Nasdaq OMX has beaten off competition from Deutsche Börse to win a contract with the Kuwait Stock Exchange (KSE) for the provision of a new electronic trading platform.
The deal is expected to be formally sealed within two months and Wafa al-Rasheed, director, technical bureau department, KSE, has told Reuters the platform will be rolled out within 13 months.
Nasdaq OMX technology will provide a platform for derivatives trading and allow electronic surveillance as the exchange looks to improve transparency.
The Kuwait bourse moved to install a new platform after a commissioned review of its performance by US consultancy McKinsey & Co last year, which called for an overhaul of trading and administration systems.
At the time Deutsche Börse and Nyse Euronext were both believed to be in the running for the contract. Kuwait's minister of trade and industry, Ahmad al-Haroun, now says the exchange rejected an offer from Deutsche Börse.
Moves to revamp the state owned exchange comes as Kuwait seeks to follow the lead of other Middle East countries and reduce its economic dependence on oil.
On Friday the newly formed Qatar Exchange agreed to sell a 20% stake to Nyse Euronext for $200 million in a deal that will also see the transatlantic bourse provide the new venture's technology platform.
Meanwhile the Dubai International Financial Exchange went live with a platform supplied by Nasdaq OMX last year. Nasdaq OMX also holds a 33% stake in the DIFX.