3.59 billion dinars in import financing from banks in the first half of 2026

Kuwait officials have continued to see local banks playing a pivotal role in supporting import activity and providing the necessary payment and financing channels for Kuwaiti imports. Total financing for Kuwaiti imports paid through local banks reached approximately 3.59 billion dinars during the first half of 2026, according to data from the Central Bank of Kuwait regarding the local activities of local banks and their branches within the State of Kuwait. A detailed reading of monthly data reveals that import financing activity during the first six months of the year showed a clear divergence between the first and second quarters, recording relatively high levels in January and February before beginning to decline in March and April. Meanwhile, banks continued to provide various financing and payment instruments to importers, including letters of credit, collection bills, and other payment orders.

Compared to the first half of 2025, when total import financing amounted to 4.36 billion dinars, financing declined by 767.9 million dinars, or 17.61%, during the corresponding period in 2026. Banks had financed imports valued at 2.17 billion dinars in the first quarter of 2025 and 2.18 billion dinars in the second quarter.

In terms of currencies, the US dollar maintained a significant lead as the most used currency for import financing during the first half of 2026, totaling 2.91 billion dinars, accounting for 81.22% of the total financing of 3.59 billion dinars. Other currencies ranked second with a value of 344.7 million dinars, equivalent to 9.59% of the total. The euro came in third with a value of 140.5 million dinars and a share of 3.91%. The UAE dirham ranked fourth with financing totaling 82.3 million dinars and a share of 2.29%, followed by the Saudi riyal at 73.3 million dinars (2.04%), the British pound at 13.7 million dinars (0.38%), the Japanese yen at 13.6 million dinars (0.38%), and finally the Swiss franc at 6.7 million dinars, representing approximately 0.19% of the total. This composition underscores the continued widespread dominance of the US dollar in Kuwaiti import financing transactions through the banking sector, as its value alone exceeded four-fifths of the total financing during the first half.

Payment orders at the forefront

Regarding import financing and settlement instruments, other payment orders accounted for the largest share during the first half of 2026, reaching approximately 2.39 billion dinars, or about 66.75% of total import financing during the period. Letters of credit ranked second with a total value of 1.094 billion dinars, representing approximately 30.44% of total financing, while collection bills amounted to 101.1 million dinars, equivalent to about 2.81%.