Kuwait import financing surges 31.6 percent year-on-year as trade activity strengthens
Banks channel 1.72 billion dinars into imports in two months amid stable demand in the midst of dollar dominance holding firm
Data released by the Central Bank of Kuwait shows that the value of import financing provided by local banks reached approximately 1.72 billion Kuwaiti dinars during the first two months of 2026 (January–February), reflecting sustained commercial momentum and steady demand for trade-related financing.
On a monthly basis, import financing recorded a marginal decline of 0.52%, equivalent to 4.5 million dinars, reaching 860.8 million dinars in February compared to 865.3 million dinars in January. The slight decrease points to overall stability in financing activity despite minor fluctuations.
In contrast, year-on-year figures showed strong expansion, with import financing rising by 31.6%, or 206.9 million dinars, compared to February 2025, when it stood at 653.9 million dinars. This significant growth underscores a notable increase in foreign trade financing activity and broader economic engagement, reports Al-Anba daily.
Currency breakdown data revealed continued dominance of the US dollar, which accounted for 85.26% of total import financing, equivalent to approximately 1.47 billion dinars. This highlights the dollar’s entrenched role as the primary currency in international trade transactions.
Other currencies collectively accounted for smaller shares, with “other currencies” representing 7.7% (133 million dinars), followed by the euro at 3.18% (54.9 million dinars). Remaining financing was distributed across several currencies, including the UAE dirham (25.8 million dinars), Saudi riyal (25.7 million dinars), Japanese yen (6.4 million dinars), British pound (6 million dinars), and Swiss franc (2.5 million dinars).
In terms of financing instruments, “other payment orders” dominated usage at 77.8%, totaling 1.34 billion dinars, reflecting their widespread adoption in settling trade obligations.
Letters of credit accounted for 19.2% (331.9 million dinars), while collection bills represented 3% (51.6 million dinars), highlighting the diversity of settlement mechanisms aligned with different trade requirements.
Overall, the data reflects continued strength in Kuwait’s external trade activity, alongside the banking sector’s sustained capacity to support import financing needs and ensure smooth market supply flows.
