Report: 4.535 Billion Dinars Foreign Investment in Kuwaiti Banks Listed on Stock Exchange by End of Third Quarter

Kuwait City, Oct 17 (KUNA) -- Available data on foreign investment in Kuwaiti banks listed on the stock exchange as of the end of the third quarter of 2026 show that the absolute value of their investments in the sector declined to approximately 4.535 billion Kuwaiti dinars (about 13.967 billion US dollars), compared to around 5.182 billion dinars (about 15.960 billion dollars) at the end of 2025.

A report by Al-Shal Consultancy, released on Saturday, clarified that the decline in these investments amounted to approximately 12.5 percent, which is higher than the drop in the banking sector index and equates to about 14.37 percent of the sector’s market capitalization, down from 16.01 percent at the end of 2025.

The report noted that the Kuwaiti banking sector is the largest contributor to the stock exchange’s market capitalization, accounting for 60 percent of it, as was the case at the end of the first nine months of 2026. It is also the most attractive sector for indirect foreign investment and ranks second in liquidity among stock exchange sectors, capturing 27.7 percent of total liquidity during the first nine months of the current year.

It added that the banking sector index fell by approximately 2.7 percent, and the relative share of foreign holdings decreased in seven out of nine banks between the end of 2025 and the end of September 2026.

The report showed that foreign ownership concentration was limited to five banks. The highest absolute investments were in National Bank of Kuwait, at approximately 1.957 billion dinars (about 6.027 billion dollars), followed by Kuwait Finance House at around 1.947 billion dinars (about 5.996 billion dollars), and Bank of Al-Bilad at approximately 223.6 million dinars (about 688.6 million dollars).

It clarified that foreign ownership concentration amounted to approximately 146.2 million dinars (about 450.2 million dollars) in Gulf Bank, and around 121.3 million dinars (about 373.6 million dollars) in Warba Bank. This means that approximately 96.9 percent of foreign investments are concentrated in these five banks, leaving about 3.1 percent of those investments in other sector banks.

The report pointed out that National Bank of Kuwait leads in relative foreign ownership, accounting for 25.05 percent of its market capitalization, meaning their ownership is the highest. It was followed by Kuwait Finance House with 13.10 percent, which also ranks second in absolute ownership value. Gulf Bank ranked third in relative ownership at 10.47 percent and fourth in absolute ownership value. Kuwait International Bank ranked fourth in relative ownership at approximately 9.68 percent, while ranking seventh in absolute ownership value.

It indicated that the only relative increase in ownership during the period belonged to Kuwait National Bank, rising by approximately 0.50 percentage points, from about 7.44 percent at the end of 2025 to around 8.94 percent. The highest relative decrease in foreign ownership during the mentioned period belonged to Gulf Bank, where their ownership share dropped by approximately 3.23 percentage points, from about 13.70 percent to around 10.47 percent.

The report concluded by emphasizing that foreign ownership in the sector remains relatively stable, with some decline attributed to the drop in the sector index, some divestment, and it tends to rise or fall depending on the performance of the unit index plus recycling between banks or marginal divestment.

It said, "Foreign investors may have been affected by the intensity and duration of geopolitical events, as they were the only group whose value of sold shares exceeded the value of purchased shares, unlike their past behavior and that of local investors, meaning some liquidation and divestment took place." (End) M.K.A. / T.A.B.