Financial Services Sector Research Highlights

Financial Sector Analyses

Innovation and digitalisation drive Kuwait’s diversification

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Although Kuwait’s economy remains largely reliant on the hydrocarbons sector, diversification through trade and investment is a key conduit for growth in the near-term. In recent years, the government has pursued an ambitious diversification agenda under its New Kuwait 2035 vision, which aims to bolster non-oil growth in infrastructure, logistics, financial services and renewable energy. This transition presents an opportunity to reinvigorate reform efforts in areas such as privatisation, public-private partnerships (PPPs) and foreign...

New technologies transform traditional banking in the GCC

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Open banking has rapidly emerged as a transformative force in global finance, redefining traditional banking models by enabling secure, application programming interface (API)-driven data sharing and third party service integration. Valued at approximately $25.1bn in 2023 and poised to surge to $29.6bn by 2025 – ultimately eclipsing $306.6bn by 2035 – the global market’s projected compound annual growth rate (CAGR) of 26.3% through 2035 underscores its potential to reshape financial services worldwide. Within the GCC...

Reform and cross-border growth drive Kuwait Islamic finance

OBG

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Kuwait’s Islamic financial sector has become increasingly dynamic since the end of the Covid-19 pandemic. Two banks, Kuwait Finance House (KFH) and Warba Bank, have made acquisitions that will expand their reach domestically and lay the groundwork for expansion in other regional markets where Islamic banking is not as developed as it is in Kuwait. The passage of Kuwait’s Public Debt Law in March 2025 will improve local banks’ liquidity and spur much needed improvements in the local sukuk (Islamic bonds) market...

Consumer demand drives digital payments in emerging markets

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Despite the ongoing macroeconomic and geopolitical headwinds experienced by the global economy, one area of the international financial system that has shown steady progression is digital payments. Since the Covid-19 pandemic, they have been spurred by a jump in remittance flows, and the greater availability of digital infrastructure and services, as well as higher demand for fast and seamless non-physical transactions. The trend is even more notable across low- and middle-income countries. While non-cash retail...

Reforms, health care expansion drive Kuwait insurance growth

OBG

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Kuwait’s insurance and takaful (Islamic insurance) sector has shown resilience in recent years, continuing to record profit and policy growth despite an uncertain global economic outlook. The sector is also benefitting from a long-term strategy to strengthen its regulatory framework and consolidate players with greater capitalisation and more transparent governance. In the coming years, further digitalisation, new product strategies and additional regulatory measures are likely to benefit the sector. These moves come within...