"Capital Markets": A Robust Investment Environment for Index Funds

The Capital Markets Authority (CMA) participated, in coordination with the Kuwait Economic Association, in an awareness workshop titled “Exchange-Traded Funds (ETFs),” with representatives from the CMA attending, alongside a number of representatives from listed companies, specialists, and stakeholders interested in capital markets and investment.

This workshop follows the issuance of CMA Decision No. (80) of 2026, which amends certain provisions of the Executive Regulations of Law No. (7) of 2010 and its amendments, concerning Exchange-Traded Funds. The initiative is part of a plan aimed at completing the legislative and regulatory framework for this investment instrument and preparing the necessary environment for its listing and trading in the Kuwaiti market.

The workshop falls within the Authority’s efforts to introduce the regulatory framework for ETFs, raise awareness of their characteristics, operational mechanisms, and regulatory requirements, in line with the Authority’s direction toward market development and diversification of available investment products and tools. It also builds on recent steps taken by the Authority, including the development of current investment controls and the regulation of multi-asset funds, which contribute to enhancing market efficiency, strengthening governance, transparency, and disclosure standards, protecting investors, and supporting the establishment of a robust and sustainable investment environment for funds in the Kuwaiti market.

The workshop was presented by two CMA representatives: Abdulrahman Al-Filikaawi, Director of the Market Regulation Department at the CMA, and Ahmed Al-Khaled, Director of the Collective Investment Systems Regulation Department at the Collective Investment Systems Administration. They outlined the key features of the regulatory framework for ETFs, the nature of these funds, their operational mechanisms, and the requirements and controls governing them.

The workshop highlighted the importance of ETFs within the market development project and the introduction of financial products, and their role in expanding the range of investment tools and options available in the local market. It also reviewed the key benefits these funds can bring to the market and investors, including deepening liquidity, enhancing pricing efficiency, attracting new segments of investors, supporting financial inclusion, and providing diverse investment options with competitive costs.