Kuwait Enacts New Law to Introduce Government Sukuk

Kuwait, 24 September, 2026: Kuwait has issued Law No. (90) of 2026 concerning Government Sukuk, establishing a legal framework for the State to issue Sharia-compliant sukuk as part of its sovereign financing structure.

🔎 Key Highlights

The new law aims to:

• Diversify government financing instruments alongside conventional debt.
• Increase flexibility in managing the State’s debt portfolio and liquidity risks.
• Expand access to local and international Islamic finance markets and investors.
• Support the development of Kuwait’s local debt and sukuk markets.
• Establish a sovereign sukuk yield curve across different maturities, supporting more efficient pricing and market benchmarks.

The Ministry of Finance stated that the framework will support a more structured and sustainable approach to sovereign issuances while strengthening Kuwait’s presence in local and international capital markets.