Kuwait, 19 January 2026 – The United Nations Development Programme (UNDP) in Kuwait convened an introductory session on sovereign thematic bonds and sukuks, bringing together representatives from national economic and financial institutions, including government entities, commercial banks, and Islamic financial institutions, to build a shared understanding of these financing tools and their relevance to Kuwait Vision 2035 within the broader context of public finance strategy and fiscal planning. 

 Sovereign thematic bonds and sukuks are increasingly used worldwide to link public finance with environmental, social, and development priorities through transparent and well-governed public finance frameworks. Globally, UNDP works with governments to support the design of such instruments and has assisted more than 40 countries in mobilizing nearly USD 30 billion through sustainable and SDG-aligned financing initiatives that connect development priorities with capital markets and private sector participation. 

“Around the world, governments are using thematic bonds and sukuks to connect fiscal policy with long-term development goals while maintaining fiscal discipline and market confidence. This session reflects the importance of informed dialogue, drawing on global experience to strengthen understanding of how such tools can support national ambitions under Kuwait Vision 2035” said Ms. Emma Morley, UNDP Resident Representative in Kuwait. 

 During the session, participants were introduced to the main ideas behind sovereign thematic bonds and sukuks, including how sustainable and Islamic finance tools can be used to support national priorities when guided by clear rules and effective coordination among institutions. Regional and international examples highlighted the importance of transparency and strong governance in building confidence in these financing approaches.  

The discussion comes at a time when the region is already moving in this direction. Across the GCC, thematic sovereign bonds and sukuks have become an important source of financing for national priorities, with regional issuance exceeding USD 60 billion in 2024. This reflects a broader effort by governments to diversify funding sources and attract long-term investors including private and sustainability-focused investors, as part of broader public finance and debt management strategies. 

The session also aligned with Kuwait’s broader economic transformation agenda under Vision 2035, which emphasizes fiscal diversification and linking public investment to long-term development outcomes through effective fiscal planning and coordination across institutions. By building institutional understanding of sustainable and Islamic finance tools, the introductory exchange aimed to support informed dialogue on how such instruments could contribute to Kuwait’s development ambitions while maintaining financial stability. 

Looking ahead, UNDP will continue to support national stakeholders through global experience, technical knowledge, and policy-relevant insights that contribute to informed discussions on sustainable finance options that complement Kuwait’s existing fiscal and institutional frameworks and align with Kuwait’s long-term development vision. 

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About UNDP: UNDP is the leading United Nations organization fighting to end the injustice of poverty, inequality and climate change. Working with our broad network of experts and partners in 170 countries, we help nations to buildintegrated, lasting solutions for people and the planet. Learn more at undp.org or follow at @UNDP.  

For more information, please contact Nayla Bissat | nayla.bissat@undp.org