Times Kuwait, 21 September 2026: Kuwait has introduced Kuwait Decree‑Law No. 90/2026, a 35‑article framework governing the issuance, offering, management and trading of sovereign sukuk in dinars and foreign currencies.
The law expands Islamic financing and investment opportunities by permitting sukuk to be offered to citizens, residents and foreign investors, while allowing the government to reserve selected issues for Kuwaitis. It authorises a wide range of Sharia‑compliant instruments, including sukuk based on leased assets, usufructs, operating rights, Salam, Istisna’, Musharakah and Mudarabah structures, with multiple types permitted in a single issuance subject to Sharia Supervisory Board approval.
A wholly state‑owned special purpose company (SPV) will be established to manage sukuk assets, protect investors’ rights, collect returns and distribute profits. The law also creates a unified Sharia Supervisory Board, requiring at least three members with expertise in Islamic financial transactions, including one member from the Central Bank of Kuwait’s Supreme Sharia Supervisory Board.
Government sukuk may be listed and traded on local and international markets with the approval of the Minister of Finance. Investor protections include mandatory disclosure of material information, auditing of SPV accounts and liability for managers in cases of negligence or violations. The framework links sukuk issuance to financing and liquidity limits set under Kuwait Decree‑Law No. 60/2025.
The Capital Markets Authority Law will not apply to sukuk governed by this decree‑law. Implementing regulations must be issued by the Cabinet within three months of publication in the Official Gazette. The law takes effect immediately upon publication.
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