Kuwait Finance House rings the opening bell for the listing and trading of its first sukuk on the Kuwait Stock Exchange, valued at 200 million dinars with an annual yield of 5.5 percent
Kuwait Finance House announced the listing of its first sukuk on the Kuwait Stock Exchange, valued at 200 million dinars with a yield of 5.5 percent.
Translated by Alqyas from Al-Rai — Original source
- Khaled Al-Shamlan: A historic achievement that strengthens the trajectory of developing the local financial market and diversifying investment and financing instruments
- Sukuk enhance market depth and open new investment horizons for those seeking Sharia-compliant fixed-income instruments
- Provision of three main asset classes to support the growth of the capital market and bolster Kuwait’s regional standing
Kuwait Finance House (KFH) announced the ringing of the opening bell and the commencement of trading for the first sukuk listed on the Kuwait Stock Exchange, within the Additional Tier 1 Capital tranche. The issuance has a total value of 200 million Kuwaiti dinars and an annual yield of 5.5 percent. This historic step aims to diversify the investment instruments available to investors and enhance the depth of 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 providing 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. This decree aims to regulate the issuance of Sharia-compliant financing instruments, diversify funding sources, broaden the investor base, and enhance public debt and liquidity management.
The announcement was made during the ceremony for the listing and trading of the sukuk at the Kuwait Stock Exchange, attended by Bader Al-Kharafi, Chairman of the Board of Directors of the Kuwait Stock Exchange; Khaled Al-Shamlan, CEO of KFH Group; Mohammed Al-Asimi, CEO of Kuwait Stock Exchange Company; Abdullah Al-Haddad, CEO of Baitak Capital; and other officials.
Al-Shamlan stated, “The listing and trading of sukuk on the Kuwait Stock Exchange represent a historic achievement and an unprecedented development in the Kuwaiti money market. It is a strategic step toward establishing an organized market for trading sukuk, providing investors with an effective mechanism to buy and sell these instruments. This enhances their role as a key tool for boosting liquidity and activity, and increasing investment inflows into the market.”
He added, “The offered sukuk are Mudaraba sukuk within the Additional Tier 1 Capital tranche, marking the first listing in the debt instruments market on the Kuwait Stock Exchange. They offer an annual yield of 5.5 percent, distributed semi-annually. This achievement completes the investment ecosystem on the Kuwait Stock Exchange by providing three main asset classes: equities, fixed-income instruments, and Real Estate Investment Trusts (REITs). This supports the growth of the Kuwaiti capital market and strengthens 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 realizing this landmark project.
He said, “Just as KFH was a pioneer in launching many innovative financial initiatives and products, it continues to lead this transformation today through the listing of the first sukuk on the Kuwait Stock Exchange. This enhances the private sector’s contribution to supporting economic development and developing the local money market. We hope this step will serve as an incentive for other institutions and banks to utilize this important financing and investment instrument.”
Al-Shamlan noted that this achievement underscores Bayan Al-Kharafi’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.
He added that this step contributes to expanding the range of Islamic investment products available to investors and strengthens Bayan Al-Kharafi’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 broader segment of investors to benefit from this investment instrument.
Al-Shamlan clarified that the nominal value of the sukuk is KD 1,000, and the trading unit is also KD 1,000 and its multiples, with the possibility of early redemption according to the issuance terms. He pointed out that profits will be distributed semi-annually starting from the date of official listing and trading.
Al-Shamlan emphasized that the sukuk offer investors several 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.
Al-Shamlan explained that Bayan Al-Kharafi’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.
