Kuwait attracts leading US financial firms, boosting its role as a regional hub
- Analysts note that this influx of international players could enhance Kuwait’s competitiveness, attract more foreign capital, and raise confidence among global credit rating agencies, which currently assign Kuwait strong ratings of AA- (Fitch), A+ (S&P), and A1 (Moody’s).
- Despite the positive outlook, challenges remain, including oil price volatility and geopolitical risks. The 2025–2026 budget assumes an average oil price of around $68 per barrel, with a projected fiscal deficit of 7–8% of GDP. Inflation is expected to range between 2.2% and 2.5%.
Kuwait’s financial landscape is witnessing a major shift as several leading American financial institutions prepare to establish offices in the country, signaling growing international confidence and strengthening its bid to become a regional business hub.
The move follows BlackRock’s opening of its Kuwait office in September, with Goldman Sachs, The Carlyle Group, Franklin Templeton, and State Street now expected to follow suit.
Their presence is expected to deepen ties with Kuwait’s $1 trillion sovereign wealth fund and support broader economic reforms.
This development comes on the heels of Kuwait’s successful $11.25 billion sovereign bond issuance, managed partly by Goldman Sachs, marking its first return to global markets since 2017.
According to the International Monetary Fund, the entry of these firms could help push Kuwait’s GDP growth to 2.6% in 2025, up from earlier forecasts of 1.9%, Al-Rai daily reports.
The United Nations Conference on Trade and Development (UNCTAD) reported that Kuwait attracted $614 million in foreign direct investment in 2024, while outward flows reached $10.3 billion.
The banking sector also showed strong momentum, with total assets rising 10.39% in the first half of 2025 to 120.48 billion dinars, compared to 109.14 billion dinars in the same period of 2024. Net profits increased by 3.63% to 825.1 million dinars.
The arrival of global firms is expected to expand services such as asset management and private investments, further fueling growth.
Analysts note that this influx of international players could enhance Kuwait’s competitiveness, attract more foreign capital, and raise confidence among global credit rating agencies, which currently assign Kuwait strong ratings of AA- (Fitch), A+ (S&P), and A1 (Moody’s).
Beyond finance, the expansion is set to generate quality job opportunities in fields such as risk management, compliance, fintech, and financial analysis. These roles are expected to strengthen local talent and support Kuwait’s Vision 2035 goals of economic diversification.
Despite the positive outlook, challenges remain, including oil price volatility and geopolitical risks. The 2025–2026 budget assumes an average oil price of around $68 per barrel, with a projected fiscal deficit of 7–8% of GDP. Inflation is expected to range between 2.2% and 2.5%.
Even so, observers say Kuwait is entering a new financial era, with international partnerships and reforms positioning it to compete with Dubai, Abu Dhabi, and Riyadh as a regional hub.
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