Kuwait City – Boursa Kuwait welcomed the Capital Markets Authority (CMA)’s approval of its proposed rule amendments, alongside the issuance of Resolution No. 38 of 2026 establishing a comprehensive regulatory and legislative framework for bonds and sukuk. The move also includes amendments to the Executive Bylaws of Law No. 7 of 2010.

Boursa Kuwait also issued Resolution No. 1 of 2026, amending its rulebook to incorporate provisions specific to bonds and sukuk. Together, these measures represent a significant addition to the Kuwaiti capital market and constitute a pivotal step toward developing its investment environment and diversifying its instruments in line with international best practices.

“We are pleased to announce the completion of full operational and technical readiness for this phase, as system tests conducted by Boursa Kuwait and the capital market apparatus have delivered successful results, confirming the trading infrastructure’s readiness,” said Boursa Kuwait Chief Executive Officer Mr. Mohammad Saud Al-Osaimi.

“Boursa Kuwait is now fully equipped to receive listing applications and operate the bonds and sukuk trading platform, with instruments to be listed upon meeting the applicable regulatory requirements,” he added.

Al-Osaimi also noted that investor confidence in Kuwait’s capital market is a trust the exchange is committed to upholding, adding, “What sets this phase apart is the introduction of new investment instruments at a time when the region is facing exceptional geopolitical challenges. This reflects the depth of investor confidence in the national economy of Kuwait and its capital market, underscoring the apparatus’s commitment to continued development despite these conditions.”

“We would also like to reassure all market participants that trading systems are operating at full efficiency, and that Boursa Kuwait is distinguished by a robust operational infrastructure that provides investors with the tools and environment needed to manage their portfolios with confidence,” he said.

An integrated legislative framework covering the full cycle of the platform

Resolution 38 establishes a comprehensive regulatory framework that covers the full lifecycle of bonds and sukuk in the Kuwaiti capital market, from listing and daily trading through to early redemption or maturity.

The new framework governs the listing of both domestic and foreign issuances, sets out ongoing obligations for issuers and obligors throughout the listing period and clearly defines procedures for delisting and withdrawal, including mechanisms for the treatment of these instruments in relation to their exclusion from market indices.

Boursa Kuwait also completed an integrated suite of operational and technical measures, including the introduction of a dedicated trading board for bonds and sukuk that is separate from equities. Trading sessions and price limits were structured to reflect the distinct nature of these instruments, differing from conventional equity trading mechanisms.

In addition, the market framework establishes clear continuous disclosure requirements, outlining issuers’ obligations when disclosing financial statements and material developments, alongside provisions regulating negotiated trades and the introduction of tailored operational rules that take into account the unique characteristics of these instruments.

A clear vision with strategic goals

The comprehensive regulatory amendments included in the resolution align with five clear strategic objectives that reflect the long-term direction for the development of the Kuwaiti capital market. These include aligning the Kuwaiti capital market’s regulatory framework with the standards recognized in global capital markets, establishing a clear and structured approach to listing and trading that provides legal certainty for all stakeholders as well as enhancing market liquidity through the introduction of a new class of tradable instruments.

The amendments also aim to strengthen disclosure standards and transparency in a manner that serves investors’ interests and reinforces their confidence, while supporting greater diversification of investment instruments in the Kuwaiti market, reducing reliance on equities as the primary investment vehicle.

A real opportunity for issuers

For the first time ever, Kuwaiti and foreign companies can finance their operations and projects through the issuance of listed bonds or sukuk on Boursa Kuwait, benefitting from clear and viable financing advantages. The instruments allow issuers to secure funding at competitive costs compared to traditional bank borrowing and access a broader and more diversified investor base beyond conventional lenders.

The new regulatory framework also requires companies seeking listing to meet a set of conditions designed to safeguard investor interests. These include obtaining a credit rating from a recognized rating agency, adhering to a minimum issuance value of no less than KD 100,000 or its equivalent in foreign currencies, ensuring free tradability without restrictions and establishing a body to represent bond or sukuk holders and protect their interests. Additionally, sukuk issuances must comply with the principles and rules of Islamic Sharia.

A new investment opportunity

The significance of this platform extends to investors in Kuwait’s capital market, offering new investment opportunities that were not previously available at this level of regulation and transparency. As listed and tradable instruments on the exchange, bonds and sukuk provide a structured investment option that enhances market efficiency and keeps pace with its development.

These instruments also offer investors a steady and predictable stream of income, distinct from the more volatile returns associated with equities. They typically carry comparatively lower risk, particularly in the case of highly rated bonds and sukuk, while enabling greater portfolio diversification and a more balanced distribution of risk.

A well-established institutional partnership

Boursa Kuwait commends the regulatory efforts undertaken by the CMA in developing this integrated legislative framework and delivering it to a high professional standard. The exchange also affirms its continued coordination and alignment with the Authority in its capacity as the legislative and supervisory body overseeing Kuwait’s securities sector.

Boursa Kuwait views this relationship as a model of effective institutional integration between a regulator that sets and oversees the framework and an operator that implements and advances it, an approach adopted by leading capital markets worldwide.

The exchange further reiterates its commitment to continuously enhancing its infrastructure and technical systems to ensure the delivery of trading services at the highest levels of efficiency and reliability across all asset classes, enhancing Kuwait's position as a leading financial and investment center in the region and across the globe, a vital contributor to the economic diversification goals to which the State of Kuwait aspires.

About Boursa Kuwait:

The establishment of Boursa Kuwait in 2014 marked the first step in the privatization project of the Kuwait Stock Exchange, which was founded in 1977 as the first exchange in the Gulf Cooperation Council region and was reorganized in 1983 as an independent financial institution. The transitional phase began in 2016, with Boursa Kuwait officially assuming the responsibilities and operations of the Kuwait Stock Exchange, replacing it with an official license in the same year after the successful completion of the transitional phase. This ensured that Boursa Kuwait developed the infrastructure and operated according to best practices and international standards. It commenced the creation of an advanced, reliable trading platform built on efficiency, credibility, and transparency to serve all asset classes with a focus on the interests of traders and the national economy.

Boursa Kuwait has undertaken various market reforms as part of its comprehensive plans to enhance it in several stages. It succeeded in introducing innovative investment tools, enhancing transparency, and restructuring the market to increase its liquidity and competitiveness, based on its mission-focused strategy, which emphasizes developing the market to meet international standards. The company's developmental and improvement efforts have also contributed to the reclassification of the Kuwait market as an «emerging market» among key global index providers, enhancing Kuwait's position as a leading regional financial center.

In a pioneering step in Kuwait's privatization field, the privatization of Boursa Kuwait was successful, conducted in two stages. The first stage was in February 2019 when a consortium of Kuwaiti investment companies and a global exchange operator won the privatization bid, acquiring a 44% stake in the company.

In December 2019, the privatization process was completed through the public offering of a 50% stake owned by the Capital Markets Authority to Kuwaiti citizens, with the offering oversubscribed by more than 850%. Boursa Kuwait is listed on the «Premier Market» under the name «Boursa».

For further information, please contact:
Ahmad Rashed Alowaish
PR and Media Manager - Boursa Kuwait
Email: aalowaish@boursakuwait.com.kw