Kuwait Bourse posts 20.83 million dinars net profit in 9 months

Compared to the same period last year, net profit attributable to shareholders of the parent company declined by 9.63%, while operating revenues fell by 3.12% and operating profit dropped by 9.17%. On the financial position front, total group assets increased by 1.48% to reach KD 134.94 million, while equity attributable to shareholders of the parent company grew by 0.62% to reach KD 74.6 million.

Kuwait Bourse continued to implement its strategic priorities to develop the market and maintain operational efficiency, in collaboration with the Capital Markets Authority, the Kuwait Clearing Company, and other stakeholders in the capital market ecosystem. This was achieved amid a regional environment characterized by ongoing geopolitical challenges, which intensified during the third quarter of 2026 and impacted the economic and investment landscape as well as investor sentiment.

These circumstances highlighted the importance of institutional readiness and operational flexibility in ensuring trading continuity, particularly during periods of volatility and heightened uncertainty. The Bourse relied on the robustness of its business model, the diversification of its revenue streams, and its prudent risk management approach to navigate these developments, thereby enhancing its ability to adapt to changes and continue implementing its development initiatives.

This approach reflects Kuwait Bourse’s commitment to balancing operational stability requirements with long-term objectives, building on reforms and investments implemented in recent years to strengthen the market’s capacity and competitiveness, and expanding the benefits for participants from the infrastructure and products developed in previous phases of the market development program.

Commenting on the financial results and the company’s strategic direction, Bader Nasser Al-Kharafi, Chairman of the Board of Directors of Kuwait Bourse, stated: “The region experienced ongoing geopolitical challenges during the first nine months of the year, with their effects extending to the economic and investment landscape and investor decisions. Amid these circumstances, Kuwait Bourse has demonstrated its resilience, ability to withstand shocks, and adaptability, relying on a solid regulatory framework and an institutional and operational structure that has evolved through years of reform. This experience underscores the importance of investments directed toward building a flexible market capable of handling changes and continuing to serve the national economy. It also reinforces that market resilience and investor confidence support our long-term vision.”

Al-Kharafi added: “We have confidence in the fundamentals of the Kuwaiti capital market and its ability to continue evolving. We place paramount importance on investor confidence, both local and international, in our strategic direction. This confidence is reinforced by the integrated roles of the market ecosystem under the leadership of the Capital Markets Authority, as well as our commitment to governance, disclosure, and service quality. Our responsibility lies in building on these fundamentals and maintaining an investment environment characterized by clarity and fairness, enabling participants to assess opportunities and risks and make decisions based on reliable information.”

Al-Kharafi emphasized that addressing changes requires maintaining a long-term vision, while closely monitoring performance and risks and carefully prioritizing investments. He noted that Kuwait Bourse continues to work on enhancing the sustainability of its business model and diversifying its activities, thereby supporting its ability to deliver value to shareholders and capitalize on growth opportunities offered by market development.

He stated: “We strive to combine financial discipline with strategic investment in market development, directing the company’s resources toward priorities that enhance its competitiveness and growth capacity. The progress toward a multi-asset market represents a crucial pathway to expanding investor options and meeting the financing needs of companies, thereby strengthening the role of the capital market in linking capital with productive opportunities. This supports the growth of the private sector and the diversification of the national economy, in alignment with the objectives of Kuwait Vision 2035.”

Al-Kharafi emphasized that the Board of Directors places great importance on monitoring the economic impact of development projects and supporting the executive management in translating adopted strategies into services that meet the needs of market participants. This approach is based on balancing shareholders’ interests with market development requirements, and adhering to the regulatory and institutional frameworks governing the company’s operations. It also reflects the Kuwait Stock Exchange’s commitment to integrating its role in operating the market, developing its infrastructure, and enhancing its attractiveness to investments, alongside its dedication to improving practices related to transparency, disclosure, and sustainability.

Al-Kharafi said: “On behalf of the Board of Directors, I extend my gratitude to our shareholders for their trust, and to the executive management and company employees for their efforts and commitment. I also appreciate the role of the Capital Markets Authority and the cooperation with the Kuwait Clearing Company, as well as all our partners in the market ecosystem, and the contribution of investors, issuers, and brokers in continuing to develop the Kuwaiti capital market.”

The total value of shares traded during the first nine months amounted to KD 15.64 billion, compared to approximately KD 19.35 billion, representing a decline of 19.17%. Trading volume reached 59.86 billion shares, down 28.93% on an annual basis.

The average daily trading value reached KD 86.42 million, compared to KD 106.91 million, while the market capitalization stood at KD 52.58 billion, showing a slight decrease of 0.05%, remaining close to its level at the end of the corresponding period last year.

The “First” market recorded a 3.25% increase in the number of trades, reaching 1.85 million, and its market capitalization rose by 0.6% to KD 43.42 billion, while trading value reached KD 9.91 billion, down 9.58%. These indicators reflect divergent performance paths between the number of transactions, their value, and stock price movements, necessitating a combined analysis to assess market activity.

In the “Main” market, trading value reached KD 5.73 billion, with investors trading 34.26 billion shares across 2.12 million trades, while its market capitalization stood at KD 9.17 billion. The market continues to provide opportunities for investors in companies from various sectors and sizes, within a listing and trading structure that considers the diversity of participants and their needs.

