Kuwaiti investments in U.S. Treasury bonds surge as Saudi, UAE holdings dip

Official data from the U.S. Treasury Department revealed that Kuwait has significantly increased its holdings of U.S. Treasury bonds, reaching $57.02 billion by the end of May 2025, up from $50.34 billion in December 2024 — a 13.2% rise, or $6.68 billion.

In May alone, Kuwait boosted its bond holdings by $2.8 billion compared to April’s $54.2 billion, marking a monthly increase of 5.16%. The composition includes $55.49 billion in long-term bonds and $1.53 billion in short-term bonds, reports news agencies.

Year-on-year, Kuwait’s investments surged by $10.8 billion, or 23.4%, compared to $46.2 billion in May 2024. These movements reflect Kuwait’s dynamic investment strategy, adapting to changes in U.S. bond yields.

Meanwhile, Saudi Arabia and the UAE trimmed their U.S. bond holdings. Saudi Arabia’s investments dropped by $6.1 billion in May to $127.7 billion, while the UAE saw a steeper decline of $9.3 billion, bringing its total to $103.6 billion.

Globally, Japan retained its top position as the largest holder of U.S. debt, with a marginal increase to $1.135 trillion in May.