Arab Press

بالشعب و للشعب
Tuesday, Aug 26, 2025

Kuwait equities attractively priced as country embarks on structural changes, awaits MSCI reclassification

Kuwait equities attractively priced as country embarks on structural changes, awaits MSCI reclassification

The decision by MSCI to postpone the reclassification of Kuwait indices from frontier market status to emerging market, and developments in the country since the coronavirus crisis started, means Kuwaiti equities are attractively priced.

This is the view of the KMEFIC FTSE Kuwait Equity UCITS ETF (KUW8), a UCITS compliant Exchange Traded Fund domiciled in Ireland which tracks the FTSE Kuwait All Cap 15% Capped Index, an index of large, mid and small cap securities trading on the premier or main market of Kuwait Stock Exchange.

Abdullah Al-Busairi, director of KMEFIC FTSE Kuwait ETF, commented: “The postponement of MSCI’s upgrade for Kuwait to emerging market status was a blessing in disguise as it has allowed Kuwaiti firms time to stabilize prior to the inclusion of major new investor inflows.

“This, combined with the fact that Kuwait has seemingly been successful so far in controlling the pandemic and is now slowly opening the economy back up, means Kuwait equity prices are very competitively priced. Even so, buying pressure will slowly ramp up again prior to the emerging market status upgrade in November.”

As for the broader economic outlook, in addition to the country’s efforts to boost its non-oil economy through its vision 2035 plan, the KUW8 Kuwait ETF spokesperson says several other factors support a more positive outlook for Kuwait. These include:

Budget Reform


While budget reform has been a constant talking point in Kuwait for several years, it has never been spoken about with urgency, and limited action has been taken.

However, there have now been some budget cuts across the board to several government institutions, as well as a growing effort to reduce the workforce, which accounts for a large part of government spending because over 70% of it is employed in the public sector.

These cuts will force many institutions to run more efficiently. In addition, there has been an active effort to finally implement a government taxation plan in the form of VAT on specific goods.

Finally, parliamentary debate regarding the public debt law which would allow the Kuwait government to borrow up to $65 billion from local and international sources over the next 30 years has reached critical phases with the finance minister pushing hard for parliament to approve and pass the law.

Anti-Corruption


In light of two large recent corruption scandals in the country, the government seems to have re-doubled its efforts to fight corruption, an effort, which has been gaining a lot of momentum in the past two to three years with several high-profile cases identified and investigated. Anti-money laundering efforts have also been gaining momentum as well.

Stimulus Plan


There has been talk of a stimulus plan, the first of which saw government support for the private sector to prevent the collapse of the non-oil sector due to COVID-19.

Investing in Kuwait


The KMEFIC FTSE Kuwait Equity UCITS ETF (KUW8) was the first UCITS ETF to provide targeted exposure to Kuwaiti securities. It is also the only UCITS ETF to be sponsored by a Kuwait asset manager, (Kuwait & Middle East Financial Investment Company).

Priced at 80bps, KUW8 includes 17 of the largest and most liquid securities trading on Borsa Kuwait and uniquely is focused away from the declining energy sector and towards sectors that stand to benefit most from ‘Vision 2030’ spending.

As such, KUW8 offers investors an efficient, liquid and diversified tool for investors who want to benefit from the potential impact of the upgrade.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Iran Faces Escalating Water Crisis as Protests Spread
More Than Half a Million Evacuated as Typhoon Kajiki Heads for Vietnam
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
×