Banking showdown: Credit boom, deposit race ignite unprecedented competition in Kuwait
The question now circulating in financial circles is: what is fueling this remarkable banking appetite for both lending and deposits?
In recent days, it has almost become routine for individuals to receive back-to-back calls from their banks — the first offering a consumer loan “up to the maximum limit” for those who meet the criteria, and the second promoting attractive savings options with good returns.
These offers even extend to prize-linked accounts, which traditionally do not generate interest but qualify depositors for cash-prize draws, reports Al-Rai daily.
The question now circulating in financial circles is: what is fueling this remarkable banking appetite for both lending and deposits?
While personal lending has grown modestly between January and October — consumer loans by 0.6 percent and housing loans by 4.1 percent — broader banking data paints a much more dynamic picture.
Kuwait’s lending market has surged on the back of major transactions, including the absorption of 2 billion dinars, in financing for the government’s sovereign debt plans following the passage of the Finance and Liquidity Law, as well as a 1.5 billion dinars syndicated financing deal for the Kuwait Petroleum Corporation.
This momentum coincides with increasingly optimistic forecasts for the credit market. Standard & Poor’s, which recently upgraded Kuwait’s sovereign rating to “AA-,” expects the combined loan portfolios of Kuwait’s eight largest banks to expand by 8 to 10 percent over 2025–2026.
This anticipated growth is supported by an improved macroeconomic environment and a cycle of lower interest rates — factors that are set to stimulate credit activity for large and medium-sized enterprises.
With liquidity strong, demand rising, and banks fiercely competing for both borrowers and depositors, the boundaries of Kuwait’s banking race now stretch further than ever… even into the historically untouched territory of prize-linked savings accounts.
