Foreign Ownership in Kuwaiti Banks Drops 12.5% to KD 4.54 Billion
Al-Shal's report reveals a decline in foreign ownership of shares in banks listed on the Kuwait Stock Exchange by the end of the third quarter of 2026.
Translated by Alqyas from Al-Wasat — Original source
The absolute value of foreign investments in shares of Kuwaiti banks listed on the Kuwait Stock Exchange declined by 12.5 percent, reaching approximately 4.535 billion dinars by the end of the third quarter of 2026, compared to about 5.182 billion dinars at the end of 2025, according to a report by Al-Shal Consultancy.
The report clarified that foreign investments accounted for approximately 14.37 percent of the market capitalization of the banking sector, down from 16.01 percent at the end of last year. It noted that the decline in foreign investments exceeded the sector index’s drop, which stood at 2.7 percent during the same period.
The report added that the banking sector holds approximately 60 percent of the Kuwait Stock Exchange’s total market capitalization, remains the most attractive sector for indirect foreign investment, and is the second largest in terms of liquidity, having accounted for 27.7 percent of the exchange’s total liquidity during the first nine months of the current year.
96.9% of investments concentrated in five banks
The report indicated that approximately 96.9 percent of foreign investments were concentrated in five banks, led by National Bank of Kuwait with a value of about 1.957 billion dinars, followed by Kuwait Finance House at approximately 1.947 billion dinars, then Boubyan Bank at around 223.6 million dinars, Gulf Bank at about 146.2 million dinars, and Warba Bank at roughly 121.3 million dinars.
The remaining 3.1 percent was distributed among the other banks listed in the sector.
Regarding the percentage of foreign ownership relative to each bank’s market capitalization, National Bank of Kuwait ranked first with 25.05 percent, followed by Kuwait Finance House at 13.10 percent, Gulf Bank at 10.47 percent, and Kuwait International Bank at 9.68 percent.
Kuwait National Bank recorded the only increase
The report showed that Kuwait National Bank was the only one to record an increase in its foreign ownership percentage during the period, rising by 1.50 percentage points from 7.44 percent at the end of 2025 to 8.94 percent by the end of September 2026.
Conversely, Gulf Bank recorded the largest decline in foreign ownership percentage, dropping by 3.23 percentage points from 13.70 percent to 10.47 percent.
Al-Shal noted that the relative contribution of foreign investors decreased in seven out of nine banks during the period, considering that the decline in the value of their investments was partly linked to the sector’s poor performance, alongside selling and exit activities from some investment positions.
The report pointed out that geopolitical developments and the prolonged period of tensions may have contributed to increased liquidation activities by foreign investors, whose value of sold shares exceeded that of purchased shares, contrasting with their behavior in previous periods and with the movement of local investors.
