Kuwait’s total foreign assets rose by 6.6 percent in the first quarter of 2026, reaching 76.782 billion dinars, compared with 72.035 billion dinars in the corresponding period of 2025, according to data from the Central Bank of Kuwait (CBK). The increase, equivalent to 4.746 billion dinars, was driven by growth in direct investments abroad, foreign securities portfolios, financial derivatives and other investments, which more than offset the decline in foreign reserve assets.
Data on Kuwait’s international investment position showed that direct investments abroad increased by 4 percent to 18.373 billion dinars, up from 17.67 billion dinars a year earlier. Equity investments accounted for 17.727 billion dinars, an increase of 3.6 percent, or 621.1 million dinars. Investments in debt instruments rose by 14.3 percent to approximately 646 million dinars, compared with 564.9 million dinars in the first quarter of 2025.
Within the direct investment category, local banks’ equity investments abroad climbed by 10.4 percent to 9.921 billion dinars, compared with 8.987 billion dinars. Investments by other sectors, including investment, insurance, finance, exchange and investment fund companies, declined by 3.8 percent, a decrease of 313.5 million dinars.
Foreign securities portfolios and derivatives expand
Kuwait’s investments in foreign securities portfolios increased by 3.7 percent, or 365 million dinars, to 10.126 billion dinars, compared with 9.76 billion dinars a year earlier. Equity holdings rose by 7 percent to 3.473 billion dinars, while investments in debt instruments increased by 2.1 percent to 6.653 billion dinars, up from 6.516 billion dinars.
Investments in financial derivatives recorded stronger growth, rising by 12.5 percent to 6.675 billion dinars from 5.93 billion dinars. Local banks accounted for the bulk of this category, with investments reaching approximately 6.66 billion dinars, an increase of around 745 million dinars. Investments by other sectors amounted to 8.1 million dinars.
Other investments abroad rose by 19.8 percent to 29.294 billion dinars, compared with 24.444 billion dinars in the first quarter of 2025. Currency and deposits represented the largest component, increasing by 36.4 percent to 15.312 billion dinars, an increase of approximately 4.09 billion dinars. Loans also grew by 8.9 percent to 12.13 billion dinars, compared with 11.132 billion dinars a year earlier.
Foreign reserves decline
Investments in insurance and guarantee programmes amounted to approximately 1.7 million dinars, up by 6.25 percent, while trade credit declined by 19.3 percent to 1.213 billion dinars, compared with around 1.5 billion dinars. Despite the growth in other overseas assets, Kuwait’s foreign reserve assets fell by 13.4 percent to 12.312 billion dinars, down from 14.226 billion dinars.
The reserves comprised 31.7 million dinars in monetary gold, 1.358 billion dinars in special drawing rights, 220 million dinars in the reserve position with the International Monetary Fund, and 10.702 billion dinars in other reserve assets.
Meanwhile, foreign direct investment in Kuwait rose by 3.6 percent, or 190.2 million dinars, to 5.357 billion dinars, compared with 5.167 billion dinars in the first quarter of 2025. Equity accounted for the majority of these investments, reaching 5.341 billion dinars, an increase of 4 percent. Foreign investment in debt instruments stood at approximately 16.3 million dinars.
Foreign portfolio investment in Kuwait recorded a sharper increase, surging by 136.5 percent to 9.737 billion dinars, compared with 4.116 billion dinars a year earlier. Equity investments rose by 116.7 percent to 1.953 billion dinars, while investments in debt instruments climbed by 142 percent to 7.783 billion dinars.
The figures point to contrasting movements in Kuwait’s international investment position during the first quarter, with total overseas assets and foreign investment in the domestic market increasing while the country’s foreign reserve assets declined.