Interview: Mohammad Saud Al Osaimi, CEO, Boursa Kuwait, on boosting Kuwait’s global reach and investor confidence
Which new structural adjustments or market changes are being introduced to further develop Kuwait’s capital markets?
MOHAMMAD SAUD AL OSAIMI: Kuwait has implemented a wide-ranging set of structural reforms, improving efficiency and strengthening its appeal to both institutional and retail investors. Central to this effort is the Market Development Programme (MD), particularly its latest phase, MD 3.2, which focuses on aligning market operations and risk-management frameworks with global standards. One of the most significant developments under this phase is the introduction of the central counterparty (CCP) clearing mechanism. The CCP enhances post-trade security by reducing counterparty risk and reinforcing the integrity of settlement processes, which is particularly important for institutional investors seeking predictable and resilient market infrastructure.
Reforms have also extended to intermediaries. The upgrade to a “Qualified Broker” operating model allows brokers to offer a wider range of services, improve execution quality and enhance investor protection. Meanwhile, the introduction of sub-account structures has brought greater transparency and flexibility, enabling institutional investors to manage multiple portfolios and mandates more efficiently. Beyond equities, the technical and operational frameworks for exchange-traded funds and fixed-income instruments, including bonds and sukuk (Islamic bonds), have been completed. Once the remaining legislative processes are finalised, these products will diversify investment options and contribute to greater market depth.
Has the inclusion of Kuwaiti equities in international indices driven sustained foreign investment inflows, and to what extent?
AL OSAIMI: The inclusion of Kuwaiti equities in major international indices has delivered clear and lasting benefits. Since the MSCI Emerging Markets inclusion in 2020, following earlier entries into FTSE Russell and S&P Dow Jones indices, market liquidity and foreign participation have increased significantly. Average daily traded value has risen by more than 230% since 2019, reflecting deeper liquidity and sustained interest from global investors. This growth underscores the importance of pairing index inclusion with credible infrastructure and regulatory reform.
Kuwait has also emerged as one of the stronger-performing markets in the GCC, with indices posting solid year-to-date gains and market capitalisation reaching new highs. Foreign ownership levels have continued to expand, particularly in the Premier Market, reflecting growing confidence in governance, transparency and market operations. To maintain this momentum, ongoing engagement with the international investment community remains essential. At the same time, alignment with global standards remains a priority, from disclosure and governance practices to sustainability and market operations, ensuring that Kuwait remains competitive as an international investment destination.
What specific measures are being implemented to increase listings on Boursa Kuwait? How is the exchange supporting companies considering initial public offerings (IPOs)?
AL OSAIMI: Encouraging new listings is a strategic priority, particularly as Kuwait looks to revive IPO activity and broaden private sector participation. Listing requirements have been refined to better reflect market realities, including updates to the Main Market framework that lower entry thresholds while preserving strong governance standards. The small and medium-sized enterprise market, launched in late 2025, represents another important development in this space. It provides smaller companies with a regulated platform to raise capital, increase visibility and build market discipline. Over time, the platform can also act as a stepping stone to the Main Market, supporting greater corporate growth along with diversification.
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