- Despite challenges, Kuwaiti banks continued to support businesses by offering financing solutions for imported goods, raw materials and shipping costs to help maintain commercial activity.
- Payment orders remained the primary financing instrument, accounting for 70.1 percent of total import financing during the five-month period.
- The US dollar continues to dominate import financing, accounting for approximately 82 percent of the total value, equivalent to 2.733 billion dinars during the first five months of the year.
- The latest CBK figures indicate that Kuwait’s import financing market remains under pressure as businesses navigate weaker regional trade activity and ongoing supply chain uncertainties.
Bank financing for Kuwait’s imports declined during the first five months of 2026 as weaker trade activity and regional geopolitical tensions weighed on demand for import-related credit, according to data released by the Central Bank of Kuwait (CBK).
Total import financing stood at 3.33 billion dinars between January and May, marking an 8 percent decline, or 293 million dinars, from 3.627 billion dinars recorded during the corresponding period in 2025.
The sharpest decline came in May, when financing dropped by 58.8 percent month-on-month to 266.5 million dinars, compared with 648 million dinars in April. The figure represents the lowest monthly level since February 2021, when financing fell to 241.6 million dinars during the COVID-19 pandemic.
The decline reflects the impact of slower trade flows and continued disruptions to regional supply chains amid heightened geopolitical tensions, which have reduced demand for import financing.
Despite these challenges, Kuwaiti banks continued to support businesses by offering financing solutions for imported goods, raw materials and shipping costs to help maintain commercial activity.
Payment orders remained the primary financing instrument, accounting for 70.1 percent of total import financing during the five-month period.
Their value reached 2.339 billion dinars, down 8 percent from 2.544 billion dinars recorded a year earlier.
Letters of credit accounted for 27.2 percent of total financing, with a value of 906.6 million dinars, representing a modest 1.6 percent decline compared with 921.5 million dinars during the same period last year.
Meanwhile, collection bills recorded the steepest decline among financing instruments, falling 45.3 percent to 87.9 million dinars, compared with 160.9 million dinars in the first five months of 2025.
The US dollar continued to dominate import financing, accounting for approximately 82 percent of the total value, equivalent to 2.733 billion dinars during the first five months of the year.
Dollar-denominated financing declined 4.8 percent year-on-year and dropped sharply on a monthly basis, falling 66 percent from 520.9 million dinars in April to 176.9 million dinars in May.
The euro ranked second, representing 4 percent of total financing at 133.5 million dinars, down 26 percent from the previous year.
Financing in UAE dirhams declined 20.1 percent to 75.3 million dinars, while financing in other currencies increased 5 percent to 290.4 million dinars, accounting for 8.7 percent of the total.
Among other major currencies, financing in British pounds fell 30.8 percent to 13.7 million dinars, Japanese yen financing declined 31.5 percent to 12.4 million dinars, while financing in Swiss francs recorded the sharpest drop, plunging 85.3 percent to 6.3 million dinars.
The latest CBK figures indicate that Kuwait’s import financing market remains under pressure as businesses navigate weaker regional trade activity and ongoing supply chain uncertainties.
