Kuwait bourse in talks with firms on trading system
By Ulf Laessing and Anika Lehmann
KUWAIT/FRANKFURT, July 24 (Reuters) - The Kuwait Stock Exchange is in advanced talks with Germany's Deutsche Boerse (DB1Gn.DE) and two other market operators to buy a trading system, eyeing a deal by the autumn, sources familiar with the situation said.
The second-largest Arab bourse is looking at trading systems and cooperation from Deutsche Boerse, NYSE Euronext (NYX.PA) and Nasdaq OMX Group (NDAQ.O), sources familiar with the case have told Reuters.
"The talks are in an advanced stage," said one source, adding that talks with Deutsche Boerse particularly had gone well so far, with Kuwaiti technical bourse staff expected next week in Germany for checks on whether both systems fit.
Another source said a decision might come after the Muslim fasting month of Ramadan which starts in September.
Kuwait, the world's seventh-largest oil exporter, wants to emulate some of the success of Gulf Arab neighbours such as Dubai which have managed to diversify their economies away from oil, and attract investors and financial institutions.
U.S. consultancy McKinsey & Co, which was commissioned to review the Kuwait bourse's performance, earlier this year made proposals including an overhaul of the trading and administrative system.
The bourse, which has been trying to attract more foreign investment, has been hit by a string of irregularities and Kuwait is the only Gulf Arab state that has no financial regulator to supervise the stock market as plans to establish one have been stalled in parliament.
Other Gulf fiancial markets have attracted foreign partners, with Qatar saying in June it had agreed to sell 25 percent of the Doha Securities Market to NYSE Euronext for $250 million to become the region's financial hub and extend global links.
But Kuwait's parliament has been reluctant to privatise state firms which employ a large number of citizens.
"A stake sale could be the final step of a partnership with a Western operator but this is very long-term thinking," said one source. (Editing by Greg Mahlich)
