Share trading in Kuwait started in 1952, when the first Kuwaiti shareholding company- the National Bank of Kuwait was established. The first law concerning the organization of the issue of shares and subscription was promulgated in October 1962.

In 1970, Law No 32 was issued on the regulation of stock trading in shareholding companies. In 1976, Ministerial Resolution No 61 led to the organization of dealings in Kuwaiti shareholding company shares.

In 1977, the bourse was opened and named the Kuwait Stock Exchange (KSE). It was, however, in August 1983 that the KSE was reorganized as an independent financial institution, by an Amiri decree, to be managed by the Exchange Committee and by the executive administration.

KSE became the first stock market in the world to use an Arabic Automated System on January 17 1996, when it implemented the automated trading system.

On September 10, 2000, the Foreign Investment Law was issued by the Government to allow foreigners to invest in the Kuwait Stock Exchange for the first time.