Kuwait Bourse Activates Fixed Income Market with Listing of Kuwait Finance House Sukuk

Kuwait Bourse activated its fixed-income market by listing Kuwait Finance House’s sukuk worth 200 million Kuwaiti dinars, under the short name “KFH Tier 1 Tranche 3,” in the first listing on the fixed-income platform, “Bonds and Sukuk.”

This achievement introduces a new asset class to the exchange and reinforces its role as an operator and developer of the Kuwaiti capital market by providing a market infrastructure that enables institutions to list their financing and capital instruments and connects them with investors seeking opportunities.

The listing also represents a practical step in Kuwait Bourse’s strategy to transform into a multi-asset market, where equities and fixed-income instruments work together to serve the needs of the national economy. This will help the exchange enhance institutions’ ability to diversify funding sources and provide broader options to support their investment and expansion plans. It also offers investors instruments with varying rights, distributions, and structures, thereby strengthening their ability to diversify investment portfolios and choose tools that align with their investment strategies.

The listing follows approval by the Capital Markets Authority on November 5, 2026, based on Kuwait Bourse’s recommendation and after meeting the regulatory requirements for the listing, trading, and disclosure of bonds and sukuk, in accordance with approved supervisory and operational frameworks.

Kuwait Finance House’s sukuk fall under the additional first tier of capital. They are perpetual profit-sharing sukuk compliant with Islamic Sharia principles, with an initial profit distribution rate of 5.50% annually, and semi-annual distributions according to the issuance terms.

The issuance was completed in May 2026, while today’s listing establishes a presence in an organized local market that enables trading in sukuk and tracking of related disclosure information, in accordance with approved regulations and the instrument’s characteristics.

This listing holds strategic importance in enhancing the attractiveness of the local market for Kuwaiti institutions when planning to issue debt instruments, and in strengthening the presence of related financial services within Kuwait. The existence of a bonds and sukuk market supports and develops activities associated with their issuance, such as legal and Sharia advisory services, credit analysis, and asset management. This allows for the utilization of national expertise and specialized skills, and helps retain a larger share of the added value from these activities within the local market.

On this occasion, Mr. Bader Nasser Al-Kharafi, Chairman of the Board of Directors of Kuwait Bourse Company, stated: “With the listing of Kuwait Finance House’s sukuk, Kuwait Bourse activates a new asset class in the Kuwaiti capital market and consolidates the exchange’s role in leading the transition to a multi-asset market. This achievement establishes a new pathway that links capital with investment opportunities and enables institutions to finance their ambitions and enhance their competitiveness. Consequently, the capital market becomes an active partner in the growth of the national economy, and the strength and capabilities of its institutions are transformed into investments that support production and create sustainable value for Kuwait.”

Al-Kharafi added: “Kuwait Bourse invests in developing the capital market to enhance the economy’s growth capacity and enable institutions to access funding tools that support their projects and investment plans. Our strategy is based on building a market that meets business needs and stimulates the deployment of capital into productive investments, thereby enhancing the private sector’s contribution to economic diversification. With the activation of the fixed-income platform, we invite institutions to leverage this tool to diversify their funding sources, and we look forward to this listing marking the beginning of a continuous path of high-quality issuances that deepen the market and support economic development.”

Al-Kharafi continued: “On my own behalf and on behalf of the Board of Directors, I extend my sincere gratitude and appreciation to the Chairman of the Board of Directors of Kuwait Finance House (KFH) Group, as well as to the Board members and the executive management, for their trust in the Kuwait Stock Exchange and their choice to list these sukuk. We are proud of the initiative taken by a leading national institution of KFH’s stature to participate in the launch of this market, which reflects confidence in its capabilities and a commitment to its development. This partnership will provide significant momentum to the launch and serve as a model of integration between the banking sector and the capital market in the service of development.”

