Financial competition among banks inside and outside Kuwait

Listed companies have secured substantial credit facilities at high rates since the beginning of the year, with considerable flexibility from local banks. Loans and facilities reached record amounts, some exceeding 157 million dinars. Meanwhile, facilities directed toward investment and securities trading also witnessed significant activity with positive growth rates, with the current balance nearing 5 billion dinars.

In the same context, the past period saw intense competition in banking financing. Gulf and foreign banks entered the competitive arena, offering facilities to some companies and presenting proposals under review for others, particularly in various currencies for certain activities in external markets, whether regional or global.

The rush by regional, Gulf, and global banks toward Kuwaiti companies reflects confidence in these firms, their future operational activities, and their operational processes. Additionally, asset quality and cash flow volumes among a segment of companies serve as a major attraction for competing foreign banks.

Among the most important and prominent benefits of abundant liquidity is the preservation of assets at fair price levels, further strengthening market confidence, especially during the challenges the region is currently facing. Liquidity offerings also encourage companies to pursue available opportunities, both locally and regionally, and support expansionary investment spending plans to build investments with future prospects and objectives.

Notably, initiatives by foreign banks and their provision of liquidity offers to local companies reflect the highest levels of confidence in the local market. They also demonstrate these entities’ desire to establish commercial relationships and partnerships. From their perspective, the current period is the best time to open channels of cooperation and accept a temporary risk margin in order to build long-term relationships.