Kuwait prepares maiden sovereign sukuk

Author: Lizzie Meager | Published: 28 Aug 2015

The Kuwaiti government is developing new legislation which will allow it to issue a sovereign sukuk.

The oil-dependent country is looking to diversify its funding sources amid crude oil prices’ 50% drop over the past 12 months.

In addition to the sovereign sukuk law, which is being prepared by the Ministry of Commerce and Industry, the Capital Markets Authority (CMA) has submitted a series of regulations to industry bodies and local law firms for their feedback.

Sovereign issuance hinges on the two being finalised, which Alex Saleh, partner and head of Al Tamimi’s Kuwait office, thinks will be within the next 12 months....