The Kuwait Stock Exchange has recently seen a notable increase in foreign investor activity. Their growing participation is reflected in a range of investment and trading indicators, which confirm an expanding interest in the local market. Foreign investors are particularly focused on financial stocks and leading companies listed on the Premier Market, while also turning attention to some operational firms on the Main Market.
This growing presence has translated into the formation of diversified foreign investment portfolios and an increase in buying activity, coinciding with stronger market indices and improved liquidity levels. Such trends indicate renewed confidence in Kuwait’s market fundamentals, driven by recent structural reforms and economic stability.
Official figures reveal that the value of foreign investments in the First Market has climbed to nearly 7 billion dinars. This reflects a deliberate strategy among foreign investors to inject more capital into the market by acquiring larger ownership stakes in major listed companies, reports Al-Jarida daily
As for investment portfolios, foreign investors now represent around 25 percent of the total client base on the Kuwait Stock Exchange. The number of non-Kuwaiti investors has risen by 17.1 percent compared to the same period last year, bringing the total number of investment portfolio clients to 4,825.
According to recent trading data, the value of foreign transactions from January through June 2025 reached 12.71 billion dinars, carried out through approximately 2.47 million trades. Within this activity, net purchases by foreign investors amounted to 442.36 million, representing a significant increase from 57.7 million dinars in the same period of 2024 — an impressive growth rate of 666 percent.
Several factors have played a critical role in attracting foreign investment. Among these are enhancements to the legislative framework, including greater protections for investors and reforms to relevant laws and regulations. The inclusion of Kuwaiti stocks in global indices—such as Morgan Stanley’s MSCI, FTSE Russell, and Standard & Poor’s—has also elevated Kuwait’s status as an emerging market, giving listed companies broader visibility and weight among global investors.
Foreign investors are also responding to the potential for strong returns in select listed companies, as well as to the upgraded market infrastructure that now aligns with international standards. These improvements have increased the overall value and attractiveness of the Kuwaiti financial market.
The growing foreign participation has had a positive impact on the market. It has helped boost liquidity through both direct investment and institutional activity linked to periodic global index reviews. It has also supported fair and efficient price discovery, as foreign capital tends to flow into shares with strong fundamentals, contributing to more accurate valuations that reflect the operational strength of the underlying businesses.
Additionally, foreign participation has helped diversify the investor base, bringing new strategies and perspectives into the market.
Looking ahead, the expansion of financial products and services is expected to further bolster foreign confidence. The availability of instruments such as exchange-traded funds (ETFs), bonds, sukuk, and financial derivatives will position the Kuwaiti market as a more dynamic and globally competitive investment destination.
