Kazakhstan Opens Direct Gateway to Middle Eastern Stock Markets for Investors
Kazakh investors will soon access Middle Eastern stock markets more easily. A new custody account, opened by the Kazakhstan Central Securities Depository (KCSD) with First Abu Dhabi Bank, removes previous barriers. The move aims to simplify transactions and cut costs for those trading in the region. Before this change, Kazakh investors relied on multiple foreign intermediaries to trade in the Middle East. The process added delays, raised expenses and complicated settlements. Now, the KCSD account enables direct access to exchanges in the United Arab Emirates, Saudi Arabia, Oman, Kuwait, Bahrain and Egypt.
The new system allows investors to settle trades on a T+1 basis, speeding up transactions. It also supports multi-currency operations, including the UAE dirham, Saudi riyal and Kuwaiti dinar. This flexibility is expected to encourage broader participation in regional markets. Beyond faster settlements, the initiative expands the range of available financial products. Kazakh investors can now trade equities, bonds, sukuk and exchange-traded funds (ETFs) across these markets. The KCSD describes the move as part of a wider plan to turn Kazakhstan into a regional financial and settlement hub. By reducing reliance on intermediaries, the system lowers costs and improves efficiency. Officials suggest this could strengthen financial links between Central Asia and the Middle East. Over time, it may also help Kazakhstan play a larger role in connecting regional financial networks.
The new custody account removes long-standing barriers for Kazakh investors. Direct access to six Middle Eastern markets, combined with faster settlements and multi-currency support, creates fresh opportunities. The change aligns with Kazakhstan’s push to become a key financial centre in the region.
