June 22, 2024

Kuwait Banks on Banks for its Economic Upturn


Kuwait’s banking sector is one of the most efficient and fastest economically growing nations in the GCC region. Kuwait has 11 local commercial banks which include 5 Islamic banks. As per reports, the total aggregated value of profits after tax of listed banks in Kuwait was around 1.2 billion Kuwaiti dinars in 2019. However, this fell to 592 million Kuwaiti dinars after the global Covid-19 pandemic in 2020.

According to the survey, as the number of commercial banks in Kuwait increases, by 2025, bank account penetration will reach 99 percent. Kuwait has a score of 620 on the Global Financial Centers index. Kuwait is a leader in the Middle East for online banking and financial technology. There will be approximately 28 financial technology startups in the country by 2020.

Kuwait is a leader in the Islamic banking sector, within the Middle East region. Kuwait contains nearly 6.3 percent of global Islamic banking assets. Islamic banks in Kuwait grew by 8.8 percent by 2020, compared to conventional banks in the country, which grew by only 0.5 percent during the same period. Kuwaiti Islamic bank’s standalone credit profiles are predicted to enhance in 2022 by a more favorable operating environment of high oil prices, rising interest rates, and stronger credit growth, according to Fitch Ratings in a new report. The advancement of digital banking will continue to be a top priority. The Kuwait government supports the benefits of Islamic banks to be a form of enabling and supportive Islamic regulations.

During the period of the pandemic, the expansive, unpredictable, and overwhelming scope of the impact left its mark on the sector, but Kuwait’s banks revealed to be efficient, and properly action-oriented and were quick to take decisive steps to alleviate the negative impact and the economic toll, both for themselves and the economy as a whole. Banks have played an important role in assisting the government, the national recovery efforts, Small and medium enterprises, and even individual consumers since the beginning of the crisis.

Banking into Everyone’s Happiness

Jordan Kuwait Bank, one of the leading banks in Kuwait,  is leading a distinctive role in serving the national economy since its inception on October 25, 1976, by providing distinguished and comprehensive banking services and solutions that meet the needs and interests of the Bank’s clients and the general public through a wide network of branches in Jordan and Cyprus. Jordan Kuwait Bank is a private banking unit offering customers an integrated set of investment banking products and services. Jordan Kuwait Bank aims to support Small and medium enterprises in achieving their objectives through a variety of financing programs. It offers direct and indirect facilities to both individuals and businesses across all industries. Jordan Kuwait Bank offers products and services that aim to increase business activity and efficiency by financing working capital, fixed asset financing, maintenance & decor financing, supply chain financing, as well as financing for business expansion, purchasing shares from partners, purchasing raw materials, investing in new projects, and any other purpose permitted by law and international conventions. Jordan Kuwait Bank supports the cultural, artistic, and sports movements in the Kingdom and also trains the young generation in the education department. Jordan Kuwait Bank continuously and dedicatedly supports most of the charitable organizations in the nation that is working for the poor and needy people, supporting families, and empowering women.

The Bank’s Treasury and Investment department offers customers services such as foreign exchange products, margin trading, financial derivatives, money market products at competitive prices, capital market products at competitive prices, and many more.

Jordan Kuwait Bank provides a comprehensive range of foreign exchange products to meet the client’s needs for maximizing profits or hedging and protecting their financial assets, including spot and forward trading in foreign currencies and precious metals. Foreign exchange transactions are carried out through direct contact with the Treasury and Investment department’s dealing room, which is outfitted with cutting-edge communications technology and financial information systems.

Jordan Kuwait Bank Award Logos

Jordan Kuwait Bank has won two awards from  International Business Magazine, titled as “Best Private Bank Jordan 2022” and “Best Corporate Bank Jordan 2022.”

Digitization can assist banking institutions to advance their environmental, social, and governance (ESG) priorities. Digital banking solutions, for example, can broaden inclusive financing options while reducing the need for cash and paper, whereas data analytics can improve risk-management procedures. According to the latest S&P Global Ratings report, Kuwait’s positive macroeconomic outlook, higher oil prices, and rising interest rates are smoothening the recovery path for Kuwaiti banks. Earnings in the banking sector are expected to fully recover in 2022, aided by higher margins as banks’ balance sheets shift toward rising interest rates and lower credit charges.

Blog By Kavitha N.D



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