Banking
From The Report: Kuwait 2024
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Increased oil revenue, consolidation and new digital offerings are fuelling the sector’s growth potential. Kuwait’s banks are among the largest and most robust in the region, ranking first in the GCC in terms of average net growth in total banking assets and net profit for 2022. Although supply chain constraints saw global oil prices tumble in 2020, Kuwait’s economic fortunes, and those of its banks, rebounded, with 2022 recording the highest credit growth since 2015. Competition is increasing in the digital banking segment, with the drive for digitalisation at full speed as banks try to cut costs, improve efficiencies and deliver more flexible services to customers.

This chapter contains interviews with Basel Al Haroon, Governor of the Central Bank of Kuwait; Isam Al Sager, CEO of the National Bank of Kuwait; and Sheikh Ahmad Duaij Jaber Al Sabah, Chairman of the Commercial Bank of Kuwait.

Articles from this Chapter

Overview

Stable expansion: Optimistic sector outlook supported by ongoing growth in assets and a high average capital adequacy ratio
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Increased oil revenue, consolidation and new digital finance offerings are fuelling the sector’s growth potential. Kuwait’s banks are among the largest and most robust in the region, with global consultancy firm KPMG ranking the country first in the GCC in terms of average net growth in total banking assets and net profit for 2022. Indeed, asset growth defined the sector’s trajectory that year, as Kuwaiti banks continued to recover from the disruptions of the Covid-19 pandemic. Supply chain…

Interview

Key markers: Basel Al Haroon, Governor, Central Bank of Kuwait (CBK), on efforts to curb inflation and implement sustainable policy
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Interview:Basel Al Haroon, Governor, Central Bank of Kuwait (CBK) In what ways do global inflationary pressures affect macroeconomic performance? BASEL AL HAROON: Local price fluctuations serve as crucial indicators for measuring different elements of economic performance. These include purchasing power and the allocation of resources to consumption, savings and investment. The CBK keeps a close eye on all these economic markers. The rise in global food prices following the first wave of…

Analysis

The right path: Regulators embrace financial services that account for environmental, social and governance considerations, in line with sustainability objectives
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In tandem with growth in the global sustainable investment market, the Kuwaiti government has championed sustainable development, particularly in finance. Despite a decline in the US during the 2020-22 period, financial assets related to environmental, social and governance (ESG) considerations have experienced growth elsewhere, aligning with international initiatives such as the UN Sustainable Development Goals (SDGs). Countries across the GCC are increasingly prioritising sustainable development…

Analysis

Crypto rush: Decentralised financing could play an important role in GCC countries’ efforts to diversify their economies
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As GCC countries look to harness new forms of financial technology (fintech), expand services and improve financial inclusion, governments are embracing decentralised finance (DeFi) and attracting cryptocurrency companies. DeFi – peer-to-peer financial services with no central authority or intermediary involved in trading, lending and investing – is seen by GCC countries as an opportunity to diversify their economies and embrace Web3 technologies, such as blockchain, the internet of things and…

Interview

Financial insights: Isam Al Sager, CEO, National Bank of Kuwait, on the near-term outlook and projections for the banking sector
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Interview:Isam Al Sager, CEO, National Bank of Kuwait What are your expectations for corporate and retail banking in the current landscape? ISAM AL SAGER: Numerous developments could have an impact on the expansion of corporate and retail banking in the current economic and geopolitical environment. Factors such as GDP growth, interest rates, inflation and government policies could influence credit demand, borrowing costs and overall business activity. Environmental considerations can shape…

Interview

Growth priorities: Sheikh Ahmad Duaij Jaber Al Sabah, Chairman, Commercial Bank of Kuwait, on managing the risks facing the sector
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Interview:Sheikh Ahmad Duaij Jaber Al Sabah, Chairman, Commercial Bank of Kuwait Which strategies are banks prioritising to maintain growth amid the global economic downturn? SHEIKH AHMAD DUAIJ JABER AL SABAH: Under the leadership and guidance of institutions like the Kuwait Banking Association (KBA) and the Central Bank of Kuwait (CBK), the banking sector is handling the global economic downturn with a multi-pronged strategy. We are emphasising digital transformation, which is a top priority…