In a report titled Middle Eastern Banks Outlook in 2025, Fