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....