Latest news with #MortgageLaw
Arab Times
13-05-2025
- Business
- Arab Times
Kuwait's Al Ahmadi sees strongest rental growth
KUWAIT CITY, May 12: Al Ahmadi apartments showed the strongest 6-month rental growth among governorates in Kuwait, with average rents for one-bedroom and two-bedroom units increasing by 6% and 10.9% over the last half-year to Q1 2025, according to Kuwait-based prop-tech company Sakan. Sakan's data, which is based on its online listings database and excludes properties promoted offline, showed mixed results for the apartment market, with average rents of areas near the capital softening over the last three and six months leading to Q1. In Hawally Governorate, the average rents of 1-bedroom, 2-bedroom, and 3-bedroom-listed flats decreased by 7%, 3%, and 1% respectively when compared to Q4 2024. Al Asimah's 2BR and 3BR average rents decreased by double digits. From a 6-month perspective, Hawally's and Al Asimah's rental markets have both seen downward performance. Hawally apartment rents for 1BR and 4BR apartments have remained the same, while those of 2BR and 3BR have declined by 2% and 4% respectively. Al Asimah apartments have shown similar patterns except for the 1BR category, whose average rent improved by 2% over the last half-year. But while areas near the capital have generally seen lower rents, Al Ahmadi's apartment sector saw an upward trend, driven by higher lease rates in Mahboula and Fintas districts. Among governorates, Ahmadi apartments have shown the best quarter-on-quarter performance in terms of rents, growing by 3%, 11%, and 10% for the 1BR, 2BR, and 3BR categories, respectively. Nearly 12,000 housing units turned over in 2024 The movement in rents can be attributed to a variety of events that have shaped Kuwait's residential leasing sector over the last six months. After the Mangaf fire, the government has cracked down on overcrowding in residential properties. At the same time, the leasing sector is seeing the effects of the massive residential construction boom sweeping across Kuwait, driven by the government's housing program. In 2024, the Public Authority for Housing Welfare distributed 11,897 housing units in Kuwait and issued 32,204 building permits in key residential projects, namely Mutlaa, South Abdullah Al-Mubarak, and South Khaitan. Anecdotes suggest that apartments which were rented by families waiting for their homes are now having challenges finding tenants. Home ownership is expected to increase in the forthcoming years with the anticipated introduction of the Mortgage Law, which will allow commercial lenders to provide housing loans. Once implemented, the Law is seen to encourage more lending activity in the housing sector, create a more competitive market, and potentially enable more citizens to own homes.
Zawya
29-04-2025
- Business
- Zawya
KPMG publishes latest report comparing Kuwait's leading listed banks' financial performance
Country average in terms of net profit (Y-O-Y) sees double-digit growth Noticeable spike in need to embed AI in banking; implementation paramount to support cost adjustments Kuwait: In a first, KPMG published a Kuwait-specific banking report comparing the country's leading banks' financial performance, titled Kuwait listed banks' results 2025. The report offers a comprehensive analysis of Kuwait's nine listed commercial banks' financial results for the year-ended 31 December 2024 compared with the prior year (year-ended 31 December 2023) to predict future directions and trends of the country's banking sector. Banks in Kuwait closed the year (year-ended 31 Dec 2024) strong, with the country's average increase year-on-year in terms of total assets (8.49%) and net profit (12.63%) in the green. The report also pointed at the dip in the banks' overall cost-to-income ratio from 47.61% (2023) to 47.26% (2024). With the broader sentiment of the report portraying a positive outlook for the country's banking sector, Bhavesh Gandhi, Partner and Head of Financial Services, KPMG Kuwait, said: 'Based on our analyses, the prospects for Kuwait's banking industry, supported by recent reforms such as the Public Debt Law and decline in interest rates, remains hopeful. If implemented, we expect the Mortgage Law to unlock newer investment opportunities for the banks that could help expand on lenders' credit portfolios. While it might be far-fetched to say how some of the initiatives may impact the sector on the long term, we are seeing some promise in bank-led initiatives, such as investments towards digitalization and refined cost management, that paints a buoyant picture for the future.' The KPMG publication probed deeper into the banks' performance based on eight key performance indicators (KPIs) to identify any underlying themes that could play a part in shaping Kuwait's banking industry. They were: (1) total assets; (2) net profit; (3) share price; (4) return on equity; (5) return on assets; (6) cost-to-income ratio; (7) loan by stage; and (8) non-performing loan ratio. Marking the significance of the newly implemented Public Debt Law in Kuwait, the report drew more attention to the strategic role the law could play in debt management by enabling banks to access the country's sovereign debt instrument. Although more remains to be seen and done regarding the proposed Mortgage Law, once implemented, KPMG analysts anticipate it to offer banks some sense of relief as it would enable them to offer mortgages up to KD 200,000 (approx. USD 649,000), with repayment periods extending to 25 years, and allow them to tap into alternate revenue pools. One of the primary findings from the report indicated that banking executives are divided by AI's transformative potential and the potential risks it brings with it. In Kuwait, larger strides