- Loans to non-residents rose to 6.809 billion dinars, up 22.7% year-on-year.
- Local banks’ deposits with foreign banks increased sharply to 7.529 billion dinars, reflecting stronger overseas liquidity management.
- Foreign banks’ deposits in Kuwait climbed to 7.082 billion dinars, signaling continued confidence in Kuwait’s banking sector.
- Private sector foreign-currency deposits reached 6.24 billion dinars, posting nearly 29% annual growth.
- Foreign investments by Kuwaiti banks expanded to 14.2 billion dinars, strengthening the sector’s international financial footprint.
Kuwait’s banking sector is steadily reinforcing its international presence, with new Central Bank figures showing a significant rise in cross-border lending, stronger foreign deposit flows and expanding overseas financial activity during the first five months of 2026.
The latest data indicate that Kuwaiti banks are playing an increasingly active role in regional and international financing, reflecting growing confidence in the country’s banking system despite continued uncertainty across global financial markets.
Loans and credit facilities extended to non-residents rose by nearly 559.4 million dinars, or 8.95 percent, reaching 6.809 billion dinars by the end of May, compared with 6.25 billion dinars at the close of 2025. On an annual basis, overseas lending expanded by 22.7 percent, adding 1.26 billion dinars over May last year.
While lending denominated in Kuwaiti dinars remained relatively limited, it edged down slightly to 161.9 million dinars, reflecting the continued preference for foreign-currency financing in international transactions.
The data also reveal a strategic shift in interbank financing. Loans extended by Kuwaiti banks to foreign banks declined to 3.551 billion dinars, down 17.5 percent since December, suggesting a more selective approach to wholesale lending. Nevertheless, these exposures remain substantially higher than a year earlier, posting an annual increase of 47.3 percent.
Similarly, borrowing by local banks from overseas financial institutions eased modestly during the first five months of the year to 2.498 billion dinars, although it remained 11.5 percent above year-earlier levels.
As a result, reciprocal lending between Kuwaiti and foreign banks stood at 6.05 billion dinars, reflecting a short-term adjustment in liquidity management while maintaining strong year-on-year growth.
Perhaps the strongest signal of international confidence came from deposit movements. Kuwaiti banks increased their deposits with foreign banks, including certificates of deposit, by 28.35 percent since the beginning of the year to 7.529 billion dinars, highlighting greater overseas investment and liquidity diversification.
Foreign banks also continued to expand their presence within Kuwait’s financial system, increasing deposits with local banks to 7.082 billion dinars, representing annual growth of more than 17 percent.
Private sector confidence in foreign-currency savings also remained robust. Deposits held in foreign currencies at local banks climbed to 6.24 billion dinars, recording an annual increase approaching 29 percent, underscoring sustained demand for diversified currency holdings.
Meanwhile, Kuwaiti banks maintained steady growth in their international investment portfolios, with foreign investments reaching approximately 14.2 billion dinars, reinforcing their expanding role in global financial markets.
The figures collectively highlight the resilience of Kuwait’s banking sector and its growing integration with international financial markets.
As banks continue to diversify funding sources, strengthen overseas partnerships and expand cross-border operations, the sector appears well positioned to support both domestic economic growth and Kuwait’s broader ambitions as a regional financial hub.
