Business Sector Financing Exceeds KD 34.15 Billion

The Kuwaiti banking sector continued to play its pivotal role in financing various economic activities, with total business sector financing balances held at local banks rising to approximately KD 34.15 billion by the end of April 2026, compared to KD 31.42 billion in the same period of 2025. This represents an annual increase of KD 2.73 billion, reflecting growth of 8.7%.

Data from the Central Bank of Kuwait further showed that business financing has grown since the beginning of the current year, rising from KD 33.15 billion at the end of December 2025 to KD 34.15 billion by the end of April 2026. This marks an increase of nearly KD 1 billion over just four months, with a growth rate of approximately 3%.

This performance underscores the continued credit activity of local banks and their ability to provide financing to various economic sectors despite the uncertainty caused by regional geopolitical developments in the early months of the year, including the US-Israeli-Iranian war and subsequent malicious Iranian attacks on Kuwait and Gulf states. These developments highlight the resilience of the Kuwaiti banking system and its role in supporting the national economy and ensuring the continuity of projects and investments.

It is worth noting that the increase in the cash portion of credit facilities used by residents was primarily driven by the business sector, which accounted for approximately 79.9% of this rise, while personal credit facilities contributed 20.1%. The cash portion of financing granted to the business sector constituted 62.9% of total credit facilities provided to residents, reflecting the relative weight of economic activity financing within the structure of bank credit.

Data indicates that the real estate sector continued to hold the largest share of financing granted to the business sector. Financing balances directed to this sector reached approximately KD 10.96 billion by the end of April 2026, compared to KD 10.41 billion in April 2025, an annual increase of KD 555.2 million. This reflects sustained real estate activity and the continued financing of development and investment projects.

The crude oil and gas sector also recorded notable growth, with financing granted to it rising to approximately KD 2.24 billion, compared to KD 1.72 billion a year earlier, an increase of KD 520.8 million. This reflects ongoing spending and investments related to the energy sector and oil projects.

In the other services sector, financing rose to KD 4.19 billion, compared to KD 3.83 billion in April 2025, an increase of KD 353.6 million. Meanwhile, financing directed to non-bank financial institutions increased to KD 1.79 billion, up from KD 1.44 billion, representing an increase of KD 350.6 million.

The industrial sector also recorded clear growth, with financing balances rising to KD 2.34 billion by the end of last April, compared to KD 2.15 billion in the same period last year, an increase of KD 192.7 million. Financing directed to the construction sector rose to KD 2.85 billion, up from KD 2.69 billion, an increase of KD 156 million, reflecting the continued execution of construction and development projects in the local market.

Financing provided to banks also increased to KD 1.31 billion, compared to KD 1.16 billion in April 2025, an increase of KD 149.8 million. Meanwhile, financing directed to public services jumped to KD 208 million, up from KD 110 million, an increase of approximately KD 98 million.

Among the sectors recording strong growth was the securities purchase category, which rose to KD 4.71 billion, compared to KD 4.05 billion a year earlier, an increase of KD 665.5 million. This reflects the growing investment activity and financing of portfolios and investments related to financial markets.