11/11/2026 03:59 AST
Boursa Kuwait launched its fixed-income market with the inaugural listing of Kuwait Finance House (KFH) sukuk valued at KD 200 million, under the trading symbol KFH T1S3.
The listing introduces a new asset class to Boursa Kuwait, marking a significant milestone in its transition towards a multi-asset market where equities and fixed-income instruments complement one another in serving the needs of the national economy. By providing a regulated platform for bonds and sukuk, the exchange enables institutions to diversify their funding sources and access additional financing options to support their investment and expansion plans. For eligible investors, these instruments offer different rights, profit distribution arrangements and structures, broadening opportunities for portfolio diversification in line with their investment objectives.
The listing received approval from the Capital Markets Authority (CMA) on 5 November 2026, following Boursa Kuwait's recommendation and the fulfilment of applicable requirements governing the listing, trading and disclosure of bonds and sukuk. Issued in May 2026, the KFH sukuk are perpetual Mudaraba instruments compliant with Islamic Sharia principles and qualify as Additional Tier 1 (AT1) capital. They carry an initial profit distribution rate of 5.50 percent per annum, with semi-annual distributions subject to the terms and conditions of the issuance.
The listing now establishes a presence within the regulated capital market, facilitating transactions in the instruments and access to the associated disclosures and information, in accordance with the applicable requirements and the terms of the sukuk.
Al-Kharafi: Capital market to play a key role in Kuwait's economic ambitions
The listing holds strategic significance in positioning the Kuwaiti capital market as an attractive destination for domestic institutions considering debt instrument issuances, while strengthening the country's financial services ecosystem. Beyond expanding the range of listed instruments, a regulated market for bonds and sukuk can stimulate demand for related services, including legal and Sharia advisory services, credit analysis and asset management, creating opportunities to leverage national talent and specialized expertise, while retaining a greater share of the economic value generated by these activities within Kuwait.
Commenting on the significance of the listing, Boursa Kuwait Chairman Bader Nasser Al-Kharafi said: "With the listing of Kuwait Finance House sukuk, Boursa Kuwait introduces a new asset class, reinforcing its pivotal role in the Kuwaiti capital market's transition towards a multi-asset market. This milestone establishes an additional channel connecting capital with investment opportunities, enabling institutions to pursue their financing ambitions and strengthen their competitiveness.
"More importantly, it brings us closer to our vision of a capital market that plays a central role in Kuwait's economic progress, translating the strength of its institutions and the availability of capital into productive investments that generate lasting value for the country."
Elaborating on Boursa Kuwait's strategic priorities, the Boursa Kuwait Chairman added that continued investment in market infrastructure and capabilities reflects a long-term commitment to supporting the financing needs of Kuwait's institutions. "We are building a market that responds to the evolving requirements of businesses, encourages investment in productive sectors and strengthens the private sector's contribution to economic diversification," he said.
"The activation of the fixed-income platform is a tangible step towards that objective. We encourage institutions to take advantage of the opportunities it offers to broaden their funding sources, and we look forward to this inaugural listing establishing a foundation for further issuances that contribute to the depth and sophistication of the market."
Turning to the role of Kuwait Finance House in achieving this milestone, Al-Kharafi said: "On behalf of the Board of Directors and myself, I extend my sincere appreciation to the Chairman of Kuwait Finance House Group, its Board of Directors and executive management for their confidence in Boursa Kuwait and their decision to list these sukuk."
"As one of Kuwait's leading financial institutions, KFH's participation lends particular significance to this inaugural listing. Its decision demonstrates how collaboration between the banking sector and the capital market can translate shared ambitions into concrete achievements that benefit the wider economy." Concluding his remarks, Al-Kharafi emphasized the importance of institutional collaboration, commending the Capital Markets Authority, Kuwait Clearing Company and market participants for their contributions to this milestone.
"The collective efforts of the apparatus have translated market development plans into tangible outcomes for market participants. Building on this cooperation, Boursa Kuwait will continue working closely with relevant stakeholders to strengthen governance, transparency and institutional discipline, reinforcing the confidence of domestic and international investors," he said.
