19/10/2026 04:46 AST
Boursa Kuwait received the award for "Arab Exchange with the Highest Turnover Ratio" for 2025 from the Arab Federation of Capital Markets (AFCM) at a ceremony held in Abu Dhabi, United Arab Emirates. The award recognizes Boursa Kuwait for achieving the highest turnover ratio among the Arab exchanges assessed, reflecting the level of trading activity relative to the market's capitalization during the period under review.
The exchange's turnover ratio reached 50 percent in 2025, supported by a 79.26 percent increase in traded value to KD 26.58 billion, while market capitalization rose by 22.05 percent to KD 53.187 billion at year-end.
Boursa Kuwait's performance in 2025 reflects sustained efforts to develop the Kuwaiti capital market through infrastructure modernization, improved operational efficiency and more advanced trading mechanisms, efforts which have also supported the diversification of investment products and instruments and expanded market access to a broader investor base. The bourse continues to develop an efficient and transparent capital market that keeps pace with regional and global developments, enhances its appeal to investors and supports its contribution to Kuwait's economy.
An ongoing commitment to market development
Boursa Kuwait continued to work closely with the Capital Markets Authority (CMA), Kuwait Clearing Company (KCC) and other stakeholders across the capital market apparatus to modernize market infrastructure, strengthen trading and post-trade operations and expand investment opportunities.
These efforts reached a significant milestone in July 2025 with the implementation of the second part of the third phase of the Market Development Program (MD 3.2). The initiative introduced the Central Counterparty (CCP) framework, upgraded brokerage firms to the Qualified Broker model, enabled cash settlements through local banks and the Central Bank of Kuwait's KASSIP system and established sub-account identification within omnibus accounts.
Alongside these operational enhancements, MD 3.2 established the technical foundation for the subsequent introduction of exchange-traded funds (ETFs) and fixed-income instruments, including bonds and sukuk, supporting the continued diversification of Kuwait's capital market.
Boursa Kuwait further strengthened its sustainability efforts with the release of an updated edition of its Environmental, Social and Governance (ESG) Reporting Guide, designed to help listed companies produce clearer, more consistent and internationally aligned sustainability disclosures.
Developed in accordance with Capital Markets Authority (CMA) requirements, the guide incorporates the IFRS S1 and IFRS S2 sustainability disclosure standards and provides expanded guidance on climate-related risks, emissions reporting and materiality assessments. The update also supports companies listed on the "Premier" Market in meeting CMA requirements to publish sustainability reports beginning in 2026, covering the 2025 financial year. This builds on Boursa Kuwait's longstanding commitment to responsible market practices, dating back to its participation in the United Nations Sustainable Stock Exchanges (SSE) initiative in 2017, while advancing transparency and strengthening the market's appeal to sustainability-focused investors.
These initiatives support Boursa Kuwait's long-term strategy to connect the Kuwaiti capital market with its regional and global peers. They also aim to strengthen investor confidence, attract local and international institutional investment, support private sector financing and contribute to economic diversification in line with "Kuwait Vision 2035".
Strengthening market activity and broadening the investor base
Boursa Kuwait's recognition for achieving the highest turnover ratio among the Arab exchanges assessed underscores the strength of trading activity in the Kuwaiti capital market and its ability to attract sustained investor participation relative to its size. The distinction is particularly significant given the considerable growth recorded during 2025, when traded volume increased by 71.48 percent to 117.43 billion shares, accompanied by a 54.57 percent rise in the number of executed trades to more than 6.04 million. Together, these figures demonstrate that market performance was supported by substantial growth in both trading volumes and transaction activity, reinforcing the significance of the award as a measure of market activity relative to capitalization.
The "Premier" Market accounted for 56.32 percent of total traded value, equivalent to approximately KD 14.97 billion, while the "Main" Market represented 62.76 percent of total traded volume.
Market indices also recorded gains during the year, with the "Premier" Market Index rising by 21.17 percent and the "Main" Market Index by 20.20 percent and the All-Share Index by 20.99 percent, closing the year at 8,908 points. The value of trading by market makers also increased by 88.63 percent to approximately KD 5.38 billion, reflecting their role in enhancing liquidity.
