CMA Report: Public Debt Accounts for 25.2% of GDP

The weekly report by Al-Shal Consulting referred to the Central Bank of Kuwait’s monthly monetary statistical bulletin for September 2026, published on its website, which stated that the total balance of local public debt instruments (including bonds and swap operations since April 2016) rose by KD 2.3 billion to reach KD 3.9 billion by the end of September 2026, compared to its level at the end of September 2025. This represents approximately 8.5 percent of the estimated 2026 GDP of KD 45.940 billion (EIU estimates), excluding external public debt.

According to details in the Al-Shal report, total external public debt reached approximately USD 21.75 billion by the end of September 2026. Adding the sovereign bonds issued by Kuwait last October, valued at USD 3.25 billion and not covered by the bulletin, raises total external public debt to approximately USD 25 billion, which is roughly KD 7.7 billion. When local debt is added, total public debt rises to approximately KD 11.6 billion, equivalent to about 25.2 percent of GDP.

The bulletin noted that total credit facilities for residents provided by local banks reached approximately KD 55.700 billion by the end of September 2026, representing about 52.6 percent of total local bank assets. This marks an increase of approximately KD 3.321 billion, or a growth rate of about 6.3 percent compared to the end of September 2025. Total personal facilities within this figure amounted to approximately KD 20.906 billion, or about 37.5 percent of total credit facilities for residents, up from KD 19.885 billion at the end of September 2025, reflecting a growth rate of approximately 5.1 percent. Installment loans within this category totaled approximately KD 18.205 billion, accounting for 87.1 percent of total personal facilities, while consumer loans amounted to approximately KD 2.068 billion.

Credit facilities for the real estate sector reached approximately KD 11.144 billion, representing 20.0 percent of total credit facilities (KD 10.796 billion at the end of September 2025), with a growth rate of approximately 3.2 percent. Credit facilities for purchasing securities totaled approximately KD 4.966 billion, or 8.9 percent of total credit facilities (KD 4.508 billion at the end of September 2025). Facilities for the trade sector amounted to KD 3.516 billion, or 6.3 percent (KD 3.823 billion at the end of September 2025). The construction sector received KD 2.932 billion, or 5.3 percent (KD 2.664 billion at the end of September 2025). The industrial sector obtained KD 2.583 billion, or 4.6 percent (KD 2.296 billion at the end of September 2025). Non-bank financial institutions received KD 1.844 billion, or 3.3 percent (KD 1.627 billion at the end of September 2025).

The bulletin also indicated that total deposits at local banks reached approximately KD 57.530 billion, representing about 54.3 percent of total local bank liabilities. This reflects an increase of approximately KD 5.609 billion, or a growth rate of 10.8 percent compared to the end of September 2025. Private sector clients accounted for approximately KD 41.188 billion, or 71.6 percent. Public institution deposits totaled KD 10.397 billion, and government deposits amounted to KD 5.946 billion. Of the private sector clients' deposits, KD 38.886 billion (94.4 percent) were in Kuwaiti dinars, equivalent to approximately KD 2.302 billion in foreign currencies.

Regarding the average interest rates on customer time deposits in both the Kuwaiti dinar and the US dollar at the end of September 2026 compared to the end of September 2025, the bulletin notes that the differential in average interest rates on customer time deposits still favors the dinar at the end of both periods. The differential stood at approximately 0.723 percentage points for one-month deposits, 0.761 percentage points for three-month deposits, 0.722 percentage points for six-month deposits, and 0.709 percentage points for 12-month deposits. In contrast, at the end of September 2025, the differential was approximately 0.796 percentage points for one-month deposits, 0.763 percentage points for three-month deposits, 0.765 percentage points for six-month deposits, and 0.784 percentage points for 12-month deposits. The monthly average exchange rate of the dinar against the US dollar in September 2026 stood at approximately 307.145 fils per dollar, representing an increase of about 0.73 percent compared to the monthly average in September 2025, when it was approximately 304.920 fils per dollar.