Boursa Kuwait leads the discussion on building a sustainable and active market for exchange-traded funds

(MENAFN- MENAFNEditorial) Kuwait City, 31 August 2026: As part of its ongoing efforts to develop the Kuwaiti capital market, diversify its products and enhance its trading efficiency, Boursa Kuwait hosted a webinar entitled “Building an ETF Ecosystem: From Regulatory Framework to Market Growth,” in collaboration with CFA Society Kuwait on Monday, 24 August 2026.
The webinar comes at a new phase in the development journey of exchange-traded funds (ETFs) in Kuwait, where efforts have shifted from completing the regulatory framework and operational infrastructure to exploring the requirements for market growth and sustainability.
Witnessing the participation of more than 120 representatives from asset management firms, financial brokerage companies, investment institutions and regulatory authorities, the webinar addressed the practical requirements for building an active and efficient ETF market and showcased international best practices and experiences in this field.

From the fundamentals to an integrated ETF ecosystem
The webinar was led by Mr. Anthony Sassine, Founder and Chief Executive Officer of OCÉANE Invest, who delivered a presentation covering the integrated ecosystem of ETFs and the roles of its key participants, including regulatory authorities, exchanges, fund managers, authorized participants, market makers, custodians and brokers.
Mr. Sassine also explored the global evolution of ETFs and highlighted key trends in the sector, as well as the mechanics of these funds through creation and redemption processes in primary and secondary markets as well as their role in supporting pricing efficiency and the convergence of unit trading prices with net asset value.

ETF liquidity and trading quality
The session also delved into the key factors affecting ETF liquidity, emphasizing that trading volume alone does not necessarily reflect quality. Metrics such as the bid-ask spread and market depth provide more precise indicators of execution ease and pricing efficiency, while effective market making also supports trading continuity and narrow bid-ask spreads.
Mr. Sassine emphasized that market efficiency depends on the integration of roles among various participants in the ETF ecosystem, ensuring easy access to products and efficient trade execution, as well as providing effective distribution channels for investors.

Future opportunities for the ETF market
The webinar explored the prospects for developing ETFs, including Sharia-compliant, active and mutually listed funds. It also examined opportunities to develop products targeting specific sectors or asset classes, aiming to expand investment options and support greater market diversification within the applicable regulatory framework.
It also highlighted the importance of selecting appropriate benchmark indices and ensuring tracking efficiency, as well as managing the deviation between fund performance and the benchmark index, known as a "Tracking Error," as an important element in assessing product quality and attractiveness to investors, alongside liquidity, pricing efficiency, and cost.
The session concluded with a direct question-and-answer session that enabled attendees to interact with the speaker and benefit from his practical expertise.
"Financial literacy and investment education represent an essential part of Boursa Kuwait’s approach to market development. As the range of available investment instruments evolves, the importance of empowering market participants to understand product characteristics, pricing mechanisms, and trading processes increases, supporting more conscious and efficient investment decisions,” said Mr. Naser Meshari Al-Sanousi, Senior Director of Marketing and Corporate Communications at Boursa Kuwait.
“The success of ETFs is not measured solely by the number of listings, but by their ability to support sustainable activity, provide a trading environment characterized by liquidity and efficiency and broaden the investor base,” he added.
“Boursa Kuwait continues to work with various stakeholders in the market apparatus to transition from product readiness to building a market capable of growth and sustainability, keeping pace with international best practices."
Meanwhile, Mr. Anthony Sassine praised the Kuwaiti capital market, saying, "Kuwait possesses the necessary elements to build an active ETF market, particularly following the establishment of appropriate regulatory frameworks for these instruments.”
“The next phase involves strengthening the foundations for market activity, including developing market-making capabilities, expanding distribution channels, and raising investor awareness, thereby enhancing trading efficiency and enabling investors to enter and exit the market with ease and at fair prices," he added.

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