ZAWYA: Boursa Kuwait ready to launch exchange-traded funds

About this update from Boursa Kuwait Securities Company (k.p.s.c)

AlOsaimi: We extend our sincere appreciation to the CMA and its valuable efforts in approving the legislative and regulatory environment for ETFsKuwait City: Boursa Kuwait welcomed the issuance of Capital Markets Authority Resolution 80 of 2026, which approved the comprehensive regulatory and legislative framework for exchange-traded funds (ETFs), including amendments to the Executive Bylaws of Law 7 of 2010. The CMA also approved the related amendments to the Boursa Kuwait Rulebook.Accordingly, Boursa Kuwait will introduce dedicated provisions governing ETFs into its Rulebook, which represents a significant addition to the Kuwaiti capital market and a pivotal step in advancing the country’s investment environment, diversifying available investment instruments and aligning the market with international best practices.The launch of ETFs completes the second part of Phase Three of the Market Development Program (MD 3.2), a key milestone in the development of the capital market that focused on modernizing its regulatory and operational infrastructure, enhancing the clearing and settlement framework and broadening the range of available investment products.MD 3.2 included a series of core initiatives aimed at strengthening the operational and regulatory infrastructure as well as expanding the range of products and services in the Kuwaiti capital market, including the introduction of the Central Counterparty (CCP) framework, cash settlements through local banks and the Central Bank of Kuwait’s KASSIP system; the upgrade of brokerage firms’ operating models to 'Qualified Broker' status, marking a significant step forward in market structure; and the introduction of sub-account numbers under omnibus accounts, which strengthened transparency and oversight. Finally, MD 3.2 saw the launch of bonds and sukuk on April 5, 2026, and culminated in the introduction of ETFs as two of its prominent investment offerings.The Market Development program reflects the high level of coordination and close integration across the Kuwaiti capital market apparatus, led by the Capital Markets Authority and in collaboration with Boursa Kuwait, Kuwait Clearing Company and other key market participants. Their collective efforts have supported the development of the market’s technical infrastructure and the completion of the necessary testing to ensure market readiness in line with leadin...

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