Global investments by Kuwait increase by 7.9% in Q1 2025, reaching KD 37.66 billion.

In the first quarter of 2025, Kuwait's foreign assets reached an all-time high of KD 71.92 billion, marking a significant 10.2% increase from the previous year's KD 65.29 billion. This growth highlights the country's ability to generate surpluses from external transactions and channel them into diversified international assets.

Portfolio investment in Kuwait grew by 15.2% to KD 4.12 billion, with a 52.8% rise in equity. This growth was primarily driven by foreign direct investment, which rose by 10.9% to KD 17.56 billion. Investment companies in Kuwait also increased their foreign assets by 8.2% to KD 8.01 billion.

The growth in financial derivatives indicates a shift towards more active and sophisticated investment strategies. Financial derivatives in Kuwait increased by 89.4% to KD 5.93 billion, with local banks holding most of these derivatives.

Kuwaiti banks expanded their foreign assets by 12.5% to KD 8.99 billion. This expansion was largely due to an increase in loans granted abroad, which rose by 10.2% to KD 11.13 billion. Local banks' share of loans granted abroad reached KD 5.36 billion.

Currency and deposits in other investments decreased by 4.0% to KD 11.22 billion. However, other investments still rose to KD 24.44 billion, up 3.0%. This increase was partly due to a 14.9% rise in deposits to KD 7.09 billion.

The growth in Kuwait's foreign assets strengthens its financial resilience against global economic shifts and market volatility. The net international investment position (NIP) increased to KD 37.66 billion in the first quarter of 2025, up 7.9% from the same quarter the previous year and 4.9% from the end of 2024.

However, rapid liabilities growth warrants close monitoring. Total assets on the liabilities side increased by 12.7% to KD 34.26 billion. Debt instruments led the increase in securities portfolio investment, rising 33.1% to KD 6.52 billion. Debt instruments within direct investment saw a significant increase of 46.3% to KD 564.9 million.

Reserve assets at the Central Bank of Kuwait declined by 3.1% to KD 14.23 billion. Outstanding external loans decreased to KD 7.01 billion. Special drawing rights increased to KD 1.33 billion at the Central Bank of Kuwait.

It is worth noting that there are no available search results providing the value of direct investments by companies from a specific country in Kuwait in the first quarter of 2025.

In conclusion, Kuwait's foreign assets have seen substantial growth, indicating a strong external position with a solid surplus. However, the rapid growth in liabilities necessitates close monitoring to maintain financial resilience in the face of global economic shifts and market volatility.

Global investments by Kuwait increase by 7.9% in Q1 2025, reaching KD 37.66 billion.