
Previous year
United Gulf Bank 10/1/2013 Banks 1787 392 36,450,000 5,543,546
0
1
2
3
4
5
6
7
8
9
2013 2014 2015 2016
Number of Withdrawing Companies

4. Global Investment House 6/19/2013
Financial
Services
7859 0
733,520,00
0
0
Al Safat Investment 3/25/2013
Financial
Services
9,122 4,251 63,501,200 327,720,000
Al Ahlia Holding 25/3/2013
Real
Estate
8,871 6,294
1,195,040,0
00
1,099,840,000
Al Safwa Group Holding 14/1/2014
Financial
Services
18,612 0
2,820,952,1
54
0
Industrial & Financial
Investmen
23/1/2014
Financial
Services
3,169 739
137,732,33
9
67,938,701
Kuwait Commercial Markets
Complex
19/3/2014
Financial
Services
3,650 10,621
235,424,41
4
602,580,655
United Industries Company 28/12/2014
Financial
Services
3,169 2,587
137,732,33
9
48,925,590
Kuwait Pipe Industries & Oil
Services
7/8/2014
Basic
Materials
4,410 2,986
109,148,85
5
68,104,219
Union Real Estate Company 1/3/2015
Real
Estate
5,163 103
253,593,73
8
1672281
Manafae Holding 22/11/2015
Financial
Services
1606 121 84,095,334 8,243,440
Alqurain Holding 13/12/2015
Financial
Services
18,691 12060
858,711,50
2
504328733
Pearl Of Kuwait Real Estate 26/41/2015
Real
Estate
7,313 3629
194,255,91
6
87776625
Strategia Investment
Company
1/3/2016
Financial
Services
57 96 260,672 977,802
Kout Food Group 8/3/2016
Consumer
Services
215 359 2,552,059 4,647,699
Kuwait Packing Materials
Manufacturing
17/4/2016 Industrials 37 79 52,253 340,959

5. Al-Nawadi Holding 2/5/2016
Consumer
Services
230 389 3,511,707 8,452,579
City Group 19/6/2016 Industrials 262 279 641,741 900,741
Kuwait Medical Services 14/9/2016 Parallel 2 44 110 954,820
United Foodstuff 30/11/2016
Consumer
Services
11 38 63,909 93,726
Future Communications 26/12/2016
Technolog
y
888 549 7,994,388 6,198,283
Table(1)show that Nine of withdrawing companies are from financial service sector then four
companies from Real Estate sector, one company from banking sector and one from non-Kuwaiti
companies .
Also table (1) show decreasing number of Executed Transactions and number of Traded Share
from past to present for mostly withdrawing companies.
Noting that those 21 companies use optional withdraw from market while there were some
companies face write- off from market as they can't match with new market laws and
requirement's as stock face long suspension periods or accumulated losses are exceed 75% of
their capital.
In the other side only New three initial public offering in the market over last four years, those
companies were Warba Bank, Kuwait Telecommunication Co and Mezzan Holding operating in
bank, telecommunication and consumer goods sectors reprehensively.
Previous notes shows the difference between number of new IPO in market comparing with
number of company that choose optional delisting from market over last four years , so this
different between twenty one withdrawing companies and only three companies in the same
period show and express companies attitude to not use their financial instrument using Kuwait
stock exchange.
Some analysts Expected more companies to choose withdrawing from KSE to reach 50
companies by the end of 2017.
How withdrawing affect market value & sector
Table(2) shows yearly total volume, value and number of Executed Transactions over last ended
four years.

6. 2012 2013 2014 2015
No. of
Executed
Transactions
1204934 2252744 1226739 988073
Number of
Traded Shares
82805671522 129921339269 54659783754 43193179400
Market value 7215905079.482 11389419336.934 6175730578.765 4009809774.334
Some statistics shows that average market value & volume didn’t suffer after market loss a lot of
companies even it use optional withdraw or obligatory withdraw as they market share
contribution is low and this huge decrease in market volume is because low trading activity and
market liquidity.
Also shows that traded shares in market by the end of 2012 was about 23.1 million shares reaching
12.8 million by the end of 2015
Number of Executed Transaction decline from 280,907 trade transaction by the end of 2012
reaching 220,040 trade transactions by the end of 2015
Table (2) shows that the market value of listed companies on the Kuwait Stock Exchange
dropped from 7.2 billion KWD by the end of 2012 to 4 billion KWD by the end of 2015 and
expected to fall to 3 billion by the end of the year 2016.
Chart (2) shows snapshot real estate and financial services sectors as half of withdrawing
companies from it

7. As it obvious number of Traded Shares for both sector decrease sharply from 2012 to end of
2015 to be about less than 50% past operations not only
Capital Market Authority prepare Proposal to establish third market trying reduce the growing
phenomenon of the withdrawal of companies, where will all the companies that traded shares
away from the primary and the secondary market , which withdraw from the Kuwait Stock
Exchange because of non-compliant with the regulations of the Capital Markets Authority, or
their losses exceeded 75 % of total capital, in addition to companies withdrawing voluntary or
compulsory, noting that the third market project will be Web-site display stock trading for
everyone to implement supply and demand operations with full transparency.
Capital Market Authority capital market authority should process some Obstacles that make
companies decide to take the decision of withdrawing. Mechanisms of disclosure contained in
the money markets law is seen as stressful for some companies listed as the penalties strict,
which makes some companies prefer cry from the pressure.
Negatively influence economic reputation to invest in Kuwait on the basis that the financial
market is the most sensitive and most expressive atmosphere for investment in any country.
0
10,000,000,000
20,000,000,000
30,000,000,000
40,000,000,000
50,000,000,000
60,000,000,000
2012 2013 2014 2015
real estste
financial service