SHAWWAL 24, 1440 AH THURSDAY, JUNE 27, 2019 28 Pages Max 49º Min 33º 150 Fils Established 1961 ISSUE NO: 17867 The First Daily in the Arabian Gulf www.kuwaittimes.net San Francisco first major US S Korea, Saudi sign $8bn Modi ‘pained’ by lynching; Azam hits century as Pakistan 6 city to ban e-cigarette sales 11 economic cooperation pact 24 Pompeo hails re-election 28 beat N Zealand by 6 wickets Kuwait stocks could receive $5bn inflows after upgrades Bader Al-Kharafi hails Boursa’s promotion to MSCI’s emerging markets index from 2020 By Faten Omar Opinion KUWAIT: Kuwaiti stocks could attract inflows of as much as $5 billion after a Kuwait’s emerging third global index provider upgraded the bourse to an emerging market. Kuwait’s market arrival signals stock exchange, known as Boursa Kuwait, rang the opening bell yesterday after new era of investment MSCI Inc announced the upgrade, to be implemented in 2020, a move that solidifies Kuwait’s new status as a regional hotspot for market growth. MSCI decided to upgrade the market to emerging market status, confirmed Othman Al-Issa, Vice Chairman of Kuwait’s By Bassel Khatoun Capital Market Authority. Issa noted that the upgrade is the first step towards trans- forming Kuwait into an international finan- Board Member and Head of the Executive cial and commercial center. Committee of Boursa Kuwait Bader Al- Minister of Commerce and Industry Acting CEO of Boursa Kuwait Mohammad uwait stands on the cusp of a new era of Minister of Commerce and Industry Kharafi Khaled Al-Roudhan Al-Osaimi investment. Promotion to MSCI Inc’s Khaled Al-Roudhan praised the efforts of KEmerging Market Index (MSCI EM) this CMA and Boursa Kuwait. “Kuwait’s MSCI is the world’s largest index provider, Boursa Kuwait, expressed his happiness reforms through successful privatization week, though contingent still on several market fea- upgrade to emerging market status by whose emerging-market group of indexes with MSCI’s decision to upgrade the and the transfer of its management to the tures being introduced to international institutional MSCI is the most important step to trans- has about $1.8 trillion of assets tied to it. bourse. “The decision of Morgan Stanley private sector, which makes it able to cope investors before November, puts the country in the form Kuwait and attract foreign capital. MSCI expects Kuwait to introduce more Capital International to promote the with the dynamic of continuous develop- ‘crosshairs’ of deep-pocketed global investors and Efforts have resulted in including Kuwait in reforms before the end of 2019, such as Kuwaiti market comes as a culmination of ment witnessed by international financial the roughly $1.8 trillion that tracks the popular the top three global indices,” he said. introducing omnibus accounts that would the efforts of the stock exchange team in markets. Kharafi added that shifting the gauge. The significant liquidity surge that typically Kuwait’s stock market joined the FTSE allow foreign investors to trade while coordination with the Capital Market Kuwaiti bourse from “frontier market” to accompanies MSCI EM promotion also means Russell emerging market index last year remaining anonymous, offering the same Authority and in cooperation with Kuwait “emerging market” status would put it investors in Kuwait stand to benefit from a more and this year will be added to S&P Dow privileges that local investors now have. Clearing Company,” Kharafi said. under the scope of foreign investments in institutionalized and liquid stock market. Jones Indices’ Global Benchmark Indices Bader Al-Kharafi, Board Member and He added that the stock exchange has the near future. Kuwait’s likely MSCI upgrade reflects the hard with an emerging market classification. Head of the Executive Committee of witnessed a qualitative leap and radical Continued on Page 24 work that the country’s Capital Markets Authority (CMA) has undertaken over the past two years to make its stock market more accessible and attrac- not want a war with Iran but warned that if fighting tive to global investors. During this time, it has Kuwait ready for any does break out, it “wouldn’t last very long”, even as made tangible improvements to its clearing, cus- Iran’s president tried to tamp down soaring tensions. Hashem slams ‘birth tody, and settlement services, increased foreign crisis; Trump talks war; Trump also hinted that any conflict would be waged ownership levels (FOL), and eased the process of with air strikes, saying there would be no US boots on setting up investor trading accounts. We remain the ground. His remarks came after Iranian President tourists’; maternity Hassan Rouhani tried to rein in the crisis between the confident that Kuwait can make omnibus account Rouhani conciliatory two arch foes, saying that Iran “never seeks war” with structures and same National Investor Number By B Izzak the United States. charges to be