The credit rating agency "Moody's" expected that Kuwait will record the highest inflation level in the Gulf countries this year, indicating that high commodity prices, the easing of the restrictions of “Corona” will promote a strong economic recovery in the major Islamic finance markets over the next 18 months, which will enhance the financial performance of Islamic banks.
According to the agency, the Gulf countries, Malaysia and Indonesia are benefiting from the high prices of major exports such as hydrocarbons and palm oil. Noting that the economic recovery will lead to maintaining the stability of the asset quality of Islamic banks while increasing profitability, and therefore, Islamic banks can maintain strong levels of capital and liquidity, this enables it to take advantage of the increasing demand for financial services that are compliant with Islamic law.
Moody's data showed that Kuwait recorded the highest real GDP growth rate in the Gulf, Malaysia and Indonesia, according to 2022 expectations, after it had recorded the lowest level among these countries in 2020.
Source (Al-Rai Kuwaiti Newspaper, Edited)
