• Value of trading in unlisted shares increased by 32% to KD 224.6 million.

• Transparency and online real-time prices gained the attention of a wider range of investors and reflected in investor confidence.

KUWAIT: Kuwait's leading data vendor for unlisted shares' Over-the-Counter (OTC) Platform by Boursa, Almowazi, has released its Annual Report 2022 entitled "The Year of Combating Economic Challenges, OTC Market 2022". The report details the performance of the unlisted market for the previous calendar year and highlights the trends and developments shaping the industry.

The year 2022 presented significant economic difficulties worldwide, with many companies struggling to recover from the pandemic's aftermath. Disrupted supply chains, mounting debts, rising inflation, increased food prices, depreciating currencies, and interest rate hikes have all taken a toll on markets globally as well as the Kuwaiti economy. Despite these challenges, the Kuwait OTC Market had a fruitful year full of significant trading events.

The report highlights the increased investors' confidence and ease of trading on the platform, resulting in an increase in OTC Platform participants to 121 companies, 43 of which are sharia law compliant in 2022. Since its establishment in November 2018, the OTC Platform has seen a 38% growth in the number of Hybrid companies.

Almowazi CEO Muhannad Al-Sane Compared to 2021, the OTC Market's performance had positive growth in terms of value traded, reaching KD 224.6 million, representing a 32% increase from the previous year. In 2022, 4.53 billion shares in 347 unlisted companies were traded in 5,518 deals, with the Holding and Services sectors leading the OTC market trading.

The report indicates a promising outlook for 2023, with increased awareness of the platform and more convenient, transparent trading for investors seeking investment opportunities, funding sources, and exit strategies across multiple sectors. Additionally, the volume of stock trading in unlisted companies is expected to follow the main market's sentiment in terms of pace and trends.

As Kuwaiti businesses continue to confront critical economic challenges, Almowazi's Annual Report serves as an important indication of the OTC Market's robust performance and its critical role in supporting the economy's growth.