Kuwait Investment: 53.6 Billion Dinars as Market Capitalization at End of September

A report by the Investment Research Unit at Kuwait Investment Company recorded divergent performance among Gulf stock markets in September 2026, with most markets facing selling pressure due to escalating regional geopolitical risks.

The report noted that the Dubai Financial Market led Gulf markets in gains for the month, rising by 2.13 percent, followed by the Abu Dhabi Securities Exchange with gains of 0.63 percent. Meanwhile, most other markets declined: the Saudi Tadawul Index fell by approximately 6.17 percent, the Qatar Stock Exchange by 5.73 percent, and the Bahrain Bourse by 1.46 percent. The Kuwait Stock Exchange’s First Market Index dropped by 1.3 percent, while the General Market Index fell by 1.33 percent. Consequently, the S&P GCC Index declined by 3.4 percent in September, amid reduced risk appetite and higher financing costs.

The report highlighted a noticeable improvement in liquidity in some markets during September. Trading value in the Kuwait Stock Exchange rose by 37.8 percent, in Dubai by 18.4 percent, and in Abu Dhabi by 11.5 percent. The Saudi market accounted for approximately 47 percent of total Gulf liquidity, followed by the Kuwait Stock Exchange at around 18 percent, Abu Dhabi at 16 percent, and the Dubai Financial Market at 9 percent.

The report stated that the Kuwait Stock Exchange experienced a decline in circulating liquidity levels during the period, driven by profit-taking activities and investor caution regarding geopolitical developments and rising investment risk levels. Total trading volume reached 15.6 billion dinars, a 19 percent decrease compared to the same period in 2025. By sector, banks accounted for 27.8 percent of total market liquidity, equivalent to approximately 4.34 billion dinars, with the bulk concentrated in shares of Kuwait Finance House, National Bank of Kuwait, and Gulf Bank, with trading values of approximately 1.67 billion, 1.11 billion, and 359 million dinars, respectively.

Conversely, financial services companies and real estate firms recorded trading values of 4.44 billion and 2.56 billion dinars, respectively, capturing 28.4 percent and 16.4 percent of the total trading value in the bourse.

The report concluded that trading activity in the Kuwait Stock Exchange reflected a relative shift from speculative trading to selective investment, with liquidity remaining concentrated in First Market shares and leading sectors, primarily banking and real estate.

At the same time, the rise in the main market index despite a significant drop in its liquidity represents a positive indicator of improved performance for certain stocks, although this improvement remains accompanied by trading levels lower than the previous year.

The report pointed out that the total market capitalization of Gulf stock markets declined by approximately 111 billion dollars in September, reaching around 3.8 trillion dollars at the end of the month. This decrease was driven by declines in the market capitalization of the Saudi market, Qatar Stock Exchange, and Kuwait Stock Exchange by approximately 112 billion, 8.5 billion, and 2 billion dollars, respectively. Meanwhile, the Dubai Financial Market gained 5.5 billion dollars during the month, bringing its market capitalization to 265.6 billion dollars, and the Abu Dhabi market gained 5.6 billion dollars, reaching a market capitalization of 703 billion dollars.

Year-to-date, the Saudi market remains the largest gainer in market capitalization, with an increase of approximately 82 billion dollars, ending the month at 2.43 trillion dollars.

The report noted that trading volumes in Gulf stock markets declined by 4 percent in the first nine months, reaching $442 billion, amid geopolitical tensions and heightened risks. The Saudi market accounted for 54 percent of total Gulf trading, with liquidity valued at $238 billion, down 12 percent from the first nine months of 2025. Meanwhile, liquidity in the UAE markets (Dubai and Abu Dhabi stock exchanges) reached $105 billion, up 9 percent, representing 24 percent of the total trading value in Gulf exchanges.

The report stated that the Kuwait Stock Exchange’s market capitalization at the end of September stood at approximately 53.58 billion dinars, down by about 793 million dinars from the end of August.

The monthly decline was attributed to a 215 million dinar drop in the market capitalization of the banking sector, bringing its year-to-date losses to 811 million dinars. Additionally, the market capitalization of the financial services sector fell by 117 million dinars, while the telecommunications and real estate sectors declined by 91 million and 138 million dinars, respectively.

Market capitalization was distributed across 13 sectors, led by banking with 32.2 billion dinars, accounting for 60 percent of the total. The financial services sector followed with 10.69 percent, equivalent to a market value of 5.73 billion dinars. Real estate accounted for 7.81 percent, or 4.2 billion dinars, and telecommunications represented 7.5 percent, or 4 billion dinars. The industrial sector made up 4.87 percent of the Kuwait Stock Exchange’s market capitalization.