Kuwait equities look attractive and represent an opportunity for investors in lead up to MSCI Inclusion in November
team behind the KMEFIC FTSE Kuwait Equity UCITS ETF says the outlook for
Kuwaiti equities is positive, and that the oil price war in Q1, coupled with
the impact of Covid-19, has created a buying opportunity ahead of the MSCI
inclusion in its emerging market category from November.
equity markets delivered their 5th consecutive month of positive results in
August, with the Kuwait All Share Index registering a gain of 6.6%.
Past performance is no guarantee of future performance.
says most of the ‘inclusion’ premium has been wiped off the value of Kuwaiti
equities, and that the decision by MSCI to delay its upgrade of Kuwaiti
equities from frontier to emerging market status has been a blessing in
disguise as it has allowed firms time to stabilize prior to the inclusion
Al-Busairi, the Director of KMEFIC FTSE Kuwait ETF, commented:
“As well as delivering growth, we have also seen greatly improved liquidity
in the Kuwait market, increasing by 45% last month. The Kuwaiti parliament has
also adopted a new law which will allow companies to opt for a settlement with
creditors or a restructuring plan before they are forced to declare bankruptcy.
This is a positive development as it aims to protect ailing companies and
attract foreign investors. Overall,
market sentiment for Kuwaiti equities is positive.”
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.
you trade Kuwait ETFs your capital is at risk
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
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, our Kuwait ETF offers potential investors
an efficient, liquid and diversified tool for investors who want to benefit
from the potential impact of the upgrade. When you trade ETFs your capital is
For more information on the ETF,
visit the KMEFIC FTSE Kuwait Equity ETF (KUW8) fund page.