Kuwait Stock Exchange Reports 20.83 Million Dinars Net Profit in First Nine Months

The Kuwait Stock Exchange announced its financial results for the nine months ended September 30, 2026, following a meeting of its Board of Directors held on Thursday, October 29, 2026. The company reported a net profit attributable to shareholders of the parent company of 20.83 million Kuwaiti dinars, while total operating revenues reached 35.90 million dinars, and operating profit amounted to 25.76 million dinars. Earnings per share stood at 103.76 fils.

Compared to the same period in the previous year, net profit attributable to shareholders of the parent company declined by 9.63%, while operating revenues fell by 3.12% and operating profit decreased by 9.17%. On the financial position front, total group assets rose by 1.48% to approximately 134.94 million dinars, while equity attributable to shareholders of the parent company grew by 0.62% to reach 74.60 million dinars by the end of the period.

The Kuwait Stock Exchange continued to implement its strategic priorities to develop the market and maintain operational efficiency, in collaboration with the Capital Markets Authority, the Kuwait Clearing Company, and other stakeholders in the capital market ecosystem. This was achieved amid a regional environment characterized by ongoing geopolitical challenges, which intensified during the third quarter of 2026 and impacted the economic and investment landscape as well as investor sentiment.

These circumstances highlighted the importance of institutional readiness and operational flexibility in ensuring continuous trading, particularly during periods of volatility and heightened uncertainty. The Exchange relied on the robustness of its business model, the diversification of its revenue streams, and its prudent risk management approach to navigate these developments, thereby enhancing its ability to adapt to changes and continue implementing its development initiatives.

This approach reflects the Kuwait Stock Exchange’s commitment to balancing operational stability requirements with long-term objectives, building on reforms and investments implemented in recent years to strengthen the market’s capacity and competitiveness, and expanding the benefits for participants from the infrastructure and products developed in previous phases of the market development program.

Commenting on the financial results and the company’s strategic direction, Bader Nasser Al-Kharafi, Chairman of the Board of Directors of the Kuwait Stock Exchange, stated: “The region faced ongoing geopolitical challenges during the first nine months of the year, with their effects extending to the economic and investment landscape and investor decisions. Amid these circumstances, the Kuwait Stock Exchange has demonstrated its resilience and ability to withstand and adapt, relying on a solid regulatory framework and an institutional and operational structure that has evolved through years of reform. This experience underscores the importance of investments directed toward building a resilient market capable of handling changes and continuing to serve the national economy.”

Al-Kharafi added: “We are confident in the fundamentals of the Kuwaiti capital market and its ability to continue developing. We place paramount importance on maintaining the confidence of local and international investors in our strategic direction. This confidence is reinforced by the integrated roles of the market ecosystem under the leadership of the Capital Markets Authority, as well as our commitment to governance, disclosure, and service quality. Our responsibility lies in building on these strengths and maintaining an investment environment characterized by clarity and fairness, enabling participants to assess opportunities and risks and make decisions based on reliable information.”

He emphasized that addressing changes requires maintaining a long-term vision, while closely monitoring performance and risks and carefully prioritizing investments. He noted that the Kuwait Stock Exchange continues to work on enhancing the sustainability of its business model and diversifying its activities, thereby supporting its ability to create value for shareholders and capitalize on growth opportunities offered by market development. He stated, “We strive to combine financial discipline and strategic investment in market development, directing the company’s resources toward priorities that support its competitiveness and growth potential.

The progress toward a multi-asset market represents a crucial path to expanding investor options and meeting the financing needs of companies, thereby strengthening the role of the capital market in linking capital with productive opportunities, and supporting the growth of the private sector and the diversification of the national economy, in alignment with the objectives of Kuwait Vision 2035.”

Al-Kharafi stressed that the Board of Directors places great importance on monitoring the economic impact of development projects and supporting the executive management in translating adopted strategies into services that meet the needs of market participants. This approach is based on balancing shareholders’ interests with market development requirements, and adhering to the regulatory and institutional frameworks governing the company’s operations. It also reflects the Kuwait Stock Exchange’s commitment to integrating its role in operating the market, developing its infrastructure, and enhancing its attractiveness to investments, alongside its dedication to elevating practices related to transparency, disclosure, and sustainability.

