Kuwait to extend Boursa working hours, revamp auction system to boost market attractiveness
Dual reform — longer trading hours and a revamped auction system — is poised to support Kuwait’s ambitions of becoming a more dynamic financial hub, offering a more stable and transparent environment that meets the expectations of both regional and international investors
In a strategic step to enhance competitiveness of the Kuwaiti financial market and aligning it with global standards, plans are underway to extend trading hours on the Kuwait Stock Exchange by an additional half hour and introduce key changes to the closing auction mechanism.
The initiative, part of a broader effort to improve investment climate and market efficiency, is being pursued within the framework of Kuwait’s Vision 2035, which emphasizes the development of the financial sector as a driver of national economic growth.
According to the source, this move is expected to significantly increase liquidity, promote transparency, and offer a more attractive platform for both local and foreign investors, reports Al-Qabas daily.
This would mark the first change in trading hours in nearly two decades, and is seen as essential to keeping pace with Gulf neighbors such as the Saudi Stock Exchange and the Abu Dhabi Securities Exchange, both of which operate longer trading periods. Aligning with these regional markets is expected to facilitate comparisons, enhance cross-border investments, and help attract international financial institutions.
The source explained that the extension will offer investors more time to execute trades efficiently and adapt to shifting market dynamics, especially during high-demand periods. It will also support the introduction of more sophisticated financial instruments such as derivatives, ETFs, and fixed-income products like bonds and sukuk, which require broader trading windows and more flexible risk management tools.
In parallel, the stock exchange is also preparing to update its closing auction mechanism, a critical period used to determine official closing prices for securities. The planned modernization includes greater flexibility in auction duration, the ability to amend orders during the period, and more transparent, volume-weighted pricing formulas.
These updates aim to strengthen the integrity of closing prices — an essential reference point for market indices and ETFs—and to better align with the requirements of global benchmarks.
Extensive technical testing will soon be conducted involving key stakeholders in the capital markets ecosystem, including the Kuwait Stock Exchange, the Kuwait Clearing Company, and local brokerage firms. The goal is to ensure that the system upgrades can be implemented without compromising execution speed or operational efficiency.
Ultimately, this dual reform — longer trading hours and a revamped auction system — is poised to support Kuwait’s ambitions of becoming a more dynamic financial hub, offering a more stable and transparent environment that meets the expectations of both regional and international investors.
