Kuwait’s private sector investments abroad hit 15.8 billion dinars, up by 6%

Data from the Central Bank of Kuwait revealed that Kuwait’s net international investment witnessed a remarkable growth of 6.5%, amounting to 2.12 billion dinars by the end of the first quarter of 2024, reaching about 34.89 billion dinars, compared to 32.77 billion dinars during the comparative period of 2023, while it recorded a decrease of 0.08% on a quarterly basis, when it reached 34.92 billion dinars by the end of the fourth quarter of 2023, and net international investment is the result of total assets minus liabilities.

Assets, which include external balances of all sectors for the private sector except the general government, in addition to trade credit data and Kuwait Fund for Development loans only for the government, indicate that assets witnessed an increase of 4% by 2.52 billion dinars to reach 65.29 billion dinars by the end of the first quarter of 2024.

This is in comparison to the total assets of 62.76 billion dinars during the comparative period last year, while they recorded an increase of about 0.5% on a quarterly basis by 298 million dinars when they reached 64.99 billion dinars by the end of the fourth quarter of 2023.

Assets

The statistics dealt with the assets side, investment abroad, and in the securities portfolio, financial derivatives, in addition to other investments and reserve assets, as it showed that the value of direct investment abroad reached 15.83 billion dinars by the end of the first quarter of 2024, an increase of about 6% by 890 million dinars compared to 14.9 billion dinars during the first quarter of the year 2023, and on a quarterly basis, direct investment abroad recorded a growth of about 2.5% when it recorded 15.44 billion dinars.

During the first quarter of this year, direct investment abroad witnessed an increasing growth during 2023 and the first quarter of 2024, as it recorded during that period a level of 14.9 billion dinars during the first quarter of 2023, to decrease to a level of 14.69 billion dinars by the end of the second quarter.

It then recorded an increase during the third quarter to record 15.31 billion dinars, then 15.44 billion dinars by the end of the fourth quarter of 2023, and a level of 15.83 billion dinars by the end of the first quarter of 2024.

The item of direct investment abroad is distributed between 15.4 billion dinars in equity investments, including local banks with a value of 7.99 billion dinars, other sectors with a value of 7.44 billion dinars, investment companies with a value of 2.91 billion dinars, and 386.3 million dinars in debt instruments that also include the same items.

The data showed that the ownership rights of local banks include the consolidated data of commercial banks, specialized banks, and banks that operate in accordance with the provisions of Islamic Sharia.

The Central Bank showed in its data that local banks’ investments in financial derivatives witnessed a growth of 43% to reach 3.12 billion dinars by the end of the first quarter of 2024, compared to 2.18 billion dinars by the end of the first quarter of 2023.

Requirements

On the other hand, the Central Bank addressed, in terms of liabilities, foreign direct investment in Kuwait, in the securities portfolio, financial derivatives, and other investments, indicating that total liabilities at the end of the first quarter of this year amounted to 30.39 billion dinars, an annual increase of 1.3%, amounting to 406.7 million dinars, as total liabilities amounted to 29.98 billion dinars, while recording a quarterly increase of 1%, as liabilities amounted to 30 billion dinars by the end of the fourth quarter of 2023.

The statistics stated that foreign direct investment in Kuwait reached 5.01 billion dinars by the end of the first quarter of this year, compared to 5.11 billion dinars by the end of the fourth quarter of 2023, i.e. a decrease on a quarterly basis of 2%, while it recorded an annual increase of 3.3% when the balance of foreign direct investment in the country recorded cumulatively 4.8 billion dinars.

It showed that investment in the securities portfolio reached KWD 3.5 billion by the end of the first quarter of 2024, a year-on-year decrease of 8.9% when it reached KWD 3.9 billion by the end of the first quarter of 2023.

Meanwhile other investments decreased to KWD 18.7 billion, compared to KWD 19 billion in the first quarter of 2023, and the share of currency and deposits from those investments amounted to about KWD 6.1 billion.

It is noteworthy that Kuwait’s international investment position witnessed a recovery during 2023 and the first quarter of 2024, as it reflects the balance between external assets and liabilities, which reflects the country’s economic capacity and its influence on the international arena.

Kuwait is one of the countries that enjoy a strong international investment position, due to its effective management of its resources and foreign investments.

Significantly, Kuwait’s international investment position shows its ability to manage and invest its resources effectively, which enhances its economic position on the international arena.

Large foreign investments and huge cash reserves contribute to enhancing Kuwait’s financial stability and providing a strong foundation for facing future economic challenges.

14.4 Billion Dinars Reserve Assets

The data showed that Kuwait’s official reserve assets reached 14.4 billion dinars by the end of last June. The Central Bank’s reserve assets are divided into monetary gold worth 31.7 million dinars, special drawing rights worth 1.3 billion dinars, foreign currency and deposits abroad worth 12.8 billion dinars, Kuwait’s reserve position with the International Monetary Fund worth 222.9 million dinars, and securities abroad worth 51.5 million dinars, noting that these assets do not include the external assets of the Public Investment Authority.

On another level, the data showed that Kuwait’s external debt, including government and private sector debt balances, rose to 19.8 billion dinars by the end of 2023, compared to a total debt of 19.7 billion dinars by the end of 2022.