Central Bank of Kuwait Governor Urged Regular Bond and Sukuk Issuance

Central Bank of Kuwait Governor Basel A. Al-Haroon called for regular bond and sukuk issuance at a Sept. 23 roundtable, saying a steady program could deepen Kuwait’s capital markets and improve liquidity.

The closed discussion with selected Kuwaiti banks took place at the Central Bank of Kuwait. Al-Haroon said regular issuance could broaden the institutional investor base, increase the supply of high-quality collateral and improve price discovery.

He referred to Kuwait’s Financing and Liquidity Law of 2025 and the country’s sovereign yield curve across key maturities. He also urged banks to direct capital toward productive activity while assessing business models, cash flows and new-economy risks and maintaining underwriting standards.

“The policy objective, therefore, is not credit expansion for its own sake; but rather a better allocation of capital,” Al-Haroon said.

The roundtable covered economic diversification, housing finance, technology, artificial intelligence, cybersecurity and sustainable finance. Al-Haroon gave no issuance volume or timetable.