Latest news with #CentralBankofKuwait
Arab Times
3 days ago
- Business
- Arab Times
New Kuwaiti Banknotes Distributed To Banks For Eid Al-Adha
KUWAIT CITY, June 1: The Central Bank of Kuwait (CBK) announced on Saturday that it has completed the distribution of new Kuwaiti banknotes in various denominations to all local banks, ensuring sufficient supply to meet public demand ahead of Eid Al-Adha. In a press statement, the CBK invited customers wishing to obtain new banknotes to visit their respective bank branches during official working hours. The statement added that Kuwaiti banks will announce the locations of designated branches offering the 'Ayadi' cashing service, as well as other available methods for customers to receive new banknotes.
Arab Times
3 days ago
- Business
- Arab Times
The Central Bank of Kuwait supplies banks with new banknotes for Eid Al-Adha
KUWAIT CITY, June 1: The Central Bank of Kuwait (CBK) announced on Saturday that it has completed the distribution of new Kuwaiti banknotes in various denominations to all local banks, ensuring sufficient supply to meet public demand ahead of Eid Al-Adha. In a press statement, the CBK invited customers wishing to obtain new banknotes to visit their respective bank branches during official working hours. The statement added that Kuwaiti banks will announce the locations of designated branches offering the 'Ayadi' cashing service, as well as other available methods for customers to receive new banknotes.
Arab Times
7 days ago
- Business
- Arab Times
Kuwait's Payment Revolution: From Cash to Tap-to-Pay in 15 Years
Walk into any café in Kuwait City today, and you are more likely to hear the beep of a phone than the rustle of dinars. According to the Central Bank of Kuwait's Payment Cards Statistics (2010-2024), card spending has increased from KD 569 million in 2010 to KD 4.64 billion in 2024, representing a 716 per cent rise, one of the fastest payment transformations in the Gulf. The digital awakening CBK data points to four forces converging at just the right moment: Youth demographics drive change With more than 70 percent of Kuwaitis under forty, and smartphone penetration above 90 percent, finance has shifted from branch counters to mobile apps. A rewards culture takes hold Cashback, airline miles, and instant discounts have coaxed even cash-comfortable consumers to first use plastic, then digital wallets. Travel and e-commerce boom Prolific travel and online shopping made card acceptance abroad and on global platforms frictionless; suddenly, the world felt smaller. Smart regulation paves the way Open-API frameworks and robust tokenisation from the Central Bank delivered secure, seamless payments. Tap-to-pay became ubiquitous almost overnight. A predictable rhythm Seasonality is now almost clockwork: Summer surge abroad (Q3): overseas card spend rises 54 per cen t above the Q1-Q2 average as families decamp for Europe and the Far East. overseas card spend rises t above the Q1-Q2 average as families decamp for Europe and the Far East. Winter shopping frenzy (Q4): domestic card use climbs 19 per cent, fuelled by Black-Friday-style promotions and year-end gifting Retailers are increasingly aligning their inventory and marketing calendars with these rhythm The great digital crossover 'One in every three dinars is now spent online.' Traditional point-of-sale spending still leads, at KD 1.78 billion in 2024; yet, the real revolution is online, as payment gateways handled KD 1.55 billion, accounting for 34 per cent of all card spending. Local gateways posted a 75 per cent compound annual growth rate between 2020 and 2024. Cross-border gateways grew at a rate of 44 per cent per year. ATM withdrawals, at KD 590 million in 2024, now account for roughly one-eighth of total card activity. What does this mean for Kuwait Businesses should time campaigns to coincide with Q4's local surge while capturing Q3's traveler wallet. Banks must pivot from card issuance to lifestyle ecosystems, including embedded finance, app-based instalments, and seamless cross-border services. Government agencies gain anonymised transaction data that supports everything from inflation tracking to urban planning, while furthering financial inclusion. Looking ahead After 2020, quarterly card spend surpassed KD 1 billion and has maintained that level. Cash will not disappear, yet its share continues to slip. Winners will treat payments not as a cost centre but as a customer-experience advantage, whether through QR-code payments at a corner grocery or friction-free instalments at a national retailer. Kuwait's payment revolution illustrates how rapidly consumer behavior can evolve when technology, demographics, and regulation align. The challenge now is for the broader economy to keep pace. Ali Bahbahani is the founder of Ali Bahbahani & Partners, a Kuwait-based consultancy specialising in customer experience and digital transformation across the GCC. Further insights at Source: Central Bank of Kuwait, Payment Cards Statistics, 2010-2024 By Ali Bahbahani, Founder, Ali Bahbahani & Partners
Zawya
7 days ago
- Business
- Zawya
Kuwait could issue debut debt tranche before Eid
