"Al-Shal": 8.6 billion dinars in local and external public debt

The weekly “Ash-Shal” report stated that Kuwait’s total external and domestic public debt reached approximately 8.6 billion dinars, equivalent to 17.2% of the country’s gross domestic product (GDP). Ash-Shal noted that the total balance of domestic public debt instruments, including bonds and swap transactions since April 2016, rose by 2.75 billion dinars to reach 3.3 billion dinars by the end of June 2026, compared to its level at the end of June 2025, representing approximately 6.6% of the estimated 2026 GDP of around 50.1 billion dinars (EIU estimates), excluding external public debt.

Figures from the Central Bank of Kuwait’s monthly monetary statistical bulletin for June 2026, published on its website, indicate that the total volume of external public debt reached $17.250 billion as of July 23, 2026, or approximately 5.3 billion dinars.

The Central Bank’s bulletin noted that total credit facilities extended to residents by local banks at the end of June 2026 amounted to approximately 54.752 billion dinars, representing about 52.5% of total local bank assets, an increase of approximately 3.057 billion dinars, or a growth rate of about 5.9% compared to the end of June 2025. Total personal credit facilities reached approximately 20.347 billion dinars, accounting for about 37.2% of total credit facilities to residents, up from 19.579 billion dinars at the end of June 2025, with a growth rate of approximately 3.9%. Installment loans within this category totaled approximately 17.688 billion dinars, representing 86.9% of total personal credit facilities, while consumer loans amounted to approximately 2.041 billion dinars.

Credit facilities for the real estate sector reached approximately 11.088 billion dinars, or 20.3% of total credit facilities (10.535 billion dinars at the end of June 2025), with a growth rate of approximately 5.2%. Credit facilities for purchasing securities reached approximately 4.908 billion dinars, or 9% of total credit facilities (4.426 billion dinars at the end of June 2025). The trade sector received approximately 3.511 billion dinars, or 6.4% (3.858 billion dinars at the end of June 2025). The construction sector received approximately 2.786 billion dinars, or 5.1% (2.626 billion dinars at the end of June 2025). The industrial sector received approximately 2.509 billion dinars, or 4.6% (2.266 billion dinars at the end of June 2025). Non-bank financial institutions received approximately 1.817 billion dinars, or 3.3% (1.483 billion dinars at the end of June 2025).

The bulletin also indicated that total deposits at local banks reached approximately 56.164 billion dinars, representing about 53.8% of total local bank liabilities, an increase of approximately 4.812 billion dinars, or a growth rate of 9.4% compared to the end of June 2025. Deposits from private sector clients amounted to approximately 40.992 billion dinars, or 73%. Public institution deposits totaled approximately 9.536 billion dinars, and government deposits amounted to approximately 5.637 billion dinars. Of private sector clients’ deposits, approximately 38.758 billion dinars, or 94.6%, were in dinars, equivalent to approximately 2.234 billion dinars in foreign currencies for private sector clients as well.

As for the average interest rates on customer time deposits, in both Kuwaiti dinar and US dollar terms, at the end of June 2026 compared to the end of June 2025, the bulletin notes that the differential in average interest rates on customer time deposits remains in favor of the Kuwaiti dinar at the end of both periods. The differential stood at approximately 0.817 percentage points for one-month deposits, 0.846 percentage points for three-month deposits, 0.818 percentage points for six-month deposits, and 0.825 percentage points for 12-month deposits. In contrast, at the end of June 2025, the differential was approximately 0.885 percentage points for one-month deposits, 0.932 percentage points for three-month deposits, 0.932 percentage points for six-month deposits, and 0.917 percentage points for 12-month deposits.

The monthly average exchange rate of the dinar in June 2026 against the US dollar stood at approximately 307.220 fils per dollar, representing a decline of about -0.32% compared to the monthly average for June 2025, when it stood at approximately 306.247 fils per US dollar.