Kuwait Finance House Rings Bell to List and Begin Trading First Listed Sukuk

Kuwait Finance House (KFH) rang the opening bell to launch the trading of the first sukuk listed on the Kuwait Stock Exchange, within the first additional tranche of capital, with a total value of 200 million Kuwaiti dinars and an annual yield of 5.5%. This historic step aims to diversify investment instruments 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 and reinforcing Kuwait’s position as a regional financial hub capable of attracting further investments and offering 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 enhance public debt management and liquidity.

The announcement was made during the ceremony marking the listing and commencement of trading of the sukuk 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, Chief Executive Officer of KFH Group; Mohammed Saud Al-Asimi, Chief Executive Officer of the Kuwait Stock Exchange Company; Abdullah Suleiman Al-Haddad, Chief Executive Officer of Baitak Capital; and several other officials.

Strategic Step

Khaled Yousef Al-Shamlan, CEO of KFH Group, 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, and a strategic step toward establishing a regulated market for sukuk trading. This provides investors with an efficient avenue to buy and sell these instruments, enhancing their role as a key tool for boosting liquidity, activity, and investment inflows into the market.”

He added that the offered sukuk are mudaraba sukuk within the first additional tranche of capital, marking the first listing in the debt instruments market on the Kuwait Stock Exchange, with an annual yield of 5.5% distributed semi-annually. He noted that this achievement completes the investment ecosystem on the Kuwait Stock Exchange by providing three main asset classes: equities, fixed-income instruments, and traded real estate investment trusts (REITs), thereby supporting the growth of the Kuwaiti capital market and strengthening Kuwait’s position as a regional financial center.

Al-Shamlan emphasized that KFH 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.

Private Sector Contribution

He added: “Just as KFH was a pioneer in launching numerous innovative financial initiatives and products, it continues today to lead this transformation through the listing of the first sukuk on the Kuwait Stock Exchange, thereby enhancing 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 instrument.”

He further noted that the listing of sukuk enables investors to add a new asset class to their investment portfolios, enhances investment diversification, supports liquidity levels, and provides more efficient tools for risk management.

Al-Shamlan noted that this achievement underscores Kuwait Finance House’s leadership in developing innovative Islamic investment products, following its pioneering role in listing Real Estate Investment Trusts (REITs) on the stock exchange, and making it today the first to list sukuk in the local market. Expanding the product base, he affirmed that this step contributes to broadening the range of Islamic investment products available to investors and strengthens Kuwait Finance House’s position as one of the leading issuers and arrangers of sukuk in the region, by enabling local trading of sukuk, which were previously concentrated in global markets, thereby opening the door for a wider segment of investors to benefit from this investment instrument. Al-Shamlan clarified that the nominal value of the sukuk is 1,000 Kuwaiti dinars, and the trading unit is also 1,000 Kuwaiti dinars and its multiples, with the possibility of early redemption in accordance with the issuance terms. He pointed out that profits will be distributed semi-annually starting from the date of listing and official trading. He highlighted 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 Kuwait Finance House’s strong creditworthiness 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.