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Kuwait is fast developing as an international capital market. A strong Kuwaiti Dinar an active stock exchange market and a host of investment companies syndicating loans and underwriting KD bond issues are considered a prerequisite for the development of such a market . Furthermore, the general political, economic and financial stability of the country has contributed to the emergence of Kuwait as one of the leading financial centers in the Arab Gulf. What follows is a brief survey of the historical development of the instruments and institutions that make up the Kuwait capital market.