- Kuwait’s banking sector is powering through 2025 with exceptional momentum, posting its fastest credit expansion in years and surpassing the landmark 100-billion-dinar asset threshold amid broad economic growth.
Kuwait’s banking sector posted one of its strongest credit expansions in years, with Central Bank data showing that loans granted during the first ten months of 2025 jumped by 5.592 billion dinars — an increase of nearly 9.8 percent.
The total credit balance for residents and non-residents climbed to 62.76 billion dinars, up from 57.169 billion dinars at the end of December, reflecting broad-based growth across almost all economic sectors.
The annual rise in credit reached 11.33 percent, equivalent to 6.38 billion dinars, compared to 56.37 billion dinars recorded in October 2024.
Consumer lending inched up by 0.6 percent to 2.084 billion dinars, while housing loans posted a stronger 4.1 percent increase, rising to 17.23 billion dinars. By contrast, private and model housing facilities contracted by 15.2 percent, dropping to 207.5 million dinars, reports Al-Rai daily.
Personal lending continued its upward trajectory, with the balance reaching 19.98 billion dinars at the end of October — a 668.1 million-dinar rise from December.
Strong Credit Surge Across Core Sectors
Loans for the purchase of securities recorded one of the steepest increases, soaring 17.4 percent to 4.437 billion dinars, up from 3.78 billion dinars, while lending to the oil and gas sector edged down by 0.4 percent.
Real estate lending maintained its momentum, climbing by 5.4 percent to 10.9 billion dinars and rising 7.66 percent year-on-year. Construction loans grew by 5.32 percent to 2.993 billion dinars, and industrial loans increased 8.2 percent to 3 billion dinars.
Loans extended to banks themselves recorded one of the most notable jumps of the year, rising 42.05 percent to 4.852 billion dinars compared to 3.41 billion dinars.
Deposits across the banking system also showed robust growth. Local bank deposits increased by 7.3 percent, rising to 57.75 billion dinars from 53.82 billion dinars at the end of 2024. Annual growth stood at 8.2 percent.
Deposits Rise Despite Government Withdrawals
Private sector deposits rose 7.02 percent to 44.55 billion dinars, while deposits from public institutions surged by 24.3 percent to 8.838 billion dinars. Government deposits, however, continued to decline sharply — falling 14.1 percent to 4.364 billion dinars. On an annual basis, government withdrawals amounted to 820.6 million dinars.
Bank assets crossed a historic milestone, exceeding 100 billion dinars for the first time. Total assets rose by 9.8 percent, or 9.84 billion dinars, reaching 100.68 billion dinars. Monthly growth amounted to 1.049 billion dinars.
According to the Central Bank, the expansion was driven by a 16 percent increase in foreign asset balances, a 6.3 percent rise in claims on the private sector, and a 729.8 million-dinar jump in loans to banks.
Despite this strong performance, net foreign assets dipped by 2.44 percent to 14.791 billion dinars, though they posted a monthly increase of 880.3 million dinars. Shareholders’ equity in local banks recorded steady growth, rising 6.46 percent to 17.04 billion dinars.
Bank Assets Break Records Amid Mixed External Indicators
In stark contrast to the banking sector’s performance, Kuwait’s official reserves posted a significant decline. Foreign reserves fell by 13.58 percent annually — equivalent to 1.47 billion dinars — to 12.22 billion dinars, marking the lowest level since March 2020. Compared to December 2024, reserves were down 10.74 percent, with monthly declines also recorded.
Foreign currency and deposits dropped 15.56 percent annually to 11.36 billion dinars, while Special Drawing Rights rose slightly to 1.33 billion dinars. Kuwait’s reserve position with the IMF increased to 219.8 million dinars.
The latest figures underscore a banking sector experiencing strong domestic credit expansion and historic asset growth — accompanied by a deepening erosion in state reserves and continued government withdrawals.
