DUBAI – Kuwait plans to establish a law to regulate issuance of sukuk, or Islamic bonds, locally and internationally in support of more sustainable finances for the oil-rich Gulf country, the prime minister said on Wednesday.
Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah told the World Governments Summit in Dubai that his country was seeking various debt tools to diversify its economy.
Kuwait has been pushing fiscal reforms to drive growth and control its budget deficit against a backdrop of low oil prices. Hydrocarbons are the small country’s main source of revenue, accounting for almost 90% of government revenue in 2024.
“We are about to approve the first legislation regulating issuance of government sukuk locally and internationally, in accordance with Islamic laws,” al-Sabah said.
“This enables us to deal with financial challenges flexibly and responsibly, and to plan for medium and long-term finances.”