Foreign deposits in Kuwaiti banks soar 52.7% to reach KD 5.08 billion
Overall, total non-resident deposits amounted to KD 5.084 billion by July 2025, up from KD 3.328 billion in December 2024, a 52.7% rise, representing a monthly cash inflow of KD 250.857 million.
• Total deposits by foreigners in Kuwaiti banks from the start of this year through the end of July reached KD 3.837 billion, up from KD 2.615 billion on December 31, 2024, an increase of KD 1.222 billion, equivalent to a 46.7% growth.
• Non-resident private sector deposits in Kuwaiti dinars reached KD 531.8 million by the end of July 2025, up from KD 493.2 million in December 2024, a 7.8% increase.
Non-resident deposits from the foreign private sector, public institutions, and governments saw the largest growth in the banking sector from the start of this year through the end of July.
Total deposits reached KD 3.837 billion, up from KD 2.615 billion on December 31, 2024, an increase of KD 1.222 billion, equivalent to a 46.7% growth, Al Jarida newspaper reported.
Overall, total non-resident deposits—including private sector, government, and public institutions—amounted to KD 5.084 billion by July 2025, up from KD 3.328 billion in December 2024, a 52.7% increase, representing a monthly cash inflow of KD 250.857 million—the highest rate for external deposits from non-resident entities.
The significant rise in private sector institutional deposits from abroad over the seven-month period, averaging KD 174.571 million per month, carries several positive implications, the most notable of which include:
1.Confidence in the Kuwaiti dinar and its stable exchange rate: Historically, the dinar has been one of the most stable and robust currencies against major currencies, making it a safe-haven currency for transactions and transfers conducted by the private sector.
2. Trust in the Kuwaiti banking sector: Confidence is partly due to support from the foreign private sector, foreign banks, public institutions, and some governments, as the sector enjoys stability and solvency to meet various requirements.
3. Strict regulatory framework: The banking sector adheres to the highest regulatory standards, particularly regarding financial indicators such as capital adequacy ratios and regulatory liquidity ratios.
4. Competitive interest rates: The local market offers attractive and competitive rates, ensuring depositors stable returns with minimal risk, supported by the implementation of the deposit guarantee scheme.
5. Flexibility in accepting foreign deposits: Local banks’ ability to accept deposits from the foreign private sector in multiple currencies encourages participation from financially capable entities.
Non-resident private sector deposits in Kuwaiti dinars reached KD 531.8 million by the end of July 2025, up from KD 493.2 million in December 2024, a 7.8% increase. Private sector deposits in Kuwaiti dinars totaled KD 3.305 billion by July 2025, up from KD 2.121 billion, a growth of 55.8%.
Total private sector deposits reached KD 3.838 billion, compared to KD 2.615 billion in December 2024, a growth of 46.73%. Foreign government deposits rose to KD 222.4 million from KD 189.4 million, up 17.42%, while foreign public institutions’ deposits reached KD 1.025 billion, compared to KD 524 million, a 95.6% increase.
