Kuwait tops Gulf markets as preferred destination for local investment funds

Local investment companies have allocated approximately 60 percent of the weight of their portfolios and investment funds invested in Gulf-listed equities to the Kuwait Stock Exchange in 2026, reflecting growing confidence in the local market and its future prospects.

The estimates are based on the outlook of portfolio and fund managers at several investment firms, who ranked the Kuwaiti market as their top investment priority among Gulf markets. Saudi Arabia came second, accounting for most of the remaining 40 percent, making it the next most prominent destination for Kuwaiti investments, reports Al-Rai daily.

Investment managers attributed this allocation strategy to their positive assessment of the Kuwaiti economy and the ongoing reforms in the business environment, alongside the rollout of major infrastructure projects and housing city developments, which are expected to support economic growth and corporate performance.

The appetite for the local market has been further strengthened by disclosures from locally listed companies regarding expansion plans, contract awards, improved profitability, capitalization growth and financial restructuring, all of which have reinforced investor confidence.

In this context, banks and operating companies known for high levels of transparency have drawn increased attention, with the analysis of corporate disclosures and announcements becoming a key strategic tool for anticipating market trends and daily trading movements.

With plans underway to diversify investment instruments on the stock exchange, monitoring periodic company disclosures has become an effective method for identifying liquidity flows and investment direction, despite shortcomings that may exist in the disclosure practices of some listed firms.

Market sources stressed that informed investment analysis represents a critical competitive advantage for investors, including individuals, companies, financial institutions, fund managers and portfolio managers.

“When a company announces a contract or a positive development, a sophisticated investor does not focus solely on the contract value,” sources said.

“Instead, the assessment extends to the nature of the activity, the duration of the agreement, its impact on revenues and cash flows, and how closely it aligns with the company’s core business, as well as its implications for risk and profitability.”

As the season for announcing 2025 annual results approaches, the financial statements of listed companies are expected to form the cornerstone of investment analysis. Quarterly and annual disclosures provide critical indicators, most notably the growth of operating revenues, which reflects genuine business expansion rather than one-off or exceptional gains.