Central Bank: 7% growth in credit facilities directed to the business sector

The comprehensive banking survey conducted by the Central Bank on the sector at the end of the first half of 2026 showed that the cash portion of credit facilities extended to residents increased by KD 3.06 billion, a rise of 5.9 percent, bringing the total balance to KD 54.75 billion, compared to KD 51.69 billion at the end of June 2025.

The figures revealed that credit facilities granted to the business sector and personal credit facilities contributed 74.9 percent and 25.1 percent, respectively, to the increase in the value of the cash portion of credit facilities extended to residents.

The survey indicated that the cash portion of credit facilities granted to the business sector, which accounted for 62.8 percent of total credit facilities to residents, recorded an increase of KD 2.29 billion, or 7.1 percent, reaching a total value of KD 34.41 billion at the end of June 2026, compared to KD 32.12 billion in the corresponding month of 2025.

The most positive aspect highlighted by the Central Bank in the banking survey data was that the growing increases in figures over the past six months of the current year were driven by growth in most economic sectors, primarily an increase in the cash portion directed toward real estate and construction activities by KD 710 million, representing a growth rate of 5.4 percent; purchases of securities by individuals and institutions by KD 480 million, with a growth rate of 10.9 percent; oil and gas by KD 400 million, at a rate of 21.9 percent; and industry by KD 240 million, at a rate of 10.7 percent.

Regarding deposits and liquidity sources, the total balance of resident deposits rose by approximately KD 4.81 billion, or 9.4 percent, to reach KD 56.16 billion at the end of June 2026, compared to KD 51.35 billion for the same period last year.

According to the survey results, the Central Bank attributed the increase in deposit growth for public institutions to approximately KD 2.93 billion, or 44.4 percent, reaching KD 9.54 billion at the end of June, compared to KD 6.60 billion at the end of June 2025.

Additionally, the government deposit balance increased by KD 1 billion, or 28.2 percent, to reach KD 5.64 billion, compared to KD 4.40 billion in the first half of last year.

It is worth noting that the increase in the foreign assets balance was primarily due to higher loans to foreign banks and credit facilities to non-residents, as well as deposits at foreign banks, rising by 37.6 percent, 20.3 percent, and 15.4 percent, respectively.

It should be noted that private sector deposits remain the primary source of financing for local banks, accounting for 39.3 percent of total liabilities in local banks at the end of June 2026.

The value of transactions using plastic cards reached KD 10.98 billion during the second quarter of 2026, of which KD 10.31 billion were using cards within Kuwait and KD 660 million outside, compared to KD 11.47 billion in the second quarter of 2025, a decrease of KD 500 million, or 4.3 percent between the two quarters. This decline was due to a drop in transactions conducted via electronic websites by KD 210 million, a decrease of 4.8 percent, reaching KD 4.20 billion; also, ATM transactions decreased by KD 190 million, or 8.5 percent, to reach KD 2.07 billion; and point-of-sale (POS) transactions decreased by KD 90 million, or 1.9 percent, to reach approximately KD 4.70 billion.