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Kuwait equities look attractive and represent an opportunity for investors in lead up to MSCI Inclusion in November

23rd September  

The 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. 

GCC equity markets delivered their 5th consecutive month of positive results in August, with the Kuwait All Share Index registering a gain of 6.6%[1]. Past performance is no guarantee of future performance.  

It 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 inflows. 

Abdullah 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.”

 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.   

When 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 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, 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 at risk.

For more information on the ETF, visit the KMEFIC FTSE Kuwait Equity ETF (KUW8) fund page.

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