Foreign holdings in Kuwaiti bank stocks fall to $13.97 billion
Foreign investment in Kuwait's listed banks dropped 12.5% to roughly $13.97 billion by end-September 2026.
· Last verified: 17 Oct 2026 (Kuwait News Agency (KUNA), Al-Shall Consulting)
Summary
- Foreign investment in Kuwait's listed banks dropped 12.5% to roughly $13.97 billion by end-September 2026.
- Banks make up 60% of the bourse's market value and draw the most foreign portfolio money.
- The sell-down outpaced the banking index's 2.7% decline, signalling weaker foreign appetite.
The latest
Foreign investment in Kuwait's listed banking sector fell to about 4.535 billion dinars, roughly $13.967 billion, by the end of the third quarter of 2026, down from about 5.182 billion dinars, or some $15.960 billion, at the close of 2025. Al-Shall Consulting put the decline at 12.5%, steeper than the drop in the banking index itself.
Details
- The headline figure: According to Al-Shall Consulting, absolute foreign holdings in listed Kuwaiti banks stood at about 4.535 billion dinars at the end of September 2026, against about 5.182 billion dinars at the end of 2025 — a fall of roughly 647 million dinars, or about $1.99 billion, over nine months.
- Share of the sector: Foreign investment now equals about 14.37% of the banking sector's market capitalisation, down from about 16.01% at the end of 2025, according to the report. The ratio fell even as the absolute value shrank, meaning foreigners reduced their weight in the sector faster than the sector itself lost value.
- Outpacing the index: The banking index declined about 2.7% over the same period, far less than the 12.5% retreat in foreign holdings, according to Al-Shall. The gap indicates the decline reflects active selling or redemption rather than price moves alone.
- Weight on the bourse: The banking sector accounts for 60% of total market capitalisation on the Kuwait bourse as of the end of the first nine months of 2026, according to the report, making it the single largest sector and the biggest magnet for indirect foreign investment.
- Liquidity: Banks ranked second among bourse sectors by liquidity, capturing 27.7% of total market liquidity during the first nine months of 2026, according to Al-Shall. That concentration means shifts in foreign bank-stock positioning carry outsized weight for overall trading activity.
- Breadth of the retreat: Relative foreign ownership fell in seven of nine listed banks between the end of 2025 and the end of September 2026, according to the report, indicating the pullback was broad rather than confined to one or two names.
- Where the money sits: Foreign ownership remains concentrated in five banks, the report said. The largest absolute holding was in National Bank of Kuwait at about 1.957 billion dinars, roughly $6.027 billion, followed by Kuwait Finance House at about 1.947 billion dinars, or some $5.996 billion.
- Third-largest position: Boubyan Bank held about 223.6 million dinars in foreign investment, roughly $688.6 million, according to Al-Shall — a distant third behind the two largest lenders and a fraction of their individual totals.
Background
The Kuwait bourse is dominated by its banking sector, which alone represents 60% of market capitalisation. Foreign portfolio flows into the market are therefore largely a function of positioning in a handful of large lenders, and concentrated in five banks.
Between the lines
The divergence between a 12.5% drop in foreign holdings and a 2.7% fall in the banking index points to flows rather than valuation as the driver. With relative ownership down in seven of nine banks and positions concentrated in five, a broad trimming by foreign investors is the reading most consistent with the figures Al-Shall reported.
What's next
Full-year 2026 disclosures and the next Al-Shall report will show whether foreign holdings stabilise in the fourth quarter, and whether the banking index continues to diverge from foreign ownership trends.