The Kuwaiti government says it is considering new measures to deal with a sharp fall in the Kuwait stock market, the second largest in the Arab world.

The Trade Minister, Abdul Aziz al-Dekheel, said the goverment was considering opening the exchange to foreign investors.

He said the government wanted to allow share-holding companies to play a more active role in investments and issuing transferrable bonds.

Correspondents say that falling oil prices, declining Asian economies, domestic political disputes and new tensions with Iraq have combined to dampen the market.