Boursa Kuwait CEO Mohammed Al-Osaimi said the timeline for enabling the trading of debt instruments, including bonds and sukuk, is progressing as scheduled, with market launch expected in 2025.
He stated that all technical tests for index funds and the bond and sukuk markets have been successfully completed, and regulatory frameworks are currently under development and will be announced in the coming months.
Al-Osaimi made these remarks during the launch of the second part of the third phase of the Capital Market Development Program — described as a major step forward that underscores the market’s ongoing commitment to aligning with global best practices, reports Al-Rai daily.
While noting that current commercial debt instruments in Kuwait do not exceed KD 2 billion in value, Al-Osaimi expressed hopes of listing government bonds and sukuk once the public debt law is passed.
He also revealed that Boursa Kuwait is implementing a long-term development program spanning three to four years to enhance its trading system. Testing for a new trading platform is set to begin in the second half of next year.
Al-Osaimi highlighted recent structural reforms, such as the launch of the Central Clearing Party (CCP) and the Central Broker, both of which are expected to lay the groundwork for introducing financial derivatives.
He noted that foreign investment and market confidence are key goals of these reforms, which also include adjustments to listing requirements.
For example, the minimum capital requirement for companies listing on the main market has been lowered from KD 15 million to KD 5 million. As a result, there has been renewed interest from subscription managers and family-owned companies, two of which are already in talks for potential listings.
However, Al-Osaimi clarified that there are no current plans to list oil sector companies, though discussions are underway with the Public-Private Partnership Authority regarding the potential listing of a government-owned entity, such as North Az-Zour, in 2026.
Discussing the broader Capital Market Development Program, Al-Osaimi emphasized that this latest phase marks a qualitative leap in Kuwait’s financial market infrastructure. Improvements include enhanced clearing and settlement systems, upgraded trading technologies, and a more transparent market structure—thanks to the implementation of the “qualified intermediary” model.
He credited the achievement to the coordinated efforts of the Capital Markets Authority, the Central Bank of Kuwait, Kuwait Clearing Company, and Boursa Kuwait, as well as private sector partners, including banks, investment firms, and brokerages.
Al-Osaimi concluded by affirming Boursa Kuwait’s commitment to sustainable market development, aligned with a vision of positioning Kuwait as a premier financial hub in the region.
