Kuwait Import Financing declined sharply during the first eight months of 2026, reflecting a significant reduction in bank funding for imports. Local banks provided KD4.38 billion in import financing between January and August. This marked a decline from KD6.01 billion during the same period in 2025. Meanwhile, the US dollar continued to dominate import-related transactions, accounting for nearly three-quarters of the total.
Data from the Central Bank of Kuwait showed that dollar-denominated financing reached KD3.26 billion. This represented 74.43% of all import financing during the eight-month period. Although overall financing declined, the figures highlighted the dollar’s continued importance in supporting Kuwait’s international trade. Other currencies maintained smaller shares, despite some recording notable increases.
Financing in other currencies reached KD750.6 million, representing 17.12% of the total. This category ranked second and recorded growth compared with the previous year. Its value increased from KD595.8 million in the first eight months of 2025. That represented an increase of KD154.8 million, or 25.98%.
The euro ranked third, with financing reaching KD158.2 million. It accounted for 3.61% of the total. Meanwhile, the UAE dirham represented KD94 million, equivalent to 2.14%. The Saudi riyal followed with KD81.4 million, accounting for 1.86%.
Other currencies contributed much smaller amounts to import financing. Japanese yen financing reached KD15.8 million during the period. The British pound accounted for KD14.1 million, while the Swiss franc reached KD6.8 million. These figures showed the continued concentration of import financing around the US dollar.
Payment orders represented the largest financing instrument during the first eight months. They accounted for KD2.87 billion, representing 65.50% of the total. Letters of credit ranked second at KD1.36 billion, or 31.09%. Collection bills contributed KD150 million, equivalent to 3.42%.
Monthly figures also revealed considerable changes in financing activity. January recorded the highest total, reaching KD865.3 million. February followed closely with KD860.8 million. However, financing declined to KD693.4 million in March and KD648 million in April.
The slowdown intensified during the following months. Financing fell to KD266.5 million in May and KD259.9 million in June. June recorded the lowest monthly figure during the period. Nevertheless, financing recovered to KD505.6 million in July before falling again.
August financing reached KD284.5 million, marking a substantial monthly decline. The figure fell 43.73% compared with July. It also dropped 65.34% from KD820.9 million recorded in August 2025. These changes highlighted the weaker pace of import-related bank financing during the summer.
The first four months generated approximately KD3.06 billion in financing. By comparison, the following four months accounted for KD1.31 billion. This represented a decline of 57.08% between the two periods. Consequently, the monthly data showed that financing activity weakened considerably after April.
July also brought a notable change in currency distribution. Financing under the other-currencies category reached KD324.3 million that month. This represented 64.14% of July’s total import financing. The increase highlighted a temporary shift in the currency mix, despite the dollar’s overall dominance.
Overall, Kuwait Import Financing figures illustrate changes in bank funding across currencies and payment methods. However, they do not represent the complete value of Kuwait’s merchandise imports. Instead, they measure bank financing reported under the Central Bank of Kuwait’s statistical framework.