Concluding his statement, the Chairman said, “On behalf of the Board of Directors, I extend my gratitude to our shareholders for their trust, and to the executive management and company employees for their efforts and commitment. I also appreciate the role of the Capital Markets Authority and the cooperation with the Kuwait Clearing Company, as well as all our partners in the market ecosystem, and the contribution of investors, issuers, and brokers in continuing to develop the Kuwaiti capital market.”

Trading Activity:

Total stock trading value during the first nine months of the year reached KD 15.64 billion, compared to approximately KD 19.35 billion in the same period of 2025, representing a decline of 19.17%. Trading volume amounted to 59.86 billion shares, down by 28.93% year-on-year. The average daily trading value reached KD 86.42 million, compared to KD 106.91 million in the corresponding period of the previous year. The total market capitalization stood at approximately KD 52.58 billion by the end of September, showing a slight decrease of 0.05%, remaining close to its level at the end of the same period last year.

The “First” market recorded a 3.25% increase in the number of trades, reaching 1.85 million transactions, while its market capitalization rose by 0.60% to KD 43.42 billion. Trading value in this segment reached KD 9.91 billion, a decrease of 9.58%. These indicators reflect divergent performance trends between the number of transactions, their value, and stock price movements, necessitating a combined analysis to assess market activity.

In the “Main” market, trading value amounted to KD 5.73 billion. Investors traded 34.26 billion shares across 2.12 million transactions, with its market capitalization reaching KD 9.17 billion.

Market maker data also showed a 32.17% growth in the value of incentivized market maker trades, excluding real estate investment trusts (REITs), reaching KD 4.80 billion. This activity is significant for providing buy and sell quotes that support trade execution options, while liquidity quality remains linked to the depth of trading orders, bid-ask spreads, and the continuity of their availability.

The share of institutional investors in trading activity rose to 70.08% during the first nine months, compared to 63.94% in the same period last year, an increase of 6.14 percentage points. Meanwhile, individual investors’ share stood at 29.92%.

In terms of geographic distribution, the share of international investors, including those from Gulf Cooperation Council (GCC) countries, accounted for 17.28% of total trading value, up from 13.97% in the corresponding period, representing a rise of 3.31 percentage points. Local investors’ share reached 82.72%. These figures indicate a widening relative share for institutions and international investors in trading activities, while local participation remains important for market activity.

Operational Requirements

Commenting on the performance of the Kuwaiti money market during the first nine months of 2026, Mohammed Saud Al-Asimi, CEO of the Kuwait Stock Exchange, stated: “The Kuwait Stock Exchange focuses its executive work on meeting the needs of various participant groups through service efficiency, procedural clarity, and maintaining system readiness.

“We continue to address operational requirements in coordination with our partners, facilitating investors’ access to the market and enabling issuers and brokers to benefit from its services.” Regarding communication with investment institutions, Al-Asimi added: “Engaging with investment institutions and asset managers is a fundamental part of our efforts to broaden the participant base.

“We also strive to listen to their requirements regarding services, information, and market access procedures, alongside promoting available opportunities in the Kuwaiti market. These discussions help us identify areas for improvement and follow up with relevant authorities, while allowing listed companies to communicate directly with investors and explain their business models and strategies.”

Within this framework, the exchange continued to bring together local and international investment institutions and specialists in professional meetings during the third quarter. These included hosting the MSCI Forum for Institutional Investors and organizing a specialized seminar on exchange-traded funds (ETFs) in collaboration with the CFA Institute.

These meetings focused on developments and practical needs related to investment, asset management, and utilizing market products. The Kuwait Stock Exchange continues to build on reforms implemented with the launch of Part Two of Phase Three of the Market Development Program in July 2025. These reforms included the implementation of a central counterparty system, the development of cash settlement mechanisms, and upgrading the business model of brokerage firms to the “qualified broker” category, thereby supporting the integration of trading, clearing, and settlement processes among stakeholders’ roles. Continuing this path, 2026 saw the development of a bond and sukuk trading platform and an ETF system.

These frameworks expand financing and investment options, as fixed-income instruments provide an additional channel for issuers and investors, while ETFs enable investment in a diversified portfolio of assets through a single listed product.

Clarity regarding the characteristics, risks, and handling mechanisms of each instrument remains essential to enable participants to use them in accordance with their needs. In this context, the exchange organized workshops and held direct meetings with potential issuers and relevant stakeholders in the capital market ecosystem to clarify the features of the products, as well as the requirements for their issuance, listing, trading, and associated obligations. This supports stakeholders in evaluating suitable options for their financing and investment plans and in identifying the requirements for leveraging these instruments.