Manakh launches Kuwait’s First Sustainability Index, Jazeera Airways leads consumer goods sector

In a significant milestone for the Kuwaiti financial market, Manakh Studies and Research Company has officially launched the first Sustainability Index in Kuwait, designed to evaluate the performance of listed companies on the Kuwait Stock Exchange based on Environmental, Social, and Governance (ESG) standards. This initiative marks a foundational step toward promoting sustainable practices and aligning local markets with global trends in responsible and ethical business conduct.

The index aims to encourage transparency, innovation, and long-term value creation by assessing companies’ adherence to ESG criteria, positioning sustainability not only as a corporate responsibility but also as a strategic investment opportunity, reports Al-Rai daily.

In its 2023 results, Jazeera Airways ranked first in the Consumer Goods Sector, underscoring its leadership in implementing ESG-aligned strategies within its operations.

In a press statement, Manakh emphasized that the launch of the Sustainability Index supports the global shift toward a green, inclusive economy and aligns with Kuwait Vision 2035, which views sustainability as a core element in corporate strategic planning. The company highlighted that international markets increasingly perceive sustainability as a driver of innovation and competitiveness, shifting from a moral imperative to a value-generating asset.

In support of this initiative, the Capital Markets Authority (CMA) recently issued a circular mandating all companies listed on the Premier Market to disclose annual sustainability reports, beginning with voluntary submissions for 2025 and becoming mandatory starting 2026. This move aims to promote transparency, fairness, and global best practices in the Kuwaiti capital markets.

A growing number of Kuwaiti companies are integrating sustainability into their core business models, addressing key global challenges such as resource efficiency, climate change, greenhouse gas reduction, and social equity. The rising awareness among investors and consumers has significantly boosted demand for sustainability-focused disclosures and performance metrics.

Manakh revealed that its Sustainability Climate Index utilizes artificial intelligence to analyze company reports and deliver a comprehensive, accurate evaluation of ESG performance.

The methodology is based on a mix of primary and secondary international standards, with sector-specific weights assigned to reflect unique challenges and risks. Companies are ranked across 12 rating tiers, ranging from AAA+ to D.

The 2023 index demonstrated widespread compliance with basic sustainability standards among companies listed on the Kuwait Stock Exchange.

Highlights include:

• Banking Sector — National Bank of Kuwait (NBK) – 79.60 points (A+ rating)
• Telecommunications — Zain – 78.90 points (A+ rating); Zain also led the Environmental Performance metric with 87.5 points
• Financial Services — Kuwait Stock Exchange (Boursa Kuwait) – 81.90 points (AA rating)
• Real Estate — Mabanee Company – 77.70 points (A+ rating)
• Industrial Sector — Agility – 83.25 points (AA rating), the highest score across all sectors
• Consumer Goods — Jazeera Airways – 72.63 points (A rating)

On Social Impact, NBK, Agility, and Boursa Kuwait scored 83 points, showcasing strong commitment to community engagement and social responsibility. For Governance, Kuwait Finance House achieved the highest score at 84 points, reflecting robust governance systems and institutional transparency.

These results affirm the growing ability of Kuwaiti companies to embed sustainability within their operational and strategic frameworks.

Manakh’s Sustainability Index not only offers a transparent benchmarking tool but also serves as a catalyst for broader adoption of ESG principles in the Kuwaiti business landscape. It represents a major step forward in aligning Kuwait’s capital market with international sustainability standards and enhancing its global competitiveness.