Kuwait Bank Credit Grows 6.5 Percent to 65.74 Billion Dinars as Money Supply Rises 1.2 Percent
Credit extended by Kuwait’s local banks reached 65,740.5 million dinars at the end of August 2026, up 6.5 percent on a year earlier and 1.1 percent on July, while broad money supply rose 1.2 percent over the year to 42,767.5 million dinars, according to the Central Bank of Kuwait’s monthly statistics. The two growth rates have moved apart. Credit added about 4,007.8 million dinars in 12 months, while M2 added 517.9 million, on our calculation.
Household instalment loans lead the growth in lending
Instalment loans to individuals, the largest single line, rose 5.8 percent to 18,063.7 million dinars and now account for 27.5 percent of all bank credit. Real estate lending rose 4.8 percent to 11,325.6 million. The fastest growth among the larger sectors came from crude oil and gas, up 18.7 percent to 3,114.6 million, followed by other services, up 14.1 percent to 6,645.3 million, and industry, up 12.4 percent to 3,251.5 million. Lending to trade was the main exception, falling 9.0 percent to 3,542.9 million.
| Sector | Million dinars | Change on a year | Share of total |
|---|---|---|---|
| Instalment loans to individuals | 18,063.7 | 5.8% | 27.5% |
| Real estate | 11,325.6 | 4.8% | 17.2% |
| Other services | 6,645.3 | 14.1% | 10.1% |
| Trade | 3,542.9 | −9.0% | 5.4% |
| Industry | 3,251.5 | 12.4% | 4.9% |
| Crude oil and gas | 3,114.6 | 18.7% | 4.7% |
| Total credit | 65,740.5 | 6.5% | 100% |
Table 13, utilised cash credit facilities to residents and non-residents. Changes and shares on our calculation.
Money supply edges lower on the month
M2 slipped 0.2 percent from July. Narrow money, M1, fell 2.3 percent in the month to 10,653.1 million dinars as sight deposits in dinars declined to 8,993.1 million and currency outside banks fell to 1,660.0 million, while quasi-money rose to 32,114.4 million, or 75.1 percent of M2. In the monetary survey, claims on the private sector rose 5.5 percent over the year to 52,283.4 million dinars, and net foreign assets fell 5.4 percent to 25,438.4 million, on our calculation.
Government deposits rise fastest
Total deposits with local banks reached about 62,873 million dinars, up 8.8 percent on a year earlier. Private sector deposits rose 2.5 percent to 45,796.0 million, while government deposits rose 33.8 percent to 6,079.2 million, though slightly below July’s 6,115.8 million, and those of public institutions rose 28.9 percent to 10,998.3 million, on our calculation. The balance of domestic public debt instruments, all held by local banks, reached 3,800 million dinars after a new issue of 100 million in August.
Why it matters: over the year, lending grew about five times as fast as money supply, on our calculation, and government and public institutions accounted for about 4.0 billion dinars of the roughly 5.1 billion dinar rise in deposits, while private sector deposits rose 2.5 percent. Household instalment loans remain the core of the loan book, while the strongest percentage growth among the larger sectors came from oil and gas, other services and industry.
Outlook: the September figures will show whether credit growth holds near 6.5 percent and whether M2 resumes growth after the August dip. The balance of domestic debt instruments will show the pace of new issuance.
Sources: Central Bank of Kuwait.
