1.75 million in Kuwait turn to loans and credit for financing

• Self-inquiry credit reports jumped 55.6% to 112,020 by September 2024, adding 40,000 new potential borrowers. Consumer and housing loan accounts, along with credit cards, rose 6.6% to 742,450, bringing the total to 11.98 million by September 2024, up from 11.23 million a year earlier.

A credit analysis in Kuwait highlights a key economic insight that approximately 1.75 million citizens and residents have credit records, indicating they have taken personal loans, real estate loans, or credit cards. This underscores the deep integration of credit financing into the local economy, playing a vital role in spending and consumption, the Al Anba newspaper reported.

Notably, borrowing appetite remains strong, with a 55.6% surge last year in individuals checking their credit status before applying for new loans. This growing awareness of credit evaluation suggests either financial optimism or a rising need for additional financing amid economic shifts.

Individuals were not the only ones increasing their demand for financing; the commercial sector also saw a significant rise in credit facility clients, up by 20.3%. This growth reflects the entry of new companies into the market or the expansion of existing businesses. As a result, total commercial accounts increased by 27.5%, signaling a recovery in business activity and a growing inclination among companies to leverage banking facilities for expansion.

Commercial credit facilities grew by 29.9%

In terms of value, commercial credit facilities grew by 29.9%, reaching KD 49.06 billion, underscoring rising confidence in the business environment. This surge in trade finance could be attributed to the expansion of key economic sectors such as real estate, infrastructure, trade, and industry. It may also indicate a growing demand for liquidity to fund new projects or support business expansion. Increased access to commercial credit accelerates the investment cycle, enhancing market dynamism and driving further economic growth.

According to annual credit inquiry data obtained by the newspaper, the number of consumer and housing loan portfolio accounts, along with credit cards for individuals in Kuwait, rose by 6.6% to 742.45 thousand accounts from October 2023 to the end of September 2024, bringing the total to 11.98 million accounts compared to 11.23 million at the end of September 2023.

Automated inquiries related to consumer and housing loans and credit cards increased by 12.7%

Automated inquiries related to consumer and housing loans and credit cards increased by 12.7%, with 147.7 thousand new inquiries recorded over the year. By the end of September 2024, the total number of inquiries reached 1.3 million, compared to 1.16 million in September 2023.

Renewed appetite for borrowing

The data also highlighted a renewed appetite for borrowing among individuals. Credit information reports where customers checked their own credit status surged by 55.6%, adding 40 thousand new potential borrowers. This brought the total number of self-inquiry credit reports to 112.02 thousand by the end of September 2024, up from 71.99 thousand in the same period in 2023.

The total number of consumer and housing loan accounts, including credit cards, grew by 7.4%, with 42.16 thousand new accounts, reaching 610.73 thousand by the end of September 2024, compared to 568.57 thousand a year earlier.

Additionally, the number of individuals with credit data in the consumer and housing loan portfolio and credit cards increased by 4.7%, with 78.98 thousand new borrowers, bringing the total to 1.75 million by the end of September 2024, compared to 1.677 million in September 2023.

The total cash value granted to credit accounts for individual customers rose by 0.9%, reaching KD 4.31 billion by the end of September 2024, up from KD 4.27 billion in the previous year.

Commercial credit facility accounts rise 27.5%

The total number of commercial credit facility accounts recorded a substantial increase of 27.5%, adding 239.5 thousand accounts to reach 1.11 million by the end of September 2024, compared to 870.6 thousand a year earlier. Automated inquiries about commercial credit facility customers grew by 1.9%, reaching 20.42 thousand by the end of September 2024, compared to 20.05 thousand in the previous year.

The number of credit information reports for commercial credit facility customers surged by 69.7%, adding 177 new reports to reach 431 by the end of September 2024, compared to 254 reports in September 2023.

Commercial credit facility customers jump 20.3%

Meanwhile, the number of commercial credit facility customers rose by 20.3%, increasing by 17.6 thousand to reach 104.48 thousand by the end of September 2024, compared to 86.85 thousand in the previous year.

The total value of commercial credit facilities granted reached KD 49.06 billion, marking a 29.9% increase (approximately KD 11.3 billion) from KD 37.75 billion at the end of September 2023.