Kuwait Stock Exchange Activates Fixed Income Market with Issuance of 'Bayt Al-Mal' Sukuk

Kuwait Bourse activated the Fixed Income Instruments Market by listing Kuwait Finance House’s sukuk valued at 200 million Kuwaiti dinars, under the short name “KFH Tier 1 Tranche 3,” in the first listing on the Fixed Income Instruments 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 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 select 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 fulfilling the regulatory requirements for the listing, trading, and disclosure of bonds and sukuk, in accordance with approved regulatory 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 Shariah principles, with an initial profit distribution rate of 5.50% annually, distributed semi-annually according to the issuance terms. The issuance was completed in May 2026, while today’s listing adds a presence in a regulated local market that enables trading in sukuk and monitoring of related disclosure information, in line with approved controls 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 Shariah advisory, credit analysis, and asset management, thereby enabling the utilization of national expertise and specialized competencies, and retaining a larger share of the added value from these activities within the local market.

On this occasion, Bader Nasser Al-Kharafi, Chairman of the Board of Directors of Kuwait Bourse, stated: “With the listing of Kuwait Finance House’s sukuk, Kuwait Bourse has activated a new asset class in the Kuwaiti capital market and solidified 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 of its institutions and capabilities are transformed into investments that support production and create sustainable value for Kuwait.”

Al-Kharafi added: “Kuwait Bourse is investing in the development of the capital market to enhance the economy’s growth capacity and enable institutions to access financing tools that support their projects and investment plans. Our strategy is built on creating a market that keeps pace with 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 Instruments 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 thanks and appreciation to the Chairman of the Board of Directors of Kuwait Finance House (KFH) Group, as well as to the members of the Board of Directors and the executive management, for their trust in the Kuwait Stock Exchange and for selecting it to list these sukuk. We are proud of the initiative of a leading national institution of KFH Group’s stature to participate in the launch of this market, which reflects confidence in its capabilities and a commitment to its development. This partnership provides significant momentum and sets a model of integration between the banking sector and the capital market in 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 phase. 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 strengthening 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, Hamad Abdulmohsin Al-Marzouq, Chairman of the Board of Directors of KFH Group, said: “The listing and trading of sukuk on the Kuwait Stock Exchange represents 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 is an extension of the Group’s expertise and leadership in issuing sukuk, and its dedication to developing capital instruments compliant with Islamic Sharia that meet financing and investment needs. We see 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 enhancing the presence of Kuwaiti financial institutions in regional and global sukuk markets. The local listing of these instruments allows us to leverage that expertise to build 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 strengthen 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 continue contributing to initiatives that develop the Islamic finance industry and support Kuwait’s position and expertise in this field.”