Foreign investment in Kuwait banking sector falls 6 percent to $14.9bn in Q1 2026
A recent economic report has shown a decline in the value of foreign investments in the banking sector listed on the Kuwait Stock Exchange, falling to 4.868 billion dinars (approximately $14.896 billion) by the end of the first quarter of 2026, compared to 5.182 billion dinars (about $15.865 billion) at the end of 2025, representing a drop of around 6 percent.
The share of foreign ownership also decreased from 16.01 percent to 15.37 percent of the sector’s total capital value.
According to the report issued by Al-Shall Consulting, the Kuwaiti banking sector remains the largest contributor to the market’s total capitalization, accounting for 61.5 percent at the end of Q1 2026. It also continues to be the most attractive sector for indirect foreign investment and among the most liquid, representing 38.1 percent of total market liquidity during the first three months of the year.
The analysis further noted that the banking sector index declined by around 4 percent during the same period, coinciding with a reduction in foreign ownership across seven out of nine listed banks, reports Al-Rai daily.
Foreign investments remain heavily concentrated, with approximately 96.9 percent focused in five major banks. The largest share is held in the National Bank of Kuwait, with foreign investments reaching about 2.129 billion dinars ($6.514 billion), followed closely by Kuwait Finance House at around 2.097 billion dinars ($6.416 billion).
Other notable holdings include Boubyan Bank with approximately 201.2 million dinars ($615.6 million), Gulf Bank at 161.3 million dinars ($493.5 million), and Warba Bank at 129.7 million dinars ($396.8 million). The remaining banks collectively account for only about 3.1 percent of total foreign holdings in the sector.
In terms of ownership ratios, the National Bank of Kuwait leads with foreign ownership of 26.56 percent of its capital, while Kuwait Finance House ranks second at 14.10 percent. Gulf Bank follows with 12.28 percent, and Kuwait International Bank stands at 11.45 percent.
The report also highlighted varying movements in foreign stakes across individual banks. The most notable increase was recorded at Al-Ahli Bank of Kuwait, where foreign ownership rose by 0.53 percentage points to 7.97 percent. In contrast, Burgan Bank saw the largest decline, with foreign ownership falling by 1.22 percentage points to 3.64 percent.
Concluding its analysis, the report described foreign ownership in the Kuwaiti banking sector as relatively stable, with fluctuations largely influenced by sector performance, portfolio reallocations between banks, and limited impact from broader geopolitical developments.