Broadening investor participation remains a key priority for Boursa Kuwait, with efforts focused on strengthening engagement among retail investors and local and international institutions. In 2025, institutional investors accounted for 63.84 percent of total traded value, while foreign investors contributed 13.80 percent, with foreign ownership reaching 14.59 percent of total shares by year-end. This participation was accompanied by a significant expansion in the active investor base, as the number of active investor accounts more than doubled, rising by 111.52 percent to 47,670.
To build on this momentum, Boursa Kuwait continued to promote the market and its investment opportunities through international conferences, investor roadshows and strategic partnerships with financial and investment institutions. These efforts provided opportunities for direct engagement between listed companies and investors, increased the visibility of Kuwaiti companies among international institutions and highlighted ongoing improvements to the market's infrastructure and investment environment.
Recognition for Kuwait's capital market ecosystem
Boursa Kuwait's recognition as the "Arab Exchange with the Highest Turnover Ratio" reflects the collective efforts of stakeholders across Kuwait's capital market apparatus, whose continued collaboration has contributed to the development of market infrastructure, greater operational efficiency and improved market performance. The award also underscores the importance of sustained coordination among regulators, market infrastructure providers, listed companies, brokerage firms, financial institutions and investors in advancing the development and competitiveness of the Kuwaiti capital market. Building on this approach, the exchange continues to work with its partners to develop the market and provide an environment that responds to the changing needs of investors and issuers, supporting its role in connecting capital with investment opportunities.
Building a deeper and more diversified market
The award comes as Boursa Kuwait advances its transition towards a multi-asset market, building on years of infrastructure development and regulatory reforms to introduce new investment products and broaden opportunities for investors and issuers. This progress gained further momentum in 2026 with the launch of the exchange-traded funds (ETF) platform and the development and activation of trading infrastructure for fixed-income instruments, including bonds and sukuk. By expanding the market beyond equities, these developments provide investors with greater opportunities for portfolio diversification while creating additional financing channels for issuers.
Together, these initiatives mark an important step in Boursa Kuwait's long-term strategy to deepen the market, strengthen its competitiveness and develop a more comprehensive investment environment capable of serving the evolving needs of market participants. Boursa Kuwait also continues to develop the market's technological infrastructure and invest in modern systems and solutions. These investments strengthen its capacity to accommodate additional products and services in the future and enhance operational readiness in line with the practices and standards of developed financial markets.
Strengthening regional and international engagement
Boursa Kuwait continues to strengthen the regional and international presence of Kuwait's capital market through engagement with global investment institutions, asset managers and investors, and participation in specialist capital market conferences and events.
Through these efforts, the exchange highlights developments in the Kuwaiti market, promotes listed companies and investment opportunities and strengthens communication between the global investment community and stakeholders across the capital market ecosystem. Boursa Kuwait places particular emphasis on financial literacy and investor education, recognizing the role of knowledge in supporting informed participation in capital markets and helping investors better understand investment instruments and trading mechanisms.
Appreciation for the Arab Federation of Capital Markets and Abu Dhabi Securities Exchange
Boursa Kuwait extends its appreciation to the Arab Federation of Capital Markets for this recognition and for its role in promoting cooperation and the exchange of knowledge and expertise among Arab exchanges and capital market institutions, supporting the development of markets across the region.
The exchange also extends its sincere appreciation to Abu Dhabi Securities Exchange (ADX) for hosting and organizing the event and for bringing together representatives of exchanges, capital market institutions and the region's financial sector.
Boursa Kuwait recognizes the importance of continued cooperation among Arab exchanges in addressing shared challenges, exchanging technical expertise and identifying opportunities for market development. Such engagement provides a valuable platform for strengthening regional coordination and advancing practices that respond to evolving investor expectations and developments in global capital markets.
The company is committed to building on the progress achieved through successive phases of market development, with a continued focus on modernizing infrastructure, diversifying investment products and broadening investor participation. These priorities extend beyond enhancing market efficiency and competitiveness to strengthening Kuwait's position as a regional investment destination, attracting domestic and international capital and expanding the capital market's contribution to financing economic growth. By translating its long-term development strategy into tangible improvements, Boursa Kuwait aims to reinforce the market's role as a key driver of Kuwait's economic diversification and the realization of Kuwait Vision 2035.
Kuwait Times
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