Souk Al-Manakh: Worst financial crisis in Kuwait

Souk Al-Manakh: Worst financial crisis in Kuwait

By Fares Al-Shammari

KUWAIT: Fawaz, a 22-year-old, speaking to Kuwait Times, acknowledged he had always heard the name ‘Souk Al-Manakh’, but admitted to not knowing much about it. Fawaz candidly stated the importance of studying historical events and learning from past mistakes to avoid their repetition. The collapse of Souk Al-Manakh is a significantly underexplored chapter in Kuwait’s history, offering valuable lessons. For many people today, it may be hard to imagine that Kuwait once had the third-largest stock exchange in the world.

In fact, more trading activity took place in Souk Al-Manakh than in the London markets with all of their foreign listings combined. To provide context, Kuwait’s economy thrived after a substantial increase in oil prices during the 1970s, resulting in increased wealth for Kuwaitis. The newly established stock exchange was one of the few avenues for investment. However, it was tightly regulated, with limited companies available for investment. This combination of newfound wealth and limited investment opportunities laid the foundation for one of the most significant financial crises, not only in Kuwait but globally.

Trading commenced in Souk Al-Manakh in 1978, within an air-conditioned parking garage. Interestingly, this location had previously served as a marketplace for resting camels. The term