Sukuk boosting sovereign Shariah financing
Kuwait has officially introduced government sukuk (Islamic bonds) as a financing tool to meet public needs and manage debt, through legislative legislation that includes comprehensive regulations enabling the state to issue sukuk in Kuwaiti dinars and foreign currencies, both domestically and abroad. These sukuk can be issued in participation with natural persons and legal entities, including non-Kuwaitis. The law aims to expand sovereign financing tools, enhance debt management flexibility, and diversify the investor base both locally and internationally, with a focus on ensuring compliance with Shariah principles. Additionally, the law allows for the issuance of various types of sukuk, the establishment of a private company to manage assets, and requires coordination with the Central Bank of Kuwait for issuing sukuk in dinars or foreign currencies. It also regulates their trading operations in the local and international markets, with an executive regulation to be issued within three months of the law’s enforcement.
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