Foreign deposits surge to record levels, reflect confidence in Kuwaiti banks

Kuwait’s banking sector continues to attract strong international confidence, as foreign deposits in local banks soared to 6.3 billion dinars by the end of 2025, nearly doubling from 3.32 billion dinars in 2024 — an increase of 89.4%.

The majority of these deposits come from the private sector, totaling 4.6 billion dinars (about $15 billion). These include 234.4 million in demand deposits, 18.2 million in savings, and 287.2 million in time deposits, amounting to a combined total of 539.7 million dinars. Foreign currency deposits alone account for approximately 4.13 billion dinars, highlighting the sector’s important role in managing international capital flows.

Foreign deposits are not limited to private entities. Government deposits reached 438.3 million dinars, mostly in time deposits, while public institutions contributed 1.193 billion dinars, also largely in time deposits, reports Al-Jarida daily.

Banking sources attribute this growth to several factors: confidence in the sector’s stability and financial strength, Kuwait’s appeal as a destination for diversifying deposits, increased openness to foreign institutions, and the creation of operational and commercial channels through these deposits.

The sector expects foreign deposits to continue growing this year, driven by upcoming government projects and strong interest from regional and global companies, particularly in oil and infrastructure ventures worth billions of dinars. This surge is likely to support financing operations for major projects while helping offset declines in interest margins.

Domestic Banking Highlights

Private sector claims on the public sector reached 40.496 billion dinars, including 9.059 billion in demand deposits and 31.436 billion in quasi-cash.

• Foreign liabilities increased to 17.8 billion dinars, up 40.1% from 12.7 billion in 2024.
• Government deposits fell by 21% to 3.871 billion dinars.
• Shareholders’ equity grew 8.5%, rising from 16.012 billion to 17.388 billion dinars.
• Public institutions’ deposits jumped 28.8% to 8.487 billion dinars, up from 6.588 billion in 2024.
• Interbank deposits increased 11.7%, from 2.223 billion to 2.483 billion dinars.

The figures demonstrate the resilience of Kuwait’s banking sector, reflecting both growing international trust and a solid foundation to support domestic and global financial operations.