Boursa Kuwait has received approval to begin listing bonds and sukuk, marking a significant milestone in the evolution of Kuwait’s capital markets. Based in the Sharq area of Kuwait City, the exchange is now set to introduce a dedicated platform for trading these fixed-income instruments.
The approval follows the introduction of a new regulatory and legislative framework by the Capital Markets Authority (CMA), which governs the full lifecycle of bonds and sukuk. The framework covers issuance, listing, trading, maturity, and early redemption, while also outlining issuer obligations and procedures for delisting or withdrawal.
CEO Mohammad Saud Al-Osaimi stated that Boursa Kuwait is fully prepared to receive listing applications and operate the bonds and sukuk trading platform. He added that instruments will only be listed once they meet all required regulatory conditions, ensuring transparency and investor protection.
Despite ongoing geopolitical tensions, including the impact of the US-Israeli war with Iran, the exchange has reassured investors that its trading systems are operating at full efficiency and that the market remains stable.
CMA Resolution 38 provides a comprehensive structure for both domestic and foreign bonds and sukuk within Kuwait’s capital market. It also establishes separate trading sessions and price limits for these instruments, distinguishing them from equities, although further details have yet to be disclosed.
According to Boursa Kuwait, the introduction of bonds and sukuk listings will offer Kuwaiti and international issuers an alternative route to raise capital. This is expected to provide more competitive funding options compared to traditional bank borrowing, while also enabling access to a broader investor base.
To qualify for listing, companies must meet specific requirements, including obtaining a credit rating and issuing bonds or sukuk with a minimum value of KD100,000 (approximately $323,000) or its equivalent in foreign currency. These measures are intended to maintain market integrity and protect the interests of investors.