"Our ambition is to further establish Kuwait as a destination for listings and investment, while strengthening the capital market's contribution to economic diversification and enabling institutions to play a greater role in driving the country's long-term growth," Al-Kharafi concluded.
Al-Marzouq: The listing builds on the group's expertise and leadership in the issuance of Sukuk
"The listing and trading of sukuk on Boursa Kuwait marks a historic milestone and an unprecedented development in Kuwait's capital market, and we are proud that KFH sukuk are the first fixed-income instruments to be listed on Boursa Kuwait, a milestone that reaffirms our confidence in the local market and our commitment to contributing to its advancement," said Kuwait Finance House Group Chairman Hamad Abdulmohsen Al-Marzouq.
"The listing builds on the Group's experience and expertise in sukuk issuance and its continued efforts to offer Sharia-compliant capital instruments that address evolving financing and investment needs. We believe that establishing a domestic sukuk market presents an important opportunity to strengthen the relationship between the banking sector and the capital market, enable institutions to diversify their funding sources and reinforce Kuwait's position in Islamic finance."
Al-Marzouq added that Kuwait has a well-established network of institutions and specialized expertise in Islamic finance, which has contributed to the strong presence of Kuwaiti financial institutions in regional and international sukuk markets.
"Listing these instruments locally provides an opportunity to leverage these capabilities in building a market that responds to genuine financing and investment needs," he said.
"We hope our participation will encourage other institutions to consider incorporating sukuk into their financing strategies, while strengthening cooperation between the banking sector and the capital market and enhancing the competitiveness of Kuwait's financial sector."
Al-Marzouq concluded his remarks by expressing his appreciation to Boursa Kuwait, the Capital Markets Authority, Kuwait Clearing Company and all relevant stakeholders for their cooperation in completing the listing requirements.
"KFH Group remains committed to advancing the Islamic finance industry by leveraging its expertise to broaden the role of Sharia-compliant financial instruments in capital markets. Through these efforts, we aim to contribute to the growth and sophistication of the industry while reinforcing Kuwait's position as a leading regional hub for Islamic finance and investment," said Al-Marzouq.
"The listing of sukuk adds a new dimension to Kuwait Finance House's longstanding relationship with the local capital market, dating back to the listing of its shares in 1984. It also brings the Group's expertise in Islamic finance to the local market, contributing to the wider adoption of sukuk and aligning these instruments with the needs of institutions and investors," he added.
Al-Osaimi: Operational efficiency and integrated services to support future listings
The launch of Boursa Kuwait's bonds and Sukuk platform follows a series of regulatory developments in 2026 concerning the listing, trading and disclosure of fixed-income instruments, including amendments to listing requirements and the ongoing obligations of issuers and obligors, alongside corresponding changes to the exchange's rulebook, all of which were approved by the CMA in April. Together, these measures established the framework for accommodating financial instruments with requirements distinct from those of equities.
"The listing of KFH sukuk marks the commencement of operations on our bonds and sukuk platform, culminating in the extensive preparations undertaken in collaboration with our partners across the capital market apparatus," said Boursa Kuwait CEO Mohammad Saud Al-Osaimi.
"Our efforts have focused on adapting trading systems and listing procedures to the requirements of fixed-income instruments, establishing a dedicated trading board and coordinating with Kuwait Clearing Company on clearing and settlement services. We have also worked closely with brokers to facilitate transactions through approved channels. Our responsibility now is to ensure the platform operates efficiently, with integrated services and clear procedures for all market participants," he added.
Addressing the importance of transparency and ongoing disclosure, Al-Osaimi added that reliable information and timely disclosures are fundamental to the operation of this market, particularly given the different profit distribution schedules, redemption terms and other conditions associated with each issuance. "We are committed to making relevant information available through approved channels and supporting issuers and other obligated parties in understanding and meeting their ongoing disclosure requirements. At the same time, we will maintain close coordination with brokers and other market participants to address operational needs, ensure service continuity and provide investors with the information necessary to make informed decisions," he said.
