Kuwait Finance House Rings Listing Bell for First Listed Sukuk

Kuwait Finance House (KFH) announced the ringing of the listing bell and the commencement of trading for the first sukuk listed on the Kuwait Stock Exchange, within the Additional Tier 1 Capital tranche. The issuance has a total value of 200 million Kuwaiti dinars and an annual yield of 5.5%. This historic step aims to diversify 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. It enhances Kuwait’s position as a regional financial hub capable of attracting further investments and providing 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. The decree aims to regulate the issuance of Sharia-compliant financing instruments, diversify funding sources, broaden the investor base, and strengthen public debt and liquidity management.

The announcement was made during the listing bell ceremony and the start of trading at 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 Group; Mohammed Saud Al-Asimi, CEO of Kuwait Stock Exchange Company; Abdullah Suleiman Al-Haddad, CEO of Baitak Capital; and several other officials.

Al-Shamlan stated, “The listing and trading of sukuk on the Kuwait Stock Exchange represents a historic achievement and an unprecedented development in the Kuwaiti capital market. It is a strategic step toward establishing an organized market for trading sukuk, providing investors with an effective mechanism to buy and sell these instruments. This enhances their role as a key tool for boosting liquidity, activity, and increasing investment flows into the market.”

He added that the offered sukuk are mudaraba sukuk within the Additional Tier 1 Capital tranche, marking the first listing in the debt instruments market at the Kuwait Stock Exchange. They offer an annual yield of 5.5%, distributed semi-annually. He noted that this achievement completes the investment ecosystem at the Kuwait Stock Exchange by providing three main asset classes: equities, fixed-income instruments, and traded real estate investment trusts (REITs). This supports the growth of the Kuwaiti capital market and reinforces 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. He expressed 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 by listing the first sukuk on the Kuwait Stock Exchange. This enhances 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 utilize this important financing and investment tool.”

Al-Shamlan pointed out that this achievement confirms KFH’s leadership in developing innovative Islamic investment products. Having been the first to list traded real estate investment trusts (REITs) on the exchange, KFH is now the first to list sukuk in the local market.

He added that this step contributes to expanding the base of Islamic investment products available to investors and enhances Bayan Al Kuwait’s position as one of the leading issuers and arrangers of sukuk in the region, by enabling local trading of sukuk after they were previously concentrated in global markets, thereby opening the door for a broader segment of investors to benefit from this investment instrument.

He clarified that the nominal value of the sukuk is 1,000 Kuwaiti dinars, and the trading unit 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, most notably regular periodic returns and lower volatility compared to equities, making them a suitable option for investors seeking fixed-income instruments compliant with Islamic Shariah principles.

He explained that the strong creditworthiness of Kuwait Finance House 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.