Minister of Finance: Government Sukuk Law is a crucial step in developing the sovereign financing system

Minister of Finance Dr. Yaqoob Al-Sayed Yousef Al-Rafai stated that the approval of the Government Sukuk Law constitutes a significant step in developing Kuwait’s sovereign financing framework, by expanding the range of financial instruments available to the state and introducing a Sharia-compliant tool. This enhances the flexibility of managing financing needs, diversifies funding sources, and broadens the investor base both locally and internationally.

He noted that this supports the state’s direction toward developing capital markets and strengthening the efficiency of financial liability management, in line with fiscal sustainability targets and while preserving the state’s strong financial position.

For his part, Feisal Fahad Al-Muzaini, Director of the Public Debt Management Department at the Ministry of Finance, clarified that the law’s key benefits include:

• Greater flexibility in managing the debt portfolio, through diversification of instruments, markets, maturities, and the investor base.

Regarding the law’s importance in the local and international financial context, Al-Muzaini said: “Issuing government sukuk locally will support the development of the domestic debt market and the construction of a sovereign sukuk yield curve across various maturities, thereby enhancing pricing efficiency and providing a benchmark reference for corporate and financial institution issuances. It will also contribute to deepening the secondary market and improving its liquidity levels.”