CmaBoardReleases
Back to Search
CMA LAW: Press Release: The Capital Markets Authority Issues Resolution Regarding Issuance of Investment Controls for Multi-Asset Funds and Amendment to Some Provisions of the Investment Controls for Other Funds
Date Publish
15 February 2026
Strength, Flexibility, and Development Based on Solid Foundation
Kuwait, January 15, 2026 – The Capital Markets Authority (CMA) issued its Resolution No. (18) of 2026 Regarding Issuance of Investment Controls for Multi-Asset Funds and Amendment to Some Provisions of the Investment Controls for Other Funds, which included the following:
- Issuance of Investment Controls for Multi-Asset Funds.
- Amendment to some provisions of Investment Controls for Funds.
- Amendment to some provisions of marketing the Collective Investment Scheme Incorporated Outside the State of Kuwait.
as part of implementing its strategic objective related to the development of legislative and regulatory frameworks in accordance with the latest directives in capital markets, and in line with the international best practices in this field.
This amendment interprets the CMA’s vision which aims to balance the legislative stability in accordance with the latest developments. This is based on the principles of strength and flexibility and establishes a developed legislative environment that supports the investment funds sector and the sustainability of its activity.
Based on the aforementioned, the investment fund acts as a tool to accumulate the investors’ funds and invest them in various financial instruments both inside and outside the State of Kuwait in order to achieve diversification and reduce risks. The CMA places great emphasis on the establishment of legislative and regulatory environment that support these funds and develop their provisions, which raises their efficiency and contribute to the market growth and sustainability.
In this context, the CMA confirmed that the process of developing the controls is a result of an overall revision of the current controls and analysis of the international experiences and practices to achieve the following results:
- Supervisory model that adds larger relative flexibility to fund managers.
- Support the establishment of new funds in the local market.
- Raise capital of the current funds and support the attraction of new investments.
Accordingly, these amendments form as a new phase of the legislative and regulatory development of collective investment schemes and the outcome of efforts of CMA employees and specialized technical departments that worked as one team to establish an advanced investment environment characterized by efficiency, flexibility, and sustainability, in line with Kuwait Vision 2035 to build a diversified economy based on innovation and investment.
In the same context, the CMA has conducted a comprehensive survey to all related parties concerning the proposed amendments. The comments received totaled 189 from 14 external entities, which were carefully reviewed and analyzed by specialized teams, and the outcomes of which were reflected in the final amendments of the controls. This emphasizes the CMA’s participative and transparent approach in the development of its legislative system.
The amendments included clarification and expansion of the approach of permitted investment instruments, to include the following:
- Debt instruments classified according to the Investment Grade.
- Debt instruments of initial rating or anticipated rating or those rated according to instrument source.
- Fixed income ETFs.
- Money Markets ETFs.
- (Tier 2) Bonds/Sukuk.
- Derivatives contracts and options outside the State of Kuwait.
The amendments also included an increase in the percentages of investment, positioning, and borrowing in some types of funds, according to the nature of each one of them, which enhances the operational stability and diversifies the approach of investment options available to investors and fund managers.
The amendments included more than (48) material amendments, the most prominent of which is stated according to the type of fund:
|
Investment Controls for Securities |
|
|
1 |
Increasing the percentage in which one share exceeds the market value, field, sector, or index from 3% to 5%. |
|
2 |
Permitting the excess in an additional value of 5% if the excess resulted from an increase in the price of the same listed share. |
|
3 |
Facilitating opportunities for investment in derivative contracts and options outside the State of Kuwait. |
|
4 |
Increasing the maximum limit for borrowing from 10% to 15% of the Fund’s net asset value. |
|
Investment Controls of Money Market |
|
|
5 |
Facilitating opportunities for the fund to invest in debt instruments at 15%. |
|
6 |
Increasing the positioning percentage of investment in funds from 15% to 25% of the Fund’s net asset value. |
|
7 |
Removing the restriction of the fund’s investment in money market funds and permitting the fund to invest debt instrument funds and Money Markets ETF. |
|
8 |
Facilitating opportunities for investment in derivative contracts and options for the purpose of hedging both inside and outside the State of Kuwait. |
|
9 |
Adjusting the calculation of the weighted average maturity to be in line with the instruments developed in the controls. |
|
10 |
Increasing the maximum limit for borrowing from 10% to 15% of the Fund’s net asset value and not requiring borrowing to cover redemption requests. |
|
Investment Controls of Debt Instruments |
|
|
11 |
Changing the required rating to allow investment according to Investment Grade and not BBB. |
|
12 |
Facilitating opportunities for investment in debt instruments of initial rating or anticipated rating or those rated according to instrument source (at subscription). |
|
13 |
Increasing the investment percentage from 25% to 35% in the investment instruments rated below the Investment Grade and/or unrated and/or debt instruments of initial rating or anticipated rating or those rated according to instrument source at subscription. |
