Al-Rifai: Sukuk law is a step toward developing the financing system
Finance Minister Dr. Yaqoub Al-Rifai affirmed that the enactment of Law No. (90) of 2026 concerning government sukuk represents a significant step in developing Kuwait’s sovereign financing framework by expanding the range of available financing instruments and adding a Sharia-compliant tool. In a press statement, Al-Rifai stated that the law enables the inclusion of sukuk within the sovereign financing structure alongside traditional debt instruments, thereby enhancing the flexibility in managing financing needs, diversifying funding sources and the investor base both locally and internationally, and supporting the state’s efforts to develop capital markets and improve the efficiency of financial liability management. This aligns with financial sustainability objectives and preserves the strength of the state’s financial position.
For his part, Faisal Al-Muzaini, Director of the Public Debt Department at the Ministry of Finance, explained that the law completes the necessary tools for implementing a comprehensive public debt management strategy, as it allows for the inclusion of sukuk in the state’s sovereign financing structure alongside traditional debt instruments. Al-Muzaini added that the law provides greater flexibility in managing the debt portfolio by diversifying instruments, markets, maturity profiles, and the investor base, while also strengthening the ability to manage refinancing and liquidity risks, and to select the timing, size, and structure of issuances according to the state’s financing needs and local and global market conditions. He noted that the law provides an additional framework to capitalize on opportunities in Islamic finance markets, thereby broadening the base of local and international investors.
Regarding the local market, Al-Muzaini stated that the local issuance of government sukuk would support the development of the domestic debt market and the construction of a sovereign yield curve for sukuk across different maturity tenors. This would enhance pricing efficiency, provide a benchmark for corporate and financial institution issuances, and contribute to deepening the secondary market and boosting liquidity levels. He affirmed that the Ministry of Finance will adopt an institutional and well-considered approach in managing issuances, supporting the establishment of a regular and sustainable presence for Kuwait in local and international capital markets and reinforcing its position as a sovereign issuer.
