Kuwait Finance House Rings Bell for Listing and Trading of First Bonds on Kuwait Stock Exchange

Kuwait Finance House announced the listing and commencement of trading of the first sukuk listed on the Kuwait Stock Exchange, under the Additional Tier 1 Capital tranche, with a total value of 200 million Kuwaiti dinars and an annual yield of 5.5%. This historic step aims to diversify the investment tools available to investors and deepen the local capital market by establishing a market for trading sukuk, one of the most important Sharia-compliant fixed-income instruments.

The listing follows approval from the Capital Markets Authority, marking a pivotal milestone in the development of Kuwait’s financial market and reinforcing Kuwait’s position as a regional financial hub capable of attracting further investments and offering diverse investment options for individual and institutional investors. This achievement gains additional significance amid recent legislative developments in Kuwait, including the issuance of Law-Decree No. (90) of 2026 concerning Government Sukuk, which aims to regulate the issuance of Sharia-compliant financing instruments, diversify funding sources, broaden the investor base, and enhance public debt and liquidity management.

The announcement was made during a ceremony marking the listing and commencement of trading of the Sukuk on the Kuwait Stock Exchange, attended by Bader Nasser Al-Kharafi, Chairman of the Board of Directors of the Kuwait Stock Exchange; Khaled Yousef Al-Shamlan, CEO of Kuwait Finance House; Mohammed Saud Al-Asimi, CEO of Kuwait Stock Exchange Company; Abdullah Suleiman Al-Haddad, CEO of BTK Capital; and several other officials.

Khaled Yousef Al-Shamlan, CEO of Kuwait Finance House, stated: “The listing and trading of Sukuk on the Kuwait Stock Exchange represents a historic achievement and an unprecedented development in Kuwait’s capital market, and a strategic step toward establishing an organized market for Sukuk trading. This provides investors with an effective mechanism to buy and sell these instruments, enhancing their role as a key tool for boosting liquidity, activity, and increasing investment inflows into the market.”

He added that the offered Sukuk are Mudaraba Sukuk within the first additional tranche of capital, marking the first listing in the debt instruments market on the Kuwait Stock Exchange, with an annual yield of 5.5% distributed semi-annually. He noted that this achievement completes the investment ecosystem on the Kuwait Stock Exchange by providing three main asset classes: equities, fixed-income instruments, and traded Real Estate Investment Trusts (REITs), thereby supporting the growth of Kuwait’s capital market and reinforcing Kuwait’s status as a regional financial center.

Al-Shamlan emphasized that Kuwait Finance House continues its pioneering role in developing the Islamic finance industry and innovating investment products that meet the needs of various investor segments, expressing his appreciation to the Central Bank of Kuwait, the Capital Markets Authority, the Kuwait Stock Exchange, and the Central Depository Company for their support and cooperation in completing this landmark project.

He said: “Just as Kuwait Finance House was a pioneer in launching many innovative financial initiatives and products, it continues to lead this transformation today through the listing of the first Sukuk on the Kuwait Stock Exchange, thereby enhancing the private sector’s contribution to supporting economic development and developing the local capital market. We hope this step will serve as an incentive for other institutions and banks to leverage this important financing and investment tool.”

He added that the listing of Sukuk allows investors to add a new asset class to their portfolios, enhances investment diversification, supports liquidity levels, and provides more efficient tools for risk management.

Al-Shamlan pointed out that this achievement confirms Kuwait Finance House’s leadership in developing innovative Islamic investment products, having previously been the first to list traded Real Estate Investment Trusts (REITs) on the exchange, and now becoming the first to list Sukuk in the local market. He added that this step contributes to expanding the range of Islamic investment products available to investors and strengthens Kuwait Finance House’s position as one of the leading issuers and payers of Sukuk in the region, by enabling local trading of Sukuk, which were previously concentrated in global markets, thereby opening opportunities for a broader segment

It is broader than investors’ ability to benefit from this investment tool. Al-Shamlan clarified that the nominal value of the sukuk is 1,000 Kuwaiti dinars, as is the trading unit, which is also 1,000 dinars and its multiples, with the possibility of early redemption in accordance with the issuance terms. He noted that profits will be distributed semi-annually starting from the date of official listing and trading. He emphasized that the sukuk offer investors multiple advantages, the most prominent being regular periodic returns and lower volatility compared to equities, making them a suitable option for investors seeking fixed-income instruments compliant with Islamic Sharia principles. He further explained that Kuwait Finance House’s strong creditworthiness enhances the attractiveness of this issuance, as the bank holds an A2 (stable) rating from Moody’s and an A (stable) rating from Fitch, reflecting the solidity of its financial position and its ability to meet its obligations, thereby boosting investor confidence in this new investment instrument.