Kuwait Welcomes Major Financial Institutions, Boosting Economy and GDP Growth
Kuwait is set to welcome several major international financial institutions, with projections suggesting a boost to its economy and GDP growth. The country's banking sector has shown robust momentum, and it aims to rival other regional hubs like yahoo finance.
The 2025-2026 budget assumes an average oil price of around $68 per barrel, with a projected fiscal deficit of 7-8% of GDP. Kuwait's GDP growth is expected to increase to 2.6% in 2025, up from earlier forecasts of 1.9%, thanks to the entry of these firms. Inflation is predicted to range between 2.2% and 2.5%.
Kuwait attracted $614 million in foreign direct investment in 2024, while outward flows reached $10.3 billion. The influx of international players could enhance Kuwait's competitiveness, attract more foreign capital, and raise confidence among global credit rating agencies. Several leading American financial institutions, including Goldman Sachs, The Carlyle Group, Franklin Templeton, and State Street, plan to establish offices in Kuwait. These institutions' presence is expected to deepen ties with Kuwait's $1 trillion sovereign wealth fund and support broader economic reforms.
The banking sector in Kuwait showed strong momentum, with total assets rising 10.39% in the first half of 2025. Kuwait is positioning itself to compete with Dubai, Abu Dhabi, and Riyadh as a regional financial hub. The expansion is expected to generate quality job opportunities in fields such as risk management, compliance, fintech, and financial analysis.
Kuwait's financial landscape is set to transform with the arrival of prominent international financial institutions. This development is expected to bolster the country's economy, create new job opportunities, and strengthen its position as a regional financial hub.
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