Under Book 11, Kuwait’s new Capital Markets Authority (“CMA”) Bylaws provide the regulatory framework that governs bonds and sukuk. At the outset, it is important to note that chapter 7 of Book 11 sets out the manner in which a special purpose company (“SPC”) can issue bonds or sukuk, or engage in other CMA-approved activities related to the issuance of bonds or sukuk. The SPC will be able to issue bonds or sukuk through public subscription or private placement, provided that it obtains the approval of the CMA. However, the shares of the SPC itself may not be offered to the public and the underlying obligor must provide an undertaking that it will assume all of the liabilities of the SPC.