Foreign investments in Kuwaiti banks reach KD 4.54 billion

The absolute value of foreign investments in the 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.

Al-Shal’s 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 about 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.

The report highlighted that approximately 96.9 percent of foreign investments were concentrated in five banks. National Bank of Kuwait led with holdings valued at around 1.957 billion dinars, followed by Kuwait Finance House at approximately 1.947 billion dinars, then Boubyan Bank at about 223.6 million dinars, Gulf Bank at roughly 146.2 million dinars, and Warba Bank at approximately 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.

Al-Shal noted that the relative contribution of foreign investors decreased in seven out of nine banks during the period, attributing the decline in their investment value partly to the sector’s underperformance, 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 by foreign investors, whose value of sold shares exceeded that of purchased shares, contrasting with their behavior in previous periods and with the activity of local investors.

Meanwhile, local banks’ claims on the private sector in Kuwait rose by 5.5 percent year-on-year, reaching approximately 51.822 billion dinars by the end of the second quarter of 2026, compared to about 49.115 billion dinars in the same period last year, according to Al-Shal’s weekly report based on the quarterly statistical bulletin of the Central Bank of Kuwait.

The report explained that banking claims on the private sector recorded a quarterly growth of 0.8 percent, compared to approximately 51.435 billion dinars at the end of the first quarter of the current year, reflecting continued growth in credit extended to the private sector.

In the same context, private sector deposits at local banks rose to approximately 40.992 billion dinars by the end of the second quarter, an increase of 1.2 percent from their level at the end of the first quarter, which stood at 40.516 billion dinars. They also recorded annual growth of 1.6 percent compared to approximately 40.353 billion dinars at the end of the second quarter of 2025.