Kuwait sees surge in import financing by local banks: Report

Local banks in Kuwait provided significant financial support to imports during the first eight months of this year, witnessing a substantial increase of 63.1 percent, totaling 2.859 billion dinars. This boost propelled the total import financing amount from 4.52 billion dinars in the same period the previous year to 7.38 billion dinars in the current year.

Monthly data also reflect positive growth, with import financing rising by 2.5 percent, equivalent to approximately 15.3 million dinars, from 597.9 million dinars at the end of July to 613.2 million dinars at the close of August. However, on an annual basis, there was a 15.7 percent decrease, amounting to 114.7 million dinars, compared to the August 2022 figure of 727.9 million dinars.

Breaking down the financing types, ‘other payment orders’ constituted the majority at 72.7 percent of total financing. This category exhibited remarkable growth, surging by 81 percent, reaching 5.36 billion dinars from 2.965 billion dinars in the first eight months of 2022.

Documentary credits secured the second spot, accounting for 24.2 percent of total import financing, demonstrating a growth rate of 46 percent, translating to 563.8 million dinars. Financing through collection policies represented 3.1 percent of total import financing but saw a decline of 31.6 percent.

US dollars dominated import financing at 85.6 percent, experiencing a significant uptick of 72.6 percent. Other currencies accounted for 6.2 percent of the total import financing, witnessing a 9.8 percent boost in August. Financing in euros comprised 4.2 percent of the total, with financing in UAE dirhams at 1.7 percent. Financing in Saudi riyals witnessed an impressive surge of 67.2 percent, reaching 93.5 million dinars.