Kuwait city: Locally listed banks' stocks are drawing strong interest from foreign investors due to their solid financial standing, high returns, and strong ratings from global credit rating agencies, in addition to Kuwait's own creditworthiness, economists said. This, they agreed, supported trading activity on one of the Gulf region's most active stock exchanges. According to Kuwait News Agency, economists have emphasized that bank stocks represent a critical line of defense against any technical or geopolitical fluctuations in the stock market. This explains foreign investors' interest in this segment, given its balanced operational efficiency and active presence both inside and outside Kuwait. Suleiman Al-Woqayan, a board member of Sorouh Holding Company, highlighted that listed bank stocks serve as the "leading compass" of genuine market movement. He noted that their prices are accessible to investors, and the boards of directors are keen to approve annual cash dividends or bonus shares, thus making the se stocks a psychological focal point for traders. Al-Woqayan further explained that foreign investors, through their portfolios on the exchange, have two main objectives: market stability and returns ranging between 4-5 percent, sometimes rising to 10 percent during seasonal upturns. This increased trading in both Islamic and conventional bank shares reflects this trend. He emphasized that the movements of banks' stocks were generally "balanced" in nature, pointing to the limited scope for manipulation or speculation, as their prices typically fluctuate within a narrow range. This stability attracts both local and foreign investors targeting long-term investments. Ibrahim Al-Failakawi, a financial markets analyst, described listed banks' stocks as "defensive, safest, and most active in trading." He observed that unlike other sectors, banks operate within the strongest and most dominant system in the market, which enhances their importance in balanced trading. Foreign investor demand for bank stocks unders cores their strength and significance. Al-Failakawi also noted that Islamic bank shares attract more interest than conventional banks, particularly from local investors seeking Sharia-compliant investments. The robust monetary policy strategy adopted by the Central Bank of Kuwait and implemented by banks provided an overall protective umbrella, which further boosts the resilience and prominence of listed banks' stocks. Fawzi Al-Dhefiri, Deputy Head of the Investment Unit at the Kuwait Investment Company, stated that Kuwaiti banks are the main driver of the local economy and play key roles when the government launches major capital projects. This reflects their financial strength and ability to finance such projects, in addition to their solid financial positions. Al-Dhefiri pointed out the ongoing competition between Islamic and conventional banks to capture larger market shares, contributing to active trading throughout the year. He also highlighted that the Central Bank of Kuwait's precautionary policy c ompelled banks to maintain provisions above international accounting standards, which demonstrates awareness of their importance within the exchange market. He added that Kuwaiti Islamic and conventional banks listed on Boursa Kuwait recorded net profits of approximately 1.67 billion Kuwaiti dinars (about USD 5.09 billion) in 2025, compared to about KD 1.66 billion (around USD 5.06 billion) in 2024. Cash dividends and bonus shares totaled around KD 1.2 billion dinars (approximately USD 3.66 billion), including KD 942.7 million (about USD 2.87 billion) in cash dividends and KD 287.4 million (about USD 876.5 million) in bonus shares.