hiked cross trades available in the coming months, as Washington has ratcheted up crippling economic requested by MSCI, to ensure index inclusion takes By A Saleh KUWAIT/WASHINGTON: The National Assembly sanctions on Tehran after the Islamic Republic’s forces effect next year. held a closed debate with the government yesterday shot down an unmanned US drone in the Gulf region KUWAIT: MP Safa Al-Hashem yesterday accused According to MSCI, up to 18 Kuwaiti stocks will over its readiness over regional developments amid ris- last week, following a series of attacks on oil tankers be eligible for MSCI EM, with the inclusion basket expatriates of being the cause for long lines at hospi- ing tensions between the United States and Iran. that Washington blamed on Iran. In an interview on Fox tals and called to send them to hospitals in Farwaniya likely to be concentrated in banks (c 70 percent). Business News, Trump was asked if America is going to Government spokesman and information ministry and Jleeb Al-Shuyoukh, two of Kuwait’s poorest Actual implementation however will not take place go to war with Iran. “Well, I hope we don’t but we’re in undersecretary Tareq Al-Mazrem said government neighborhoods. Hashem made the remarks when she until May 2020. While Kuwait has already been a very strong position if something should happen. agencies presented the state contingency plan in full in was commenting on the response of Health Minister We’re in a very strong position. It wouldn’t last very recognized as an “emerging market” by index the wake of the developments. He said that the govern- Sheikh Dr Basel Al-Sabah to one of her questions on long, I can tell you that. And I’m not talking boots on providers FTSE Russell (FTSE EM) and S&P Dow ment showed that all its agencies including the military overcrowding at maternity hospitals in the country. the ground,” Trump said, a day after he warned that any Continued on Page 24 and security are well prepared to face any eventuality. Continued on Page 24 US President Donald Trump said yesterday he does Continued on Page 24 decided to open a diplomatic mission at the In Muscat, the Palestinian ambassador to Oman to open level of embassy in the State of Palestine,” the Oman said the opening of an embassy in foreign ministry said on Twitter. Ramallah was a “historical decision”. “It is an A delegation from the ministry will travel important and indicative step with profound embassy in to Ramallah, the seat of the Palestinian implications, especially at this time, as the Authority, to take the necessary measures to Palestinian issue passes through a critical West Bank open the embassy, it said. The announcement stage,” Tayseer Farhat told AFP. “This step was cautiously welcomed by a senior represents political and moral support.” MUSCAT/MANAMA: Oman said yesterday Palestinian official. “We think maybe first of Egypt and Jordan are the only Arab coun- that it will open an embassy in the Palestinian all it will help us educate the Omani govern- tries to have established diplomatic ties with territories in support of the Palestinian peo- ment as to the real nature of the occupation the Jewish state. But Oman was the first Gulf ple, in a first for a Gulf Arab state. The and also working with Palestine directly,” state to receive Israeli Prime Minister announcement coincided with a US-led eco- Hanan Ashrawi told journalists. But she Benjamin Netanyahu in October 2018. A US nomic workshop in Bahrain to unveil a Middle warned Oman against using the new embassy ally bordering Saudi Arabia and Yemen, Oman East peace plan which is not expected to rec- as a step towards establishing formal rela- has frequently served as a mediator in the ognize an independent Palestinian state. “In tions with Israel. “If this has a political price Arab world. Elizabeth Dickinson, senior ana- continuation of Oman’s support for the attached then certainly there will be ramifica- lyst with the International Crisis Group think Palestinian people, the Sultanate of Oman has tions,” she said. Continued on Page 24 Pic of drowned migrant, daughter sparks outrage WASHINGTON: A heart-rending photograph of a Salvadoran man and his nearly two-year-old daughter drowned in the Rio Grande River fueled angry denuncia- tions yesterday of the Trump administration’s immigration policies. “Trump is responsible for these deaths,” said Beto O’Rourke, the former Texas congressman who is seeking the 2020 Democratic presidential nomination. “As his administration refuses to follow our laws - pre- venting refugees from presenting themselves for asylum MATAMOROS, Mexico: The bodies of Salvadoran migrant Oscar Martinez Ramirez and at our ports of entry - they cause families to cross his daughter, who drowned while trying to cross the Rio Grande on their way to the between ports, ensuring greater suffering & death,” US, are seen in state of Tamaulipas on June 24, 2019.