'Al-Shal': Foreign Investment in Stock Exchange-Listed Banks Reaches 4.535 Billion Dinars by End of Third Quarter

- Investments down 12.5%... and 96.9% of them concentrated in 5 banks

Information available on foreign investment in the Kuwaiti banking sector listed on the stock exchange as of the end of the third quarter of 2026 shows that the absolute value of their investments in the sector declined to approximately 4.535 billion Kuwaiti dinars (about $13.967 billion US), compared to around 5.182 billion dinars (about $15.960 billion) at the end of 2025.

A report by Al-Shal Consultancies, released on Saturday, clarified that the decline in these investments reached 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 of 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 stated that the banking sector index fell by approximately 2.7 percent, and that the relative share of foreign ownership 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, with the highest absolute investments held in National Bank of Kuwait (NBK) at approximately 1.957 billion dinars (about $6.027 billion), followed by Kuwait Finance House (KFH) at around 1.947 billion dinars (about $5.996 billion), and Boubyan Bank at approximately 223.6 million dinars (about $688.6 million).

It clarified that foreign ownership concentration amounted to approximately 146.2 million dinars (about $450.2 million) in Gulf Bank, and around 121.3 million dinars (about $373.6 million) 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 the sector’s other banks.

It pointed out that National Bank of Kuwait leads in relative foreign ownership with 25.05 percent of its market value, meaning their ownership is the highest. Kuwait Finance House followed with 13.10 percent, also ranking 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 Finance House, rising by approximately 1.50 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 same period was recorded by 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, and that some of the decline is attributable to the drop in the sector’s index and some divestment. Ownership continues to trend upward or downward depending on the performance of the sector index, along with rebalancing between banks or marginal divestment.

It added: "Foreign investors may have been affected by the intensity and duration of geopolitical events, as they are the only group whose value of sold shares exceeded that of purchased shares, unlike their past behavior and that of local investors, indicating that some liquidation and divestment have taken place."