|
14 |
Increasing the positioning percentage of investment in funds from 15% to 25% of the Fund’s net asset value. |
|
15 |
Facilitating opportunities for investment in all types of funds. |
|
16 |
Facilitating opportunities for investment in in (Tier 2) Bonds/Sukuk in 10% according to specific controls. |
|
17 |
Facilitating opportunities for investment in derivative contacts and options for the purposes of hedging both inside and outside the State of Kuwait. |
|
18 |
Increasing the maximum limit for borrowing from 10% to 15% of the Fund’s net asset value and not requiring borrowing to cover redemption requests. |
|
Investment Controls of the Real Estate Funds |
|
|
19 |
Adding larger flexibility to investment in single real estate as a percentage of the net asset value that is centered on the opportunities presented by the fund manager to the unit holders who decide, by themselves and as a majority, whether the positioning in such real estate is for their interest. |
|
20 |
Facilitating opportunities for in kind participations in the fund. |
|
21 |
Increasing the borrowing percentage from 40% to 50% of the Fund’s net asset value and deleting the restriction of investment in real estate, so the borrowing will be for any investment in general. |
|
22 |
Increasing the positioning percentage of investment in funds from 15% to 25% of the Fund’s net asset value. |
|
23 |
Removing the restriction of the fund’s investment in real estate funds and/or money market funds or equity funds related to real estate and facilitating opportunities for investment in all other types of funds. |
|
Investment Controls of Real Estate Income-Generating Fund (Traded) |
|
|
24 |
Facilitating opportunities for in kind participations in the fund after incorporation. |
|
25 |
The repeated provisions of in-kind participation stipulated in Article 2-4-1 of Module Thirteen (Collective Investment Schemes) were deleted. |
|
26 |
Extending the period for completing the procedures for listing in the Exchange after incorporation to become 90 days from the date of receiving the latest license for incorporation instead of 60 days, according to the current provision. |
|
27 |
Deleting the mandatory requirement of appointing a specialized company in real estate management to become permissible based on the nature of invested real estates and measurement of fund manager. |
|
28 |
Decreasing the income-generating period for the invested real estates to become six months instead on the previous provision of one year. |
|
29 |
Reducing the value of a single local real estate excluded from positioning in 30% of the fund’s net asset value to become KWD 10 million instead of KWD 30 million. |
|
30 |
Including other exceptions to the current positioning percentage in a single local real estate, in which the investment opportunity will be presented to the unit holders and their approval of such excess shall be granted. |
|
31 |
Facilitating opportunities for the fund to invest in real estate outside the State of Kuwait in not more than 25% of its net asset value. |
|
32 |
Facilitating opportunities for obtaining written or electronic approval of the unit holders as alternatives of approvals through unit holders assemblies upon purchasing or selling real estates that are above or without evaluations. |
|
33 |
Unifying the context of the item of the provisions of purchasing real estate with the other contexts stipulated in the Bylaws. |
|
34 |
Permitting investment in the right to the usufruct (Intifa’a) inside the State of Kuwait, which are signed with individuals and private companies. |
|
35 |
Removing the mandatory requirement of insuring the fund’s real estates with insurance companies to become permissible based on the nature of invested real estates and measurement of fund manager. |
|
36 |
Permitting the appointment of one or more market maker in the Investment Controls of Real Estate Income-Generating Fund (Traded). |
|
37 |
Some additional and repeated provisions were deleted from the evaluation section. |
|
38 |
Removing the restriction of investment in real estate, so the borrowing will be for any investment in general |
|
38 |
Removing the restriction of the fund’s investment in money market funds and/or Real Estate Income-Generating Fund (Traded) and facilitating opportunities for investment in securities funds. |
|
Investment Controls of the Fund of Funds |
|
|
40 |
Explanatory amendment of the current context of investment in three funds as a minimum. |
|
41 |
Increasing the percentage of the fund’s investment in another investment fund from 40% to 50% of the net asset value. |
|
42 |
Increasing the percentage of the fund’s investment in private funds from 10% to 15% of the net asset value. |
|
43 |
Increasing the percentage of the fund’s investment in funds managed by one manager from 40% to 50% of the net asset value. |
|
44 |
Facilitating opportunities for investment in listed shares and debt instruments not more than 10% of its net asset value. |
|
45 |
Increasing the limit of borrowing from 10% to 15% of the fund’s net asset value. |
|
Investment Controls of Venture Capital Funds |
|
|
46 |
Increasing the positioning percentage in listed shares from 15% to 20% of the fund’s net asset value. |
|
47 |
Removing the restriction of the fund’s investment in venture capital funds and money market funds only and facilitating opportunities for investment in all other types of funds. |
|
48 |
Increasing the positioning percentage of investment in funds from 15% to 25% of the fund’s net asset value. |
On the other side, the resolution included the addition of investment controls of a new type of fund, which is the multi-asset fund. It is defined as an investment fund with the main objective of investing the fund’s money to achieve various investment objectives through distributing them in different securities, real estate assets, money market instruments or otherwise specified by the Executive Bylaws by several types of assets for diversified and sound risk management and to maximize the revenues related to investment in the one-type asset. The main features of this type of funds are as follows:
