Local Kuwaiti banks provided approximately 4.38 billion dinars in financing for imports during the first eight months of 2026, down from 6.01 billion dinars in the corresponding period last year, as the US dollar continued to account for the overwhelming share of import-related banking finance.
Data released by the Central Bank of Kuwait showed that dollar-denominated financing reached 3.26 billion dinars between January and August, representing 74.43 percent of total financing. The figures highlight the dollar’s continued dominance in financing Kuwait’s imports, despite a substantial year-on-year decline in overall lending for this purpose.
The category classified as “other currencies” ranked second, accounting for 750.6 million dinars, or 17.12 percent of the total. Unlike the other listed currencies, this category recorded year-on-year growth, rising from 595.8 million dinars in the same period of 2025, an increase of 154.8 million dinars, or 25.98 percent.
The euro ranked third at 158.2 million dinars, representing 3.61 percent of total import financing. It was followed by the UAE dirham at 94 million dinars, or 2.14 percent, and the Saudi riyal at 81.4 million dinars, equivalent to 1.86 percent. Other currencies accounted for considerably smaller shares. Financing in Japanese yen reached 15.8 million dinars, while the British pound accounted for 14.1 million dinars and the Swiss franc for 6.8 million dinars.
Payment orders dominate financing instruments
The breakdown by payment instrument showed that other payment orders accounted for the largest share, totalling 2.87 billion dinars, or 65.50 percent of the overall amount. Letters of credit ranked second at 1.36 billion dinars, representing 31.09 percent, while collection bills accounted for 150 million dinars, or 3.42 percent.
Import financing varied considerably throughout the eight-month period. January recorded the highest monthly figure at 865.3 million dinars, followed by February at 860.8 million dinars. The total then declined to 693.4 million dinars in March and 648 million dinars in April. The slowdown became more pronounced in May, when financing fell to 266.5 million dinars, followed by 259.9 million dinars in June, the lowest monthly level recorded during the period.
Financing subsequently recovered to 505.6 million dinars in July before falling again to 284.5 million dinars in August. The first four months accounted for approximately 3.06 billion dinars in financing, compared with 1.31 billion dinars during the following four months, a decline of 57.08 percent between the two periods.
August financing fell 43.73 percent compared with July and 65.34 percent year-on-year, against 820.9 million dinars in August 2025. The data also showed a notable shift in the currency composition of financing during July, when the “other currencies” category reached 324.3 million dinars, accounting for 64.14 percent of that month’s total.
The figures reflect the value of bank financing for imports, classified by currency and payment instrument under the Central Bank of Kuwait’s statistical reporting framework. They do not necessarily represent the total value of Kuwait’s merchandise imports.