Kuwait’s global investments jump 7.9% to KD 37.66 billion in Q1 2025

• By the end of March 2025, Kuwait’s total foreign assets stood at KD 71.92 billion, up 10.2% from KD 65.29 billion a year earlier, marking one of the highest levels in recent years. The growth was driven mainly by foreign direct investment, which rose 10.9% to KD 17.56 billion.

Kuwait’s net international investment position (NIP) rose to KD 37.66 billion in the first quarter of 2025, compared with KD 34.90 billion a year earlier. This marks an annual increase of 7.9% and a 4.9% rise from the end of 2024, when the figure stood at KD 35.9 billion, according to data from the Central Bank of Kuwait (CBK).

The growth highlights Kuwait’s ability to generate surpluses from external transactions and channel them into diversified international assets, strengthening its financial resilience against global economic shifts and market volatility, reports Al Anba newspaper.

According to the quarterly statistics issued by the Central Bank of Kuwait (CBK), the country’s international investment position is measured as total assets minus total liabilities. Assets include external balances for all sectors except the general government, which is counted only in trade credit data and Kuwait Fund for Arab Economic Development loans.

By the end of March 2025, Kuwait’s total foreign assets stood at KD 71.92 billion, up 10.2% from KD 65.29 billion a year earlier, marking one of the highest levels in recent years. The growth was driven mainly by foreign direct investment, which rose 10.9% to KD 17.56 billion.

Kuwaiti banks expanded their share by 12.5% to KD 8.99 billion, while investment companies increased holdings by 8.2% to KD 8.01 billion. Debt instruments within direct investment jumped 46.3% to KD 564.9 million, underlining Kuwait’s role in financing overseas projects.

Securities portfolio investment climbed 23.5% to KD 9.76 billion, the strongest growth since 2021. Debt instruments led the increase, rising 33.1% to KD 6.52 billion, as investors favored fixed-return assets amid high global interest rates offering attractive returns with lower risk.

Financial derivatives posted the sharpest rise, surging 89.4% to KD 5.93 billion, compared with KD 3.13 billion a year earlier. Largely held by local banks, this reflects a growing reliance on derivatives for hedging and for capturing opportunities from global market movements, signaling a shift towards more active and sophisticated investment strategies.

In other investments, the total rose to KD 24.44 billion, up 3.0%, despite a 4.0% decline in currency and deposits to KD 11.22 billion. This suggests a redirection of liquidity toward higher-yielding assets. Loans granted abroad increased by 10.2% to KD 11.13 billion by March 2025, compared with KD 10.1 billion a year earlier, with local banks’ share rising to KD 5.36 billion. The “other” category also grew 17.6% to KD 584.8 million, covering items not classified under main categories. Meanwhile, reserve assets at the Central Bank of Kuwait declined by 3.1% to KD 14.23 billion, despite special drawing rights increasing to KD 1.33 billion, reflecting adjustments in reserve allocation.

On the liabilities side, total assets climbed to KD 34.26 billion, a 12.7% increase from KD 30.39 billion in March 2024. Foreign direct investment in Kuwait rose 3.0% to KD 5.17 billion, indicating continued market appeal, though at a slower pace than Kuwaiti investments abroad. Portfolio investment grew 15.2% to KD 4.12 billion, supported by a 52.8% rise in equity, suggesting stronger foreign interest in Kuwaiti companies.

Financial derivatives liabilities surged 91.5% to KD 5.88 billion, highlighting expanded transactions with foreign counterparts. Other investments grew 2.0% to KD 19.10 billion, driven by a 14.9% rise in deposits to KD 7.09 billion. In contrast, outstanding external loans fell to KD 7.01 billion, while the “other” category dropped 15.5% to KD 4.84 billion.

Overall, Kuwait maintains a strong external position with a solid surplus, though rapid liabilities growth, particularly in derivatives and deposits, warrants close monitoring to safeguard long-term stability.

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