Increased foreign deposits in Kuwaiti banks elevate by 52.7%, totaling KD 5.08 billion
Kuwait's banking sector has witnessed a significant surge in foreign investments, with total deposits from non-resident entities reaching KD 5.084 billion by July 2025. This represents a 52.7% increase from KD 3.328 billion in December 2024, according to recent data.
The growth in private sector deposits from abroad suggests continued confidence in the Kuwaiti dinar and its stable exchange rate. The private sector deposits in Kuwaiti dinars reached KD 531.8 million by the end of July 2025, marking a 7.8% increase from KD 493.2 million in December 2024.
Foreign public institutions' deposits reached KD 1.025 billion, compared to KD 524 million, a 95.6% increase. Similarly, foreign government deposits rose to KD 222.4 million from KD 189.4 million, up 17.42%.
The significant rise in private sector institutional deposits from abroad over the seven-month period averaged KD 174.571 million per month. The monthly cash inflow of KD 250.857 million from non-resident entities in July 2025 was the highest rate for external deposits.
The Central Bank of the United Arab Emirates brought the highest amounts in foreign deposits to Kuwaiti banks from January to July 2025. This trend underscores the support the Kuwaiti banking sector enjoys from the foreign private sector, foreign banks, public institutions, and some governments, due to its stability and solvency to meet various requirements.
The local market offers competitive interest rates, ensuring depositors stable returns with minimal risk, supported by the implementation of the deposit guarantee scheme. This, combined with the banking sector's adherence to a strict regulatory framework, particularly in terms of financial indicators such as capital adequacy ratios and regulatory liquidity ratios, makes Kuwait an attractive destination for foreign investment.
Total private sector deposits reached KD 3.838 billion, compared to KD 2.615 billion in December 2024, a growth of 46.73%. Total deposits by foreigners in Kuwaiti banks from January 2025 to July 2025 reached KD 3.837 billion.
The growth in foreign investments in Kuwaiti banks not only boosts the economy but also serves as a testament to the country's financial stability and attractiveness to global investors.
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