• AlOsaimi: We extend our sincere appreciation to the CMA and its valuable efforts in approving the legislative and regulatory environment for ETFs

Kuwait City: Boursa Kuwait welcomed the issuance of Capital Markets Authority Resolution 80 of 2026, which approved the comprehensive regulatory and legislative framework for exchange-traded funds (ETFs), including amendments to the Executive Bylaws of Law 7 of 2010. The CMA also approved the related amendments to the Boursa Kuwait Rulebook.

Accordingly, Boursa Kuwait will introduce dedicated provisions governing ETFs into its Rulebook, which represents a significant addition to the Kuwaiti capital market and a pivotal step in advancing the country’s investment environment, diversifying available investment instruments and aligning the market with international best practices.

The launch of ETFs completes the second part of Phase Three of the Market Development Program (MD 3.2), a key milestone in the development of the capital market that focused on modernizing its regulatory and operational infrastructure, enhancing the clearing and settlement framework and broadening the range of available investment products.

MD 3.2 included a series of core initiatives aimed at strengthening the operational and regulatory infrastructure as well as expanding the range of products and services in the Kuwaiti capital market, including the introduction of the Central Counterparty (CCP) framework, cash settlements through local banks and the Central Bank of Kuwait’s KASSIP system; the upgrade of brokerage firms’ operating models to 'Qualified Broker' status, marking a significant step forward in market structure; and the introduction of sub-account numbers under omnibus accounts, which strengthened transparency and oversight. Finally, MD 3.2 saw the launch of bonds and sukuk on April 5, 2026, and culminated in the introduction of ETFs as two of its prominent investment offerings.

The Market Development program reflects the high level of coordination and close integration across the Kuwaiti capital market apparatus, led by the Capital Markets Authority and in collaboration with Boursa Kuwait, Kuwait Clearing Company and other key market participants. Their collective efforts have supported the development of the market’s technical infrastructure and the completion of the necessary testing to ensure market readiness in line with leading international financial markets, further strengthening Kuwait as an attractive financial hub for high-quality investments.

Commenting on the launch of ETFs, Boursa Kuwait’s Chief Executive Officer Mr. Mohammad Saud Al-Osaimi, said:

“We are pleased to announce the completion of all operational and technical preparations required to enable the launch of exchange-traded funds. The comprehensive testing conducted by Boursa Kuwait in collaboration with the capital market apparatus has yielded positive and tangible results, confirming the efficiency and readiness of the trading infrastructure. Boursa Kuwait is now fully prepared to receive listing applications and enable the trading of ETFs, ensuring a strong and stable launch of this instrument in the market.

Boursa Kuwait had a pivotal role in developing and modernizing the Kuwaiti capital market’s technical and operational infrastructure to ensure it can efficiently and effectively accommodate advanced investment instruments and make them accessible to issuers and investors alike.

The exchange takes pride in serving as an active operational partner, translating the Capital Markets Authority’s regulatory and legislative directives into tangible outcomes that support the shared objectives of market development and competitiveness, which are closely aligned with Kuwait’s broader national objectives and directly support Kuwait Vision 2035.

Through its efforts to foster a transparent, diversified, and attractive investment environment, Boursa Kuwait contributes to attracting foreign capital and empowering the private sector as a central driver of the national economy’s growth, playing a key role in Kuwait’s transformation into a leading financial and commercial hub in the region.

Investor confidence remains central to this journey, the Boursa Kuwait CEO emphasized, stating that “the launch of these instruments amid current geopolitical challenges reflects the resilience of the national economy and the depth of confidence in Kuwait’s financial ecosystem. These successive achievements embody a well-established institutional approach to continuous development, aimed at creating an attractive and transparent investment environment that further strengthens the private sector’s role in the national development of the State of Kuwait.”

Al-Osaimi concluded his remarks by expressing his sincere appreciation to the Capital Markets Authority for its efforts in approving the regulatory and legislative framework for the launch of the ETF platform.

He also commended the close cooperation among the capital market apparatus, which has played a significant role in advancing the development of the Kuwaiti capital market and establishing an institutional trading environment governed by the highest standards of efficiency and transparency that meets issuers’ aspirations and provides investors with innovative investment instruments that enhance the market’s competitiveness.

An integrated mechanism covering the full ETF lifecycle

Boursa Kuwait developed a comprehensive operating framework that covers the full lifecycle of ETFs in the Kuwaiti capital market, from listing through to daily trading. The framework regulates the listing of both local and international funds and sets out the ongoing disclosure obligations of fund managers throughout the listing period. Additionally, the exchange has allocated a dedicated trading board for ETFs and structured their trading sessions in a manner that reflects the unique nature of these instruments.

A clear vision and strategic objectives

The comprehensive regulatory amendments reflect the long-term strategy for the development of the Kuwaiti capital market, built around five core pillars aimed at shaping a more sustainable investment future:

  • International alignment: Aligning local laws and regulations with global standards adopted in advanced capital markets
  • Legal certainty: Regulating listing and trading activities through a clear legislative framework that safeguards the rights of all parties and provides a reliable operating environment
  • Enhanced liquidity: Attracting new capital flows through the listing of advanced financial instruments that appeal to a broader investor base
  • Greater transparency: Improving disclosure and transparency standards to strengthen the confidence of local and international investors
  • Diversification of investment instruments: Expanding the range of options available to market participants and reducing reliance on equities as the primary investment instrument, providing greater flexibility for investment portfolios

Empowering investment companies and enhancing regional competitiveness

The improved regulatory framework opens unprecedented opportunities for local and international investment companies to launch and list ETFs on Boursa Kuwait and enables fund managers to access a broader and more diversified investor base while offering a financial instrument that enhances the competitiveness of listed funds locally and in the region.

To ensure the highest standards of protection and efficiency, investment companies seeking to list ETFs must meet a set of regulatory and institutional criteria, including:

  • Benchmark index: Identifying a clear and transparent index that the fund accurately tracks
  • Liquidity enhancement: Appointing a market maker to support the continuity and efficiency of daily trading
  • Operational transparency: Providing regular disclosures on the fund’s components and net asset value

New investment opportunities and added value for investors

The strategic importance of this platform extends to investors in Kuwait’s capital market, providing them with innovative and highly flexible investment opportunities. Because ETFs are traded during regular market sessions, investors can implement entry and exit strategies with greater ease and efficiency. In addition, ETFs offer three key advantages as a complementary investment instrument, including:  

  • Immediate diversification: Investors can gain exposure to a basket of assets or sectors through a single instrument, helping distribute risk more effectively compared to direct investment in individual stocks.
  • Cost efficiency: ETFs typically offer lower management and operating costs than traditional investment funds, enhancing investors’ net returns.
  • Full transparency: ETFs provide a real-time mechanism for disclosing the indicative net asset value on an ongoing basis, enhancing confidence and clarity in investment decision-making.