with respect to the implementation of AI in banking remain to be taken, with one of the biggest challenges being convincing decisionmakers to view AI as a strategic rather a technology-based investment, underlined the report. It further emphasized that AI implementation in banks is not straightforward, given factors such as risk, compliance and regulatory complexities, security, and resistance to adoption continue to serve as headwinds. Addressing the role of AI in banking, Bhavesh added: 'AI implementation calls for an all-round rethink that encompasses strategy, culture, operations and ethics, and banks should consider viewing it as a driver of sustainable growth to tap into its full potential. Embedding AI on a cross-functional level would allow banks to create more innovative consumer-focused solutions that can enhance profitability and deepen customer loyalty.' Additionally, KPMG professionals weighed in that considering banks in Kuwait face elevated regulatory, technological and operational costs, there is an increasing need to relook at how they can better manage expenses without compromising on their efficiencies. While there is no universal solution to how banks could go about cost reduction, the expectation is that banks might take a closer lens to their spendings and discern more ways to minimize them, concluded the report. For more details, visit
Arab Times
29-04-2025
- Business
- Arab Times
KPMG publishes latest report comparing Kuwait's leading listed banks' financial performance; anticipates top trends for the banking sector
KUWAIT CITY, April 29: In a first, KPMG published a Kuwait-specific banking report comparing the country's leading banks' financial performance, titled Kuwait listed banks' results 2025. The report offers a comprehensive analysis of Kuwait's nine listed commercial banks' financial results for the year-ended 31 December 2024 compared with the prior year (year-ended 31 December 2023) to predict future directions and trends of the country's banking sector. Country average in terms of net profit (Y-O-Y) sees double-digit growth Noticeable spike in need to embed AI in banking; implementation paramount to support cost adjustments Banks in Kuwait closed the year (year-ended 31 Dec 2024) strong, with the country's average increase year-on-year in terms of total assets (8.49%) and net profit (12.63%) in the green. The report also pointed at the dip in the banks' overall cost-to-income ratio from 47.61% (2023) to 47.26% (2024). With the broader sentiment of the report portraying a positive outlook for the country's banking sector, Bhavesh Gandhi, Partner and Head of Financial Services, KPMG Kuwait, said: 'Based on our analyses, the prospects for Kuwait's banking industry, supported by recent reforms such as the Public Debt Law and decline in interest rates, remains hopeful. If implemented, we expect the Mortgage Law to unlock newer investment opportunities for the banks that could help expand on lenders' credit portfolios. While it might be far-fetched to say how some of the initiatives may impact the sector on the long term, we are seeing some promise in bank-led initiatives, such as investments towards digitalization and refined cost management, that paints a buoyant picture for the future.' The KPMG publication probed deeper into the banks' performance based on eight key performance indicators (KPIs) to identify any underlying themes that could play a part in shaping Kuwait's banking industry. They were: (1) total assets; (2) net profit; (3) share price; (4) return on equity; (5) return on assets; (6) cost-to-income ratio; (7) loan by stage; and (8) non-performing loan ratio. Marking the significance of the newly implemented Public Debt Law in Kuwait, the report drew more attention to the strategic role the law could play in debt management by enabling banks to access the country's sovereign debt instrument. Although more remains to be seen and done regarding the proposed Mortgage Law, once implemented, KPMG analysts anticipate it to offer banks some sense of relief as it would enable them to offer mortgages up to KD 200,000 (approx. USD 649,000), with repayment periods extending to 25 years, and allow them to tap into alternate revenue pools. One of the primary findings from the report indicated that banking executives are divided by AI's transformative potential and the potential risks it brings with it. In Kuwait, larger strides with respect to the implementation of AI in banking remain to be taken, with one of the biggest challenges being convincing decisionmakers to view AI as a strategic rather a technology-based investment, underlined the report. It further emphasized that AI implementation in banks is not straightforward, given factors such as risk, compliance and regulatory complexities, security, and resistance to adoption continue to serve as headwinds. Addressing the role of AI in banking, Bhavesh added: 'AI implementation calls for an all-round rethink that encompasses strategy, culture, operations and ethics, and banks should consider viewing it as a driver of sustainable growth to tap into its full potential. Embedding AI on a cross-functional level would allow banks to create more innovative consumer-focused solutions that can enhance profitability and deepen customer loyalty.' Additionally, KPMG professionals weighed in that considering banks in Kuwait face elevated regulatory, technological and operational costs, there is an increasing need to relook at how they can better manage expenses without compromising on their efficiencies. While there is no universal solution to how banks could go about cost reduction, the expectation is that banks might take a closer lens to their spendings and discern more ways to minimize them, concluded the report.
