- Kuwait’s capital market has taken a significant step forward with the approval of a regulatory framework for exchange-traded funds (ETFs), a move expected to broaden investment opportunities, attract capital and support the country’s ambitions to become a leading regional financial hub.
Boursa Kuwait has described the approval of a regulatory and legislative framework for exchange-traded funds (ETFs) as a pivotal milestone in the development of Kuwait’s investment environment, marking the latest phase in efforts to modernise the country’s capital markets.
The move follows a decision by the Capital Markets Authority (CMA) to adopt regulations governing ETFs, including amendments to the executive regulations of Law No. 7 of 2010 and changes to the stock exchange’s rules. Boursa Kuwait said it will issue additional amendments to its rulebook to accommodate the listing and trading of ETF products.
In a statement, the exchange said the introduction of ETFs represents a qualitative addition to Kuwait’s financial market infrastructure and forms part of the second stage of the third phase of the market development program.
The program has focused on upgrading regulatory and operational systems, strengthening clearing and settlement mechanisms and expanding the range of available investment products.
The exchange noted that the launch follows the introduction of bonds and sukuk trading in April this year, describing ETFs as one of the most significant outcomes of the market development strategy.
Boursa Kuwait Chief Executive Officer Mohammed Al-Osaimi said testing conducted in coordination with market participants had demonstrated the readiness of the trading infrastructure, paving the way for ETF listings and trading.
“The exchange is now ready to receive listing requests and facilitate the trading of exchange-traded funds, ensuring a stable launch of this investment instrument in the Kuwaiti market,” Al-Osaimi said.
He added that the exchange had played a central role in modernizing technical and operational systems to accommodate advanced investment products and support the CMA’s efforts to align Kuwait’s capital markets with international standards.
According to Al-Osaimi, the introduction of ETFs contributes directly to the objectives of Kuwait Vision 2035 by enhancing market competitiveness, attracting foreign investment and strengthening the role of the private sector in driving economic growth.
He said the launch demonstrates confidence in Kuwait’s financial system despite ongoing geopolitical challenges, adding that continued market reforms are aimed at creating a transparent and diversified investment environment capable of supporting long-term national development goals.
Market officials said the achievement reflects close coordination between the Capital Markets Authority, Boursa Kuwait, Kuwait Clearing Company and other stakeholders, helping position Kuwait as an increasingly attractive destination for regional and international investors.
