Kuwait Capital Markets Authority approves Gulf Sukuk Fund with capital of up to KWD 500 million

The Kuwait Capital Markets Authority has approved Gulf Capital Investment Company’s establishment of the Gulf Sukuk Fund for public subscription. The fund will have variable capital ranging from KWD 2 million to KWD 500 million, with units carrying a nominal value of KWD 10. Approval includes a temporary licensing stage to meet establishment requirements before the fund may begin operating. The offering comprises 50 million units, equivalent to KWD 500 million. Investors must subscribe for at least KWD 10,000, with additional subscriptions in multiples of KWD 100. The fund manager must contribute at least KWD 100,000, or its equivalent in other currencies, at establishment and may dispose of or redeem holdings only where their net value exceeds that minimum. Gulf Capital Investment Company and Gulf Bank will receive subscription applications. The temporary license runs for three months from the start of subscription and does not permit fund activities. It lapses if the requirements, including minimum capital, remain unmet, unless an extension for an equivalent period is requested before expiry and granted. Once minimum capital is met, the fund will receive a three-year license from registration. Its term is 15 years from registration, renewable for equivalent periods with approval from the authority and unitholders representing more than 50% of issued capital. The prescribed fees must be paid within 30 days of the decision’s issuance or the approval becomes void.