Kuwait’s banking sector leads KSE capitalization, attracts record foreign investment
The banking sector index grew by approximately 20.9 percent between the end of 2024 and September 2025 – Al-Shall Consulting
A recent economic report revealed that Kuwait’s banking sector remains the dominant force in the country’s stock market, contributing 62.1 percent to total market capitalization as of the end of September.
The sector is not only the most liquid among listed industries—accounting for 28.7 percent of total liquidity since the start of the year—but also the most appealing to foreign investors.
According to Al-Shall Consulting, the banking sector index grew by approximately 20.9 percent between the end of 2024 and September 2025. Foreign investment in the sector also rose sharply, reaching around 5.2 billion dinars by September, up from roughly 3.9 billion dinars at the end of 2024, reports Al-Jarida daily.
The majority of these investments are concentrated in five major banks: the National Bank of Kuwait attracted approximately 2.5 billion dinars, followed by Kuwait Finance House with about 2 billion dinars, Boubyan Bank at 224.8 million dinars, Gulf Bank at 186.1 million dinars, and Warba Bank with 126.2 million dinars. Collectively, these five banks account for roughly 97 percent of foreign investment in the sector, leaving the remaining 3 percent for other banks.
The report noted that foreign ownership in Kuwait’s banking sector has remained stable, with minor fluctuations depending on index performance and internal bank share transfers.
Notably, foreign investors were the only group whose purchases exceeded sales during this period, in contrast to local investors and those from Gulf Cooperation Council (GCC) countries, highlighting sustained international confidence in Kuwait’s financial institutions.
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