The Kuwait Capital Markets Authority issued a Disciplinary Board decision imposing a KD 10,000 financial penalty on Kuwait Business City Real Estate Company for breaching the Corporate Governance Rules in the Executive Bylaws of Law No. 7 of 2010 and its amendments. The breach concerned clause 5 of article 6-3 of Module Fifteen (Corporate Governance), which requires an independent risk management unit to review proposed related-party transactions and make recommendations to the board. Following a review of the company’s financial statements for the year ended 31/12/2024, the authority found the company entered into a related-party transaction to sell bank-issued bonds valued at KD 2,166,443 without obtaining a recommendation from its risk department. The sanction was imposed under Disciplinary Board Resolution No. 29/2025 (Authority No. 62/2025).
Kuwait Capital Markets Authority 2025-10-13
Kuwait Capital Markets Authority fines Kuwait Business City Real Estate Company KD 10,000 for corporate governance breach in related-party bond sale
The Kuwait Capital Markets Authority imposed a KD 10,000 penalty on Kuwait Business City Real Estate Company for breaching Corporate Governance Rules. The company failed to have its independent risk management unit review a related-party transaction involving the sale of bank-issued bonds valued at KD 2,166,443. The sanction was issued under Disciplinary Board Resolution No. 29/2025.