Kuwait

The Central Bank of Kuwait (CBK) introduced new guidelines in February 2022 for establishing digital banks. These regulations reflect Kuwait’s efforts to support banking innovation for future economic development and financial stability. The new guidelines are expected to help the country’s banking sector keep pace with developments in global financial services.

The Gulf banking sector has witnessed an increase in mergers and acquisitions (M&A) in recent years, as lenders continue to deal with the economic headwinds associated with the Covid-19 pandemic. At the outset of the pandemic in the first quarter of 2020 it was anticipated that the economic slowdown and the associated fall in oil prices would accelerate the M&A trend...

An easing of disruptions associated with the Covid-19 pandemic, a sustained increase in oil and gas receipts, and the rollout of a new law providing a framework for establishing digital offerings have given Kuwait’s banking sector a renewed confidence that has been supported by the country’s wider economic recovery. Indeed, with real GDP returning to growth in 2021 and...

What more can local banks do to assist in Kuwait’s economic diversification, and which sectors have the most potential for accelerating diversification?

To leverage its location and proximity to major Gulf markets, Kuwait plans to develop economic zones to attract investment, and support trade and industry clustering. While trade was temporarily disrupted by the Covid-19 pandemic, exports rebounded significantly in 2021. The Middle East currently accounts for a large portion of Kuwait’s external trade, with the UAE and Saudi...