Global finance The Safest Banks Index, published annually in November, assesses the financial health and stability of the world’s 1,000 largest banks. Where do Kuwaiti banks stand? Overall it’s doing well, with eight banks occupying 13 spots on our various lists of the safest banks.
Kuwait is one of the richest countries in the world. The country’s banks are supervised by the Central Bank of Kuwait and provide both Islamic and conventional banking services to businesses and consumers. Foreign banks have been operating in Kuwait since 1968.
The government is a constitutional hereditary emirate with an economy based on the oil and gas industry. Kuwait is slowly diversifying its economy as oil and gas continue to account for more than 90% of the country’s exports and revenues. In addition, the country has a generous social security system, with about 80% of government spending going toward salaries and subsidies for government employees.
To boost Kuwait’s economy, in early 2024, new Prime Minister Mohammad Sabah Al-Salem presented parliament with a financial and economic reform plan that would transform the country and create a more diversified banking system. Among the measures, the plan would end the Kuwait Credit Bank’s monopoly and allow commercial banks to enter the real estate loan market. Reception of this plan is unknown at the time of publication.
Due to the country’s strong financial and external balance sheet, rating agencies have assigned Kuwait investment grade sovereign ratings: A+ from S&P, AA– from Fitch, and A1 from Moody’s.
Our proprietary algorithm evaluates each bank based on its ratings from the world’s leading agencies – Fitch, Moody’s, S&P – to determine the safest banks among the world’s 1,000 largest banks. Key rankings include Safest Commercial Banks, Safest Emerging Market Banks, Safest Islamic Banks and Safest Banks in selected countries and regions. Data on bank ratings is valid as of August 2023. Global finance The eight Kuwaiti banks’ scores ranged from 8.5 to 17. The ratings were effective as of August 2023.
National Bank of Kuwait
The National Bank of Kuwait is the country’s safest bank and the fourth safest bank in the Middle East. Being one of the largest banks in Kuwait with assets of approximately US$119 billion, it also ranks 54th.th among the safest commercial banks in the world and 17th among the safest banks in emerging markets. NBK is the first local bank in the entire Gulf region and today has 138 branches, subsidiaries and representative offices in 13 countries, seven of which are in the Middle East.
Bubyan Bank
Boubyan Bank is the second safest Islamic bank in the Middle East and is ranked 30th.th among the safest banks in emerging markets and 94th among the safest commercial banks in the world. The bank has approximately US$26 billion in assets and provides retail banking, corporate banking and wealth management services. The bank is part of the Boubyan group with four other subsidiaries that provide investment and asset management, real estate services, insurance and banking. Boubyan Bank’s shares are publicly traded on the Kuwait Stock Exchange, with the National Bank of Kuwait being the majority shareholder.
https://boubyan.bankboubyan.com/
Kuwait Finance House
Kuwait’s first Islamic bank, Kuwait Finance House, is one of the leading Islamic banks in the region and is ranked 35th.th among the safest banks in emerging markets and 113th among the safest commercial banks in the world. In February this year, KFH completed the largest merger in Kuwait’s banking sector, purchasing Bahrain-based Ahli United Bank for $11.6 billion. Ahli United Bank was also among the top Islamic banks in the region and ranked 44th safest bank in emerging markets and 127th.th among the safest commercial banks in the world. The new combined institution will support Kuwait’s economic diversity and development plans. The largest shareholders of Kuwait Finance House are the sovereign wealth fund Kuwait Investment Authority, Kuwait Public Fund Awqaf, the government’s juvenile affairs authority and the government’s pension fund of the government’s social security institution.
Al Ahly Bank of Kuwait
With assets of approximately US$21 billion, Al Ahli Bank of Kuwait has branches in Kuwait, Egypt and the UAE. The bank is partly owned by the Kuwait Government Social Security Institution and the Kuwait Investment Authority.
Gulf Bank of Kuwait
Gulf Bank of Kuwait is one of the country’s largest banks with assets of approximately US$22 billion. The bank provides consumer, wholesale banking, treasury and financial services.
Commercial Bank of Kuwait
Commercial Bank of Kuwait is the second oldest bank in Kuwait. With assets of approximately US$14 billion, the bank was one of the first financial institutions to offer Shariah-compliant financial services.
Varba Bank
Warba Bank is one of the largest Islamic banks in the region with assets of approximately US$14 billion. The main shareholders of the bank, founded in 2010, are the Kuwait Investment Authority, the holding company Al Sayer Group, Abdulla Saleh Abdullah Al Shalfan and the Government Social Security Institution.
https://www.warbabank.com/english/personal