"The Center": Positive performance for Kuwait Stock Exchange in August... and noticeable improvement in real estate activity
Kuwait Financial Centre (Markaz) stated in its August 2026 market performance report that the Kuwait Stock Exchange closed the month on a positive note, with the general market index rising by 1.6%, driven by a 5.7% increase in the main market index, while the first market index rose by 0.8%.
On a sectoral level, the basic materials and consumer goods sectors recorded monthly gains of 14% and 9.5%, respectively. The banking sector shares remained largely stable, posting a slight increase of 0.1%, amid mixed performance among leading stocks. National Bank of Kuwait shares rose by 1.5%, while Kuwait Finance House shares declined by 1.5%. Kuwait National Bank shares surged by 12.7% following the bank’s announcement of a 17.9% profit growth in the first half of 2026. Additionally, Boubyan Bank shares rose by 3.1% after the Capital Markets Authority approved the issuance of additional first-tier capital sukuk worth up to 100 million dinars.
Boubyan Petrochemicals Company topped the list of the best-performing stocks in the First Market during August, posting gains of 17.7%, supported by positive second-quarter operational results.
The report noted that the Kuwaiti economy maintained its resilience in the face of regional geopolitical challenges, benefiting from strong sovereign financial conditions, continued credit expansion, and improved activity in the real estate market. During the first half of the year, Kuwait Oil Company signed 129 contracts worth approximately 2.2 billion dinars, aimed at increasing production capacity, accelerating exploration and drilling activities, and upgrading oil field infrastructure. In a sign of the country’s strong financial position, Fitch Ratings affirmed Kuwait’s sovereign credit rating at ‘AA-’ with a stable outlook, citing the nation’s substantial financial reserves.
Real estate activity strengthened in July, with sales rising 24% month-on-month to 395 million dinars, reaching a three-month high, supported by growth in the commercial and investment sectors.
Growth in the local credit market remained at healthy levels, despite a slight decline in July, influenced by a 2% month-on-month drop in lending to financial institutions. Credit extended to the business sector rose by 0.7%, while credit to individuals increased by 1.2% month-on-month. Furthermore, resident deposits rose by 9.8% year-on-year in July, supported by inflows from both the public and private sectors.
The report indicated that Gulf markets recorded strong performance in August, with the S&P Composite Gulf Markets Index rising by 3.8%, supported by renewed diplomatic efforts to de-escalate regional tensions and emerging signs of progress toward reopening the Strait of Hormuz. The Saudi ‘Tadawul’ index rose by 5.1%, driven by gains in major leading stocks. The Dubai Market Index also increased by 0.7%, supported by gains in major bank shares. Emirates NBD shares rose by 0.3% following its acquisition of HSBC’s retail banking operations in Egypt. Abu Dhabi Market shares also closed August on a positive note, rising by 0.9%, as strong corporate results continued to bolster investor confidence.
Gulf economies faced pressure on economic activity due to geopolitical developments, trade challenges, and weak performance in the oil sector, while resilient non-oil sectors and strong financial positions continued to support Gulf economies.
The “Center” report noted that US and global markets posted strong gains in August, supported by positive second-quarter 2026 earnings results, particularly among major technology companies benefiting from sustained demand related to artificial intelligence.
The S&P 500 rose 2.6%, the Morgan Stanley Global Index climbed 2.5%, and the tech-heavy Nasdaq Composite advanced 4.2%, recovering after two consecutive months of declines. SpaceX shares surged 32.6% during August, bolstered by positive second-quarter results that showed a 92% year-on-year revenue growth.
In its conclusion, the “Center” reported that international investors are closely monitoring US inflation and labor market data for signs of the Federal Reserve’s next policy moves, as persistent price pressures keep the possibility of interest rate hikes on the table. Global equities are also likely to be influenced by the momentum in the technology sector and catalysts linked to mega-cap companies, including the anticipated initial public offering of Anthropic. Meanwhile, Gulf markets are expected to be affected in the coming month by developments in oil markets, potential shifts in the ongoing geopolitical conflict, and updates on US monetary policy.
