Kuwait bank credit grows 3.7% to 66.1 billion dinars

Summary

• New bank lending in Kuwait reached 2.422 billion dinars in nine months, lifting total credit 3.7%.
• Government and public institution deposits jumped 32% to 16.3 billion dinars over the same period.
• Construction and securities lending outpaced the market, signaling where Kuwaiti credit demand is concentrating.

The latest

Kuwaiti banks extended 2.422 billion dinars in new credit facilities from the start of the year through the end of September, according to Al-Jarida newspaper, lifting the total outstanding balance 3.7% to 66.1 billion dinars from 63.7 billion at the end of December 2025. Deposit growth ran alongside the expansion, led by a sharp increase in public sector money parked with banks.

Details

• The headline figure: New facilities issued by the banking sector between January and the end of September totaled 2.422 billion dinars, Al-Jarida reported. That took the aggregate credit balance to 66.1 billion dinars, against 63.7 billion dinars recorded at the close of December 2025, a rise of 3.7%.
• Private deposits: Private sector deposits grew 1.7% to 41.1 billion dinars, an increase of 692 million dinars over the period, according to the same report. Private money remains the largest single component of the deposit base, but it expanded far more slowly than public sector funds.
• The government surge: Deposits belonging to the government and public institutions rose 32%, climbing from 12.3 billion dinars to 16.3 billion dinars. That 4 billion dinar increase is nearly six times the growth recorded in private deposits over the same nine months.
• Personal lending: Personal facilities improved 4.3%, Al-Jarida reported, outpacing the 3.7% growth of the overall credit book. The newspaper did not break the category down between consumer loans, instalment lending and other household borrowing.
• Securities credit: Facilities extended for the purchase and trading of securities rose 6.3% to 5.117 billion dinars. The pace places market-linked lending among the faster growing segments of the Kuwaiti banking book this year.
• Real estate: Credit to the real estate sector grew 4.4% to 11.3 billion dinars, making it one of the largest exposures in the system after personal facilities. Property lending alone accounts for roughly a sixth of total outstanding credit.
• Construction leads: Lending to the construction sector recorded the strongest growth of any segment cited, rising 10.3% to 3.185 billion dinars as of the end of September 2026. It remains a smaller book than real estate, but it is expanding at more than twice the market rate.
• What was not detailed: The reported figures cover new facilities and outstanding balances by sector, without a breakdown of non-performing loans, provisioning levels, or the split of lending between conventional and Islamic banks.

Between the lines

The composition of the growth matters as much as the headline rate. Construction at 10.3% and securities at 6.3% both outran the 3.7% expansion of the overall book, pointing to project financing and market activity rather than broad-based borrowing. The 32% jump in government and public institution deposits also gives banks a larger low-cost funding cushion to lend against.

What's next

Watch the fourth quarter credit data for whether construction and securities lending sustain their double-digit and above-market pace, and whether government deposit growth holds after a 4 billion dinar increase.

Source: Al-Jarida (via Argaam)