|
|
|
|
General Controls |
The Fund's Articles of Association shall state the types of assets that support its investment objectives and determine the minimum and maximum limits for each type of asset in the Fund, provided that the maximum limit for any single asset type does not exceed 60% of the Fund's net asset value. |
|
The Fund may not own more than 10% of all securities issued from the same issuer. |
|
|
15% borrowing limit. |
|
|
The Fund may not invest more than 10% inside and outside the State of Kuwait of its net asset value in financial derivatives contracts and options. |
|
|
Securities |
The position is 10% of investment in a single listed share is of the fund’s net asset value, and setting special cases to exceed the limit. |
|
The position is 5% of investment in an unlisted share of the fund’s net asset value. |
|
|
Money Instruments |
Permitting to invest in Bonds and Sukuk issued by GCC governments. |
|
The Fund may invest in a maximum of 20% of the net asset value of any Bonds and Sukuk whose credit rating is not less than (Investment Grade). This percentage may also include debt instruments with an initial rating, projected rating, or rating in accordance with the instrument's issuer upon subscription. |
|
|
Investment of the fund assets in deposits or their equivalents at the Islamic banks with one entity shall not exceed 25% of the fund’s net asset value. The Authority may approve an exception. |
|
|
Debt Instruments |
10% is the position of a single debt instrument. |
|
20% as a maximum limit of the fund’s net asset value to invest in Bonds and Sukuk rated below Investment Grade, and debt instruments with an initial rating, projected rating, or rating in accordance with the instrument's issuer upon subscription. |
|
|
5% limit of position in the Fund’s net asset value in a single instrument that is below the Investment Grade. |
|
|
The Fund’s investment in debt instruments issued by a single issuer should not exceed 10% of the Fund’s net asset value. |
|
|
The Fund’s investment position of a single debt instruments should not exceed 10% of the Fund’s net asset value. |
|
|
The Fund’s investment should not exceed 10% of the fund’s net asset value of any Bonds and Sukuk of the second segment of the supporting capital Tier 2. |
|
|
The prescribed limits may be exceeded by 5% of the Fund’s net asset value after the investment period. |
|
|
Real Estate Assets |
The investment position of a Fund’s single real estate is 30% of net asset value, including some exemptions. |
|
Permitting investments in Real Estate development. |
|
|
Permitting incorporating companies inside and outside the State of Kuwait for the purpose of real estate investments. |
|
|
25% additional borrowing limits of the Fund’s net asset value. |
|
|
Permitting buying and selling higher or lower than the evaluation, subject to specific conditions. |
|
|
Investment in Funds |
Investments position made in a single Fund may not exceed 15% from the net asset value of the fund. |
|
Investments position made in a Private Funds may not exceed 10% from the net asset value of the fund. |
|
|
Investments position made in Funds managed by one manager may not exceed 15% from the net asset value of the Fund. |
In addition, the resolution included amendments to some provisions of marketing the Collective Investment Schemes incorporated outside the State of Kuwait as follows:
|
Marketing the Collective Investment Schemes incorporated outside the State of Kuwait |
The addition of the licensed person to practice the activity of Investment Advisor as one of the persons that can submit marketing application. |
|
Amendment to Application for the Marketing of Collective Investment Scheme Units Incorporated Outside the State of Kuwait |
|
|
The addition of Application Form for the Prospectus of Marketing Collective Investment Scheme Incorporated Outside the State of Kuwait |
|
|
The addition of the appendix of Institutional Marketing of the Collective Investment Scheme Units Incorporated Outside the State of Kuwait, which means marketing, offering, arranging, or coordinating the participation in one or more investment funds or other Collective Investment Schemes incorporated outside the State of Kuwait only for Professional Client by Nature, according to the definition set forth in Module One (Glossary) of the Executive Bylaws. |
|
|
Adding fee for institutional marketing of a Collective Investment Scheme incorporated outside the State of Kuwait. |
Finally, the CMA invites all related parties to view the final controls approved of the Executive Bylaws and work according to its provisions through visiting the following link:
Click here to visit the website:
Ends-
Notes to Editors:
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010. Pursuant to the Law, the CMA shall regulate and supervise the securities activities, achieve transparency and fairness, observe listed companies’ execution of Corporate Governance regulations, and protect investors from unfair practices which violate the CMA's Law.
Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs related to securities activities.
Disclaimer: The information provided on this page is for reference purposes only, visitors are encouraged to review and understand the information provided in the official scanned document attached in the link above (if available). The CMA endeavors to ensure that the information on this page is complete and accurate, but the CMA does not guarantee the quality, accuracy, or completeness of any content at any time. In the event the information on this page is different from the content in the official scanned document attached in the link (if available), the official scanned document attached shall take precedence.