Al Bawaba
28-04-2025
- Business
- Al Bawaba
KPMG publishes latest report comparing Kuwait's leading listed banks' financial performance; anticipates top trends for the banking sector
In a first, KPMG published a Kuwait-specific banking report comparing the country's leading banks' financial performance, titled Kuwait listed banks' results 2025. The report offers a comprehensive analysis of Kuwait's nine listed commercial banks' financial results for the year-ended 31 December 2024 compared with the prior year (year-ended 31 December 2023) to predict future directions and trends of the country's banking in Kuwait closed the year (year-ended 31 Dec 2024) strong, with the country's average increase year-on-year in terms of total assets (8.49%) and net profit (12.63%) in the green. The report also pointed at the dip in the banks' overall cost-to-income ratio from 47.61% (2023) to 47.26% (2024). With the broader sentiment of the report portraying a positive outlook for the country's banking sector, Bhavesh Gandhi, Partner and Head of Financial Services, KPMG Kuwait, said:'Based on our analyses, the prospects for Kuwait's banking industry, supported by recent reforms such as the Public Debt Law and decline in interest rates, remains hopeful. If implemented, we expect the Mortgage Law to unlock newer investment opportunities for the banks that could help expand on lenders' credit portfolios. While it might be far-fetched to say how some of the initiatives may impact the sector on the long term, we are seeing some promise in bank-led initiatives, such as investments towards digitalization and refined cost management, that paints a buoyant picture for the future.' The KPMG publication probed deeper into the banks' performance based on eight key performance indicators (KPIs) to identify any underlying themes that could play a part in shaping Kuwait's banking industry. They were: (1) total assets; (2) net profit; (3) share price; (4) return on equity; (5) return on assets; (6) cost-to-income ratio; (7) loan by stage; and (8) non-performing loan the significance of the newly implemented Public Debt Law in Kuwait, the report drew more attention to the strategic role the law could play in debt management by enabling banks to access the country's sovereign debt instrument. Although more remains to be seen and done regarding the proposed Mortgage Law, once implemented, KPMG analysts anticipate it to offer banks some sense of relief as it would enable them to offer mortgages up to KD 200,000 (approx. USD 649,000), with repayment periods extending to 25 years, and allow them to tap into alternate revenue pools. One of the primary findings from the report indicated that banking executives are divided by AI's transformative potential and the potential risks it brings with it. In Kuwait, larger strides with respect to the implementation of AI in banking remain to be taken, with one of the biggest challenges being convincing decisionmakers to view AI as a strategic rather a technology-based investment, underlined the report. It further emphasized that AI implementation in banks is not straightforward, given factors such as risk, compliance and regulatory complexities, security, and resistance to adoption continue to serve as the role of AI in banking, Bhavesh added:'AI implementation calls for an all-round rethink that encompasses strategy, culture, operations and ethics, and banks should consider viewing it as a driver of sustainable growth to tap into its full potential. Embedding AI on a cross-functional level would allow banks to create more innovative consumer-focused solutions that can enhance profitability and deepen customer loyalty.' Additionally, KPMG professionals weighed in that considering banks in Kuwait face elevated regulatory, technological and operational costs, there is an increasing need to relook at how they can better manage expenses without compromising on their efficiencies. While there is no universal solution to how banks could go about cost reduction, the expectation is that banks might take a closer lens to their spendings and discern more ways to minimize them, concluded the report. For more details, visit