"Our next priority is to facilitate the listing process for institutions considering the platform. This includes engaging directly with prospective issuers, their advisers and issuance managers to clarify documentation, regulatory requirements and procedural arrangements at an early stage," continued Al-Osaimi. Al-Osaimi added that addressing technical requirements ahead of application submissions would streamline the transition from issuance to listing and help institutions fulfill their ongoing obligations.
"Feedback from market participants would inform further improvements to the exchange's services and procedures, strengthening the platform's capacity to accommodate future issuances and facilitate access to Kuwait's fixed-income market," he said. The fixed-income platform enables investors to trade listed bonds and sukuk through licensed brokers, subject to applicable trading and disclosure rules, with prices determined by market supply and demand. By providing a regulated secondary-market venue following issuance, it allows investors to access trading activity and information relating to each instrument.
As the range of listed securities expands and market participation increases, the availability of comparable pricing and trading data could support more informed investment decisions while helping prospective issuers assess opportunities to bring their instruments to market.
Al-Shamlan: Expanding and diversifying Sharia-compliant investment and financing instruments
Commenting on the occasion, Kuwait Finance House Group CEO Khaled Yousef Al-Shamlan said:
"The listing of the first sukuk on Boursa Kuwait reaffirms Kuwait Finance House's pioneering role in expanding and diversifying Sharia-compliant investment and financing instruments. This listing is also aligned with the Group's strategy to enhance capital management efficiency and align its resources with its growth and expansion plans, while maintaining financial strength and compliance with regulatory requirements."
"These efforts support the bank's ability to finance development projects and contribute to economic activity in Kuwait," he added. Al-Shamlan stated that the listing introduces a new asset class for investors alongside equities and real estate investment trusts (REITs), providing greater investment diversification, enhancing liquidity and supporting more effective risk management.
"The listing demonstrates the complementary roles of Kuwait Finance House as an issuer and arranger of Islamic capital instruments, and Boursa Kuwait as a regulated platform for trading, disclosure and market development," he said. "This collaboration enhances the attractiveness of the local market and provides broader opportunities for investors and institutions. It also reaffirms Kuwait Finance House's continued leadership in introducing initiatives that expand the range of innovative Islamic investment products, while supporting the growth of Kuwait's capital market and strengthening the country's position as a regional financial center," he added.
Al-Shamlan concluded: "We appreciate the efforts of all parties involved in arranging and listing this issuance and look forward to continued cooperation with Boursa Kuwait and the wider capital market apparatus in serving sukuk holders." "The successful completion of this initiative underscores the importance of coordination between financial institutions and market service providers, as well as leveraging local expertise to execute issuances that meet financing and investment needs and support sustainable economic development."
Domestic fixed-income platform to support institutional financing and attract new listings
The listing opens a new avenue for companies and financial institutions seeking to diversify their funding sources or access capital instruments suited to their financial requirements. Boursa Kuwait encourages interested institutions to engage with the exchange, listing advisers and issuance managers to understand the requirements of the bonds and sukuk platform and assess how it could support their financing strategies. Preparations include selecting an appropriate instrument structure, identifying target investors and establishing the disclosure and communication arrangements associated with a listing.
The availability of a domestic listing venue gives institutions an additional option when evaluating their issuance strategies, financing timelines and currency requirements. It also allows treasury and finance teams to draw on a local ecosystem of arrangers, brokers and market service providers to support the preparation and ongoing administration of their instruments.
The effectiveness of these arrangements depends on the suitability of each instrument to the issuer's objectives, its ability to meet its obligations and the quality of information provided to investors.
The exchange will continue working to translate this inaugural listing into sustained market activity, attracting issuances from a broader range of institutions and sectors while expanding the capital market's contribution to financing economic growth. This listing establishes an important foundation for these ambitions, combining the initiative of a leading financial institution with market infrastructure capable of supporting future issuances.
By encouraging broader participation, enhancing its services and maintaining investor confidence, Boursa Kuwait aims to strengthen the connection between capital and investment opportunities, enable greater private sector investment and support a more diversified and competitive Kuwaiti economy.
Kuwait Times
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