Kuwait's CMA Approves Regulatory Framework for Exchange-Traded Funds (ETFs)

The Capital Markets Authority (CMA) has approved a regulatory and legislative framework for exchange-traded funds (ETFs), clearing the way for the first ETF listings on Boursa Kuwait. Issued as CMA Resolution No. 80 of 2026 on Thursday 18 June 2026, the framework amends the Executive Regulations of Law No. 7 of 2010 (the Capital Markets Law), including Book 13 on Collective Investment Systems and the Book 12 listing rules, together with corresponding changes to the Boursa Kuwait and Central Depository rules.

Boursa Kuwait described the approval as a pivotal milestone in modernising the country's capital markets, noting that the introduction of ETFs forms part of the second stage of the third phase of its Market Development Programme. The exchange said it would issue further amendments to its rulebook to accommodate the listing and trading of ETF products, and would coordinate clearing and settlement with Kuwait Clearing Company.

The decision follows the launch of bonds and sukuk trading in April 2026 and is intended to broaden the range of investment products available to local and international investors. Following the decision, Boursa Kuwait Chief Executive Officer Mohammed Al-Osaimi said on 20 June that testing with market participants had confirmed the readiness of the trading infrastructure: “The exchange is now ready to receive listing requests and facilitate the trading of exchange-traded funds, ensuring a stable launch of this investment instrument in the Kuwaiti market.”

Officials said the achievement reflects close coordination between the CMA, Boursa Kuwait and Kuwait Clearing Company, and supports the objectives of Kuwait Vision 2035 by enhancing market competitiveness and attracting foreign investment.

For asset managers and issuers, the framework opens a first-mover opportunity to structure, license and list ETF products. WEFAQ advises fund sponsors and issuers on fund formation, listing-rule compliance, market-making and authorised-participant arrangements, custody and disclosure requirements under the amended regime.

For a deeper look, the legal architecture, a seven-step listing roadmap, and the key risks for first movers, read our full analysis: Kuwait Opens the Door to ETFs: A Practical Roadmap for Asset Managers and Issuers.

Disclaimer: This article is provided for general information only and does not constitute legal advice. For advice specific to your circumstances, please contact WEFAQ Law Firm.