Market-making data also showed growth in the trading value of incentivized market makers, excluding traded real estate funds, by 32.17%, reaching KD 4.8 billion. This activity is significant for providing buy and sell offers that support trade execution options, while liquidity quality remains linked to the depth of trading orders, price spreads, and the continuity of their availability.

The share of “institutional investors” in trading activity during the first nine months of 2026 rose to 70.08%, compared to 63.94% in the same period last year, an increase of 6.14%, while the share of individual investors stood at 29.92%.

Regarding geographic distribution, the share of international investors, including Gulf investors, accounted for 17.28% of total trading value, compared to 13.97% in the corresponding period, an increase of 3.31%, while the share of local investors reached 82.72%. These data indicate a widening relative share of institutions and international investors in trading, while local participation remains important for market activity.

This composition highlights the importance of meeting the needs of diverse investor segments that differ in their strategies and transaction sizes. Institutions require analyzable information and services tailored to their operational requirements, while individual investors benefit from easy access to information, as well as a clear understanding of their tools, rights, and obligations. Enhancing these aspects constitutes a shared pathway to improving the trading experience in the market.

This engagement enables listed companies to gain a clearer understanding of the priorities of asset managers and financial institutions, and supports the investment community’s awareness of their business models and strategies. It also provides a platform for dialogue on the quality of disclosures and investor relations practices, thereby facilitating opportunity assessment based on clearer information and strengthening the presence of the Kuwaiti market among local and international institutions.

Commenting on the performance of the Kuwaiti capital market during the first nine months of 2026, Mohammed Al-Asimi, CEO of the Kuwait Stock Exchange, stated: “The Kuwait Stock Exchange focuses its executive work on meeting the needs of various participant segments through service efficiency, procedural clarity, and maintaining system readiness. We monitor operational requirements in coordination with our partners, facilitating investors’ access to the market and enabling issuers and brokers to benefit from its services, noting an increase in the share of institutional and international investors in trading activities.”

Regarding communication with investment institutions, Al-Asimi added: “Engaging with investment institutions and asset managers is a fundamental part of our efforts to expand the base of participants. We also strive to listen to their requirements concerning services, information, and market access procedures, alongside promoting the opportunities available in the Kuwaiti market. These discussions help us identify areas for improvement and follow up with relevant authorities, while enabling listed companies to communicate directly with investors and explain their business models and strategies.”

Within this framework, the exchange continued to bring together investment institutions and local and international specialists in professional meetings during the third quarter. These included hosting the MSCI forum for institutional investors and organizing a specialized seminar on exchange-traded funds (ETFs) in collaboration with the CFA Institute. These meetings focused on developments and practical needs related to investment, asset management, and the utilization of market products.

The Kuwait Stock Exchange continues to build on reforms implemented with the launch of Part Two of the third phase of the Market Development Program in July 2025. These reforms included the implementation of a central counterparty system, the development of cash settlement mechanisms, and upgrading the business model of brokerage firms to the “qualified broker” category, thereby supporting the integration of trading, clearing, and settlement operations among the roles of involved parties. Continuing this path, 2026 saw the development of a bond and sukuk trading platform and an ETF fund system.

These frameworks expand financing and investment options. Fixed-income instruments provide an additional channel for issuers and investors, while ETFs allow investment in a diversified portfolio of assets through a single listed product. Clarity regarding the characteristics, risks, and trading mechanisms of each instrument remains essential to empower participants to utilize them according to their needs.

In this context, the exchange organized workshops and held direct meetings with potential issuers and relevant stakeholders in the capital market ecosystem to clarify the characteristics of the products, as well as the requirements for their issuance, listing, trading, and associated obligations. This supports stakeholders in evaluating suitable options for their financing and investment plans and determining the requirements to leverage these products.

In this regard, Al-Asimi stated: “Kuwait Bourse’s priorities at this stage focus on enhancing the utilization of existing products and expanding their application scope, enabling issuers and financial institutions to deploy them in ways that meet the needs of investors and companies. This requires the integrated roles of asset managers, brokers, and market makers, alongside the availability of necessary services for issuance, listing, and trading. The exchange is working with its partners to address the practical requirements of each product and to develop services that support pricing efficiency and liquidity availability.”

Kuwait Bourse continues to implement its strategy for developing the Kuwaiti capital market, in collaboration with the Capital Markets Authority, the Kuwait Clearing Company, and other stakeholders in the capital market ecosystem. The focus is on translating structural reforms and infrastructure investments into tangible outcomes that enhance market efficiency and broaden the utilization of its services.

With the progress made in implementing the market development program, priorities are centered on enhancing the readiness of financial institutions and issuers to leverage new products and services, improving disclosure quality and operational efficiency, thereby creating conditions for sustainable growth in investment activity.

Through this approach, Kuwait Bourse aims to strengthen the economic role of the capital market as a platform for securities trading and an effective channel for mobilizing and directing capital toward productive activities. This enables companies to finance their expansion and business growth, supporting the competitiveness of the private sector and contributing to achieving the objectives of Kuwait Vision 2035.

In late September 2026, Kuwait Bourse was honored with the “Highest Turnover Rate among Arab Exchanges” award for 2025 from the Arab Federation of Capital Markets (AFCM).

This recognition is based on the exchange leading all Arab exchanges eligible for the award in this indicator, which measures trading value relative to market capitalization.

This acknowledgment highlights the level of market activity during the year covered by the award and reflects the contribution of stakeholders in the Kuwaiti capital market ecosystem to its development and efficiency enhancement.