Al-Kharafi concluded: “We value the role of the Capital Markets Authority, the Kuwait Clearing Company, and all our partners in fulfilling the requirements of this stage. The integration of efforts has translated development plans into reality that serves market participants. We will continue to work, engage in constructive coordination, and cooperate with relevant parties, while reinforcing governance, transparency, and institutional discipline to enhance the confidence of local and international investors. We aspire for Kuwait to advance its position as a destination for listing and investment, and to strengthen the contribution of the capital market to economic diversification and to enabling institutions to lead long-term growth.”

For his part, the Chairman of the Board of Directors of Kuwait Finance House (KFH) Group, Mr. Hamad Abdulmohsin Al-Marzouq, said: “The listing and trading of sukuk in the Kuwait Stock Exchange represent a historic achievement and an unprecedented development in the Kuwaiti capital market. We are proud that KFH sukuk are the first fixed-income instruments listed on the Kuwait Stock Exchange, a step that confirms our confidence in the national market and our commitment to contributing to its development. This listing extends the Group’s expertise and leadership in issuing sukuk, and its dedication to developing Sharia-compliant capital instruments that meet financing and investment needs. We view the development of a local sukuk market as an opportunity to enhance integration between the banking sector and the capital market, enable institutions to diversify their funding sources, and consolidate Kuwait’s position in Islamic finance.”

Al-Marzouq added: “Kuwait has a solid base of institutions and specialized expertise in Islamic finance, which has contributed to strengthening the presence of Kuwaiti financial institutions in regional and global sukuk markets. The local listing of these instruments allows for the utilization of this expertise in building a market that responds to the actual needs of financing and investment. We look forward to our participation encouraging institutions to study the use of sukuk within their plans, and to enhancing integration between the banking sector and the capital market, thereby supporting the competitiveness of the Kuwaiti financial sector.”

Al-Marzouq concluded: “We appreciate the cooperation of the Kuwait Stock Exchange, the Capital Markets Authority, the Kuwait Clearing Company, and relevant parties in completing listing requirements. We reaffirm the Group’s commitment to continuing to contribute to initiatives that develop the Islamic finance industry and support Kuwait’s position and expertise in this field.”

He also added: “The listing of sukuk adds a new dimension to the relationship between Kuwait Finance House and the local capital market, which has been ongoing since the listing of its shares in 1984. It also places the Group’s expertise in Islamic finance within a local experience that contributes to developing the use of sukuk and linking them to the needs of institutions and investors.”

The activation of the Bonds and Sukuk platform is based on the developments witnessed in the listing frameworks for these instruments, their trading, and disclosure during 2026. These developments included amendments approved by the Capital Markets Authority in April regarding provisions related to listing and ongoing obligations for issuers and obligors, alongside the adoption of relevant amendments to the Exchange’s rules. These steps provided a foundation for regulating the handling of a category of securities with characteristics that differ from those of shares.

In this context, Mohammed Saud Al-Asimi, Chief Executive Officer of the Kuwait Stock Exchange, stated: “The listing of Kuwait Finance House’s sukuk marks the actual commencement of using the bonds and sukuk platform, and represents the culmination of the work we have completed with stakeholders in the capital market ecosystem to accommodate fixed-income instruments. We focused on preparing the systems and listing and trading procedures to accommodate the nature of these instruments, allocating an independent trading board for them, while coordinating with the Kuwait Clearing Company regarding clearing and settlement services, and with brokers to facilitate trading through approved channels. Our responsibility lies in operating the platform efficiently, ensuring the integrity of its services, and maintaining clear procedures for participants.”

Al-Asimi added: “Data on listed instruments and related disclosures are of fundamental importance in operating this market, given the differing distribution dates, redemption terms, and other characteristics of each issuance. We are working to make information available through approved channels and to support relevant authorities in understanding and complying with continuous disclosure requirements. We also monitor the operational aspects of trading on the platform, engaging with brokers and market participants to address their needs, thereby supporting service continuity and enhancing user experience, and enabling investors to track their instruments based on clear information.”

Al-Asimi continued: “In the coming phase, we will facilitate the readiness of entities wishing to list by maintaining direct communication with issuers, their advisors, and fund managers, clarifying relevant documents, requirements, and procedures. This will allow us to address technical inquiries before applications are submitted and to manage the transition of issuances to the listing stage and subsequent obligations. We also hope to leverage feedback from participants to improve services and enhance procedural efficiency, ensuring the platform meets the needs of future issuances and provides institutions with a practical pathway to benefit from the fixed-income instrument market.”

The platform enables investors to trade listed bonds and sukuk through licensed brokers, in accordance with applicable trading and disclosure rules, with prices determined by supply and demand. The existence of this framework gains significance after the issuance is completed, as it provides a secondary market through which trading activities and information related to the instrument can be monitored. With the diversity of issuances and growing participation, available data for comparison and analysis can evolve, thereby supporting investors’ decisions and institutions’ assessments of opportunities to list their instruments in the future.

Commenting on this, Khaled Yousef Al-Shamlan, Chief Executive Officer of Kuwait Finance House Group, stated: “The listing of the first sukuk issuance underscores Kuwait Finance House’s pioneering role in enhancing and diversifying investment and financing instruments compliant with Islamic Sharia principles. This listing is an extension of the Group’s strategy aimed at strengthening capital management efficiency, aligning its resources with growth and expansion plans, while maintaining financial robustness and adhering to regulatory requirements, thereby supporting the bank’s capacity to finance developmental projects and contribute to driving economic activity in Kuwait.”

Al-Shamlan clarified that the listing provides investors with a new asset class alongside equities and Real Estate Investment Trusts (REITs), thereby enhancing investment diversification, raising liquidity levels, and contributing to more efficient risk management.

He added: “The listing embodies the integration of roles between Kuwait Finance House as the originator and arranger of Islamic capital market instruments, and the Kuwait Stock Exchange as a regulated platform for trading, disclosure, and market development, thereby enhancing the attractiveness of the local market and providing broader opportunities for investors and institutions. This achievement underscores Kuwait Finance House’s continued leadership in launching distinctive initiatives that contribute to expanding the base of innovative Islamic investment products, as well as its support for the growth of the Kuwaiti capital market and the strengthening of Kuwait’s position as a regional financial hub.

Al-Shamlan concluded: “We appreciate the efforts of the parties involved in structuring the issuance and its listing, and we look forward to continuing our collaboration with the Kuwait Stock Exchange and the market ecosystem in serving the sukuk holders. The success of this initiative highlights the importance of coordination between financial institutions and market service providers, and the leveraging of local expertise in executing issuances that respond to financing and investment needs and support sustainable economic development.”

With this listing, the Kuwait Stock Exchange opens a pathway for companies and financial institutions considering diversifying their funding sources or utilizing instruments aligned with their capital needs. The Exchange invites interested parties to contact it, along with the listing advisors and issuance managers, to learn about the requirements of the bonds and sukuk platform and to assess the opportunities for leveraging it within well-planned strategies. Preparation for this pathway includes selecting the instrument structure, identifying the target investor base, and organizing disclosure and communication responsibilities associated with the listing.

Furthermore, the availability of a local listing venue for fixed-income instruments offers institutions an option to consider alongside decisions on issuance, financing timing, and currency. It enables treasury, finance, and advisory teams to operate within an ecosystem that encompasses expertise in structuring, intermediation, and market services, thereby facilitating the organized preparation and monitoring of issuances. The benefits of these options depend on the suitability of the instrument to the institution’s objectives, its capacity to meet its obligations, and the quality of information provided to investors.

The Kuwait Stock Exchange continues to work on transforming this launch into a sustainable activity that attracts issuances from various institutions and sectors, and enhances the use of the capital market in financing the economy.

The listing of Kuwait Finance House’s sukuk represents a foundational step in this direction, combining the initiative of a leading banking institution with a market infrastructure capable of serving new needs. Through fostering participation, developing services, and building confidence, the Exchange is advancing efforts to enable capital to access growth opportunities, strengthen the private sector’s capacity for investment and production, and support a more diversified and competitive Kuwaiti economy.