Kuwait Finance House (KFH) rang the bell to mark the listing and commencement of trading of the first Sukuk on Boursa Kuwait. The KD 200 million Additional Tier 1 (AT1) issuance carries an annual profit rate of 5.5%. The landmark listing broadens investors’ options and deepens the local capital market by establishing a market for trading Sukuk, a key Sharia-compliant fixed-income instrument.

The listing follows approval from the Capital Markets Authority (CMA) and marks a pivotal step in the development of Kuwait’s financial market. It also strengthens Kuwait’s position as a regional financial hub, helping attract further investment and offering individual and institutional investors a wider choice of investment opportunities.

The step takes on added significance against the backdrop of recent legislative developments in Kuwait, including the enactment of Decree-Law No. 90 of 2026 on Government Sukuk. The legislation aims to regulate the issuance of Sharia-compliant financing instruments, diversify funding sources, broaden the investor base, and strengthen public debt and liquidity management.

The announcement was made at the bell-ringing ceremony marking the Sukuk listing and trading debut at Boursa Kuwait. The ceremony was attended by Boursa Kuwait Chairman, Bader Nasser Al-Kharafi, KFH Group CEO, Khaled Yousef AlShamlan, Boursa Kuwait CEO Mohammad Saud Al-Osaimi, KFH Capital CEO Abdullah Sulaiman Al-Haddad, and other officials.

KFH Group CEO, Khaled Yousef AlShamlan said: “The listing and trading of Sukuk on Boursa Kuwait represents a historic achievement and an unprecedented development for Kuwait’s capital market. It is a strategic step towards establishing a regulated Sukuk trading market, giving investors an efficient way to buy and sell these instruments while enhancing liquidity, stimulating trading activity, and attracting greater investment flows into the market.”

He explained that the issue consists of Additional Tier 1 Mudaraba Sukuk and represents the first listing on Boursa Kuwait’s debt instruments market, with an annual profit rate of 5.5%, distributed semi-annually. He noted that the milestone rounds out Boursa Kuwait’s investment offering by providing three main asset classes: equities, fixed-income instruments, and real estate investment trusts (REITs). This supports the growth of Kuwait’s capital market and strengthens the country’s position as a regional financial hub.

AlShamlan emphasized KFH’s continued leadership in developing the Islamic finance industry and creating innovative investment products that meet the needs of different investor segments. He expressed his appreciation to the Central Bank of Kuwait, the CMA, Boursa Kuwait, and Kuwait Central Securities Depository for their support and cooperation in bringing this landmark initiative to fruition.

“Just as KFH has pioneered numerous innovative financial initiatives and products, we continue to lead this transformation today by listing the first Sukuk on Boursa Kuwait,” he said. “This strengthens the private sector’s contribution to economic development and the advancement of the local capital market. We hope this step will encourage other institutions and banks to make use of this important financing and investment instrument.”

AlShamlan added that the listing enables investors to add a new asset class to their portfolios, enhancing diversification, supporting liquidity, and providing more effective tools for managing risk.

He said the achievement reaffirms KFH’s leadership in developing innovative Islamic investment products. Having been the first to list REITs on the exchange, KFH has now become the first to list Sukuk in the local market. He added that this step broadens the range of Islamic investment products available to investors and strengthens KFH’s position as one of the region’s leading Sukuk issuers and arrangers. By enabling local trading in Sukuk, which had previously been concentrated in international markets, the listing allows a wider investor base to benefit from this investment instrument.

AlShamlan explained that each Sukuk certificate has a nominal value of KD 1,000, while trading is in units of KD 1,000 and multiples thereof. Early redemption is possible in accordance with the terms of the issue. He added that profits will be distributed semi-annually from the official listing and trading commencement date.

He said the Sukuk offer investors several benefits, notably regular periodic returns and lower volatility than equities, making them a suitable option for investors seeking Sharia-compliant fixed-income instruments.

AlShamlan pointed out that KFH’s strong creditworthiness enhances the appeal of the issue. The Bank is rated A2 by Moody’s and A by Fitch, both with a stable outlook. These ratings reflect its financial strength and ability to meet its obligations, bolstering investor confidence in the new investment instrument.