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alraiEconomy By | كتب رضا السناري |

Kuwait Stock Exchange Enhances Institutional Appeal; Foreign Investments Surpass 7.7 Billion Dinars in First Half

Kuwait Stock Exchange Enhances Institutional Appeal; Foreign Investments Surpass 7.7 Billion Dinars in First Half

- Kuwaiti holdings constitute a fundamental pillar, accounting for over 85 percent of the market capitalization.

- The United States and its affiliated jurisdictions top the list of foreign investors with a total of 2.7 billion dinars.

- Qatar ranks second globally and first regionally with holdings nearing 855 million dinars.

- The United Kingdom and its affiliated jurisdictions rank third with combined investments nearing 666 million dinars.

- Bahrain ranks fourth with 653 million dinars, followed by Ireland with 398 million dinars, and the UAE in sixth place with 325 million dinars.

- The value of foreign investments in shares surged locally by 50 percent compared to its level in 2024.

- Ownership activity reveals liquidity inflows from investment entities representing 100 nationalities worldwide.

- Institutions have increased their dominance over Kuwait Stock Exchange activity to 70 percent, compared to 30 percent for individuals.

- The resilience of the national economy and monetary stability support the steadfastness of the local stock market.

- Continued attraction of long-term capital persists despite geopolitical challenges.

- The federal funds rate versus the dividend yield of the S&P Global Infrastructure Index.

Confirming the solidity of its established foundation and the confidence of global investment circles, the Kuwaiti Bourse recorded a cohesive investment performance by the end of the first half of 2026. The total market capitalization of direct holdings in listed companies reached approximately 53 billion dinars, distributed between a solid local base and growing foreign inflows, despite geopolitical changes and challenges and their direct economic impacts on the region.

These figures reflect the success of the Kuwaiti financial market in cementing its position as a major and safe investment hub on the strategic investment map, thanks to a flexible operating environment and prudent regulation.

Kuwaiti national investments form the core pillar and primary support for the strength and stability of the Kuwait Stock Exchange. According to data obtained by Al-Rai, the value of direct Kuwaiti holdings in the market reached approximately 45.3 billion dinars, representing nearly 85.5 percent of the total market capitalization.

This high concentration reflects the deep confidence of local investors and national institutions in the strength of listed economic sectors, particularly the banking and financial sector, thereby providing the Kuwaiti market with investment depth and robust protection against fluctuations and pressure waves in regional and international markets.

In the context of expanding the base of international investors, the value of foreign holdings in Kuwaiti shares rose by the end of the first half of 2026 to 7.7 billion dinars, accounting for 14.5 percent of the total market, up from 7 billion dinars recorded last September. This represents a 10 percent year-on-year growth, indicating the continued attraction of long-term capital amid geopolitical challenges.

This surge takes on double significance when compared to the 2024 closing levels, which stood at 5.3 billion dinars, achieving a growth rate exceeding 44 percent. This confirms that the movement of foreign capital toward Kuwait is characterized by permanence and institutional accumulation.

Market activity trends reveal notable investment maturity and a structural shift toward stability. Institutional investors accounted for the largest share, representing 70 percent of total market activity, while individual investors accounted for approximately 30 percent. This institutional dominance over trading confirms the market’s trend toward long-term investment and a reduction in the intensity of random speculation.

Regarding geographic concentration, the data showed the presence of investment inflows resulting from approximately 100 global nationalities, confirming the broadening scope of the Kuwaiti Bourse’s institutional appeal.

Among the top international investors, institutional investors from the United States and its territories ranked first, with combined investments totaling approximately 2.76 billion dinars, accounting for a standalone 5.2 percent of the market’s total market capitalization.

Qatari investments came in second globally and first in the Gulf region, valued at 855 million dinars, while the United Kingdom and its territories held third place among foreign investors with combined investments of 666 million dinars, representing 1.2 percent of the total market, followed by Bahrain with 653 million dinars.

Ireland followed with investments of approximately 398 million dinars, then the United Arab Emirates with around 325 million dinars, Switzerland with nearly 292 million dinars, Norway with 205 million dinars, and Singapore with approximately 203 million dinars. Japan invested 170 million dinars, and Luxembourg exceeded 158 million dinars. The data also revealed a diverse investment presence, including Saudi Arabia with around 119 million dinars, and the Sultanate of Oman with over 72 million dinars.

Kuwait’s consistent and active presence in the periodic reviews of global emerging market indices by MSCI, FTSE Russell, S&P, and Dow Jones directly contributes to the rebalancing of institutional flows and portfolios, generating high liquidity, as evidenced in recent standard trading sessions.

The continuous development of the trading environment and regulatory frameworks, in collaboration with the Capital Markets Authority and the Kuwait Stock Exchange, has enhanced transparency levels and attracted long-term investment capital seeking operational returns and stable growth rather than rapid speculation.

The ability of leading companies, particularly in the banking sector, to achieve rising profitability levels and robust capital bases has proven their capacity to absorb shocks and flexibly manage the repercussions of regional geopolitical disruptions.

In practice, the balanced growth in the ownership structure of the Kuwait Stock Exchange positively reflects on the valuations of listed companies, bolstering confidence in the market’s capital value, thereby positioning the Kuwait Stock Exchange as a leading regional financial hub capable of attracting and retaining high-quality investments.

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