With plans to borrow up to $20 billion during the current fiscal year, Kuwait could issue its first tranche of debt very soon possibly even before the Eid al-Adha holidays— after the OPEC oil producer last week authorised its multi-billion sovereign wealth fund, and the central bank to borrow funds. The Ministry of Finance has approved the Kuwait Investment Authority (KIA) to borrow in major foreign currencies on global markets, while the Central Bank of Kuwait (CBK) has been authorised to raise debt in domestic markets. 'All the signs are that the first issuance will come soon, maybe even before Eid al-Adha,' Justin Alexander, Director, Khalij Economics, told Zawya. He noted that the issuance could proceed despite less-than-ideal market conditions, including rising US Treasury yields driven by tariffs, a Moody's downgrade, and fiscal concerns surrounding US President Donald Trump's 'Big Beautiful Bill.' 'However, it's not clear that things will get better as the year progresses, so I expect there will be a sizable debut issuance, maybe around the $5 billion range, but it could easily be double that--Saudi Arabia and Qatar have made $10 billion-plus issuances in the past,' Alexander added. The green light for the KIA and CBK follows Finance Ministry Undersecretary Faisal Al-Muzaini's announcement last week that Kuwait plans to borrow between 3 and 6 billion dinars (approximately $10–20 billion) from international and local markets during the 2025/2026 fiscal year. Public debt In March, Kuwait issued a public debt decree, allowing the government to issue financial instruments with maturities of up to 50 years and setting a debt ceiling of KWD 30 billion ($98 billion) in major convertible foreign currencies. According to Fitch Ratings, this represents around 62% of the country's GDP. S&P Ratings projects that gross general government debt will rise to about 17% of GDP by 2028, up from 3% in 2024. Kuwait, which holds around 7% of the world's hydrocarbon reserves, relies on oil revenues for up to 87% of its income. OPEC+ production cuts have reduced Kuwait's oil exports and, consequently, its revenue. A think tank has suggested that Kuwait may need an average oil price of $100 per barrel to finance its growing budget deficit in the coming years. Junaid Ansari, Director of Investment Strategy and Research at Kuwait-based Kamco Invest, believes the borrowing plan is not a direct response to falling oil prices but part of a broader long-term strategy. 'The strategy is aimed at having a presence in the debt market, develop a sovereign yield curve and provide a basis for firms in the country to raise funds. We believe that all governments in the GCC are aiming to delink debt issuances with the changes in oil prices to have a much more stable, sustainable and long-term fiscal strategy. It would also be positive for the sovereign rating as it removes ambiguity with respect to government's funding plans,' he said. Alexander noted that Kuwait could have continued using fiscal maneuvers to tap the Reserve Fund for Future Generations managed by the KIA by selling assets to it. 'But it's much cleaner to use debt financing, especially since borrowing costs are likely lower than the KIA's internal rate of return,' he said. Kuwait's last debt issuance was in 2017, just before the previous debt law expired. Efforts to pass a new law allowing a return to debt markets had been stalled for years due to political gridlock between parliament and the cabinet. Despite Kuwait's strong sovereign ratings (AA- by Fitch and A+ by S&P, both with stable outlooks) and low public debt levels, challenges remain. These include a lack of predictability and transparency, and weak implementation of fiscal reforms. Investor interest is high Still, Alexander said investor interest in Kuwait remains high. 'Although there are plenty of concerns about Kuwait, its very low debt stock and huge pool of foreign assets mean that investors are likely to be very comfortable holding Kuwaiti debt. The spreads will be tight, closer to Abu Dhabi than Saudi Arabia (which has the same average rating as Kuwait but a far weaker net asset position), but demand should be solid as a diversification play for those investing in regional debt.' According to S&P Global, Kuwait's debt stood at about 3% of GDP at the end of 2024, primarily comprising a $4.5 billion Eurobond maturing in 2027. Domestic debt is minimal, at around 0.1% of GDP. (Reporting by Brinda Darasha; editing by Seban Scaria)
Yahoo
27-05-2025
- Business
- Yahoo
Gulf Bank approves study on merger with Warba Bank
Gulf Bank has given the green light for a 'feasibility' study regarding a potential merger with Warba Bank. This move was confirmed in a recent board meeting held on 25 May 2025. The study is a response to a proposal from Warba Bank, which is a major shareholder in Gulf Bank, to consider the viability of combining the two entities into a single Islamic Sharia-compliant bank. The board's decision to proceed with the 'feasibility' study is part of Gulf Bank's strategy to explore opportunities for growth and enhance its position in the Islamic banking sector. The merger is expected to leverage the synergies of both banks to foster 'competitiveness' and growth. In line with regulatory compliance, Gulf Bank has informed the Central Bank of Kuwait of the board's decision and is awaiting further instructions. The bank will also obtain necessary approvals from the CBK and other regulatory bodies before engaging consultants to conduct the study, the bank said in a letter. Gulf Bank, with Kd 7.5bn in total assets as of March 31, 2025, operates over 50 branches and 300 ATMs in Kuwait. Meanwhile, Warba Bank offers a range of personal, corporate, business, and investment banking services. Warba Bank's indirect ownership of Gulf Bank comes through its purchase of Alghanim Trading Company, which led to Warba Bank holding 32.75% of Gulf Bank's capital. "Gulf Bank approves study on merger with Warba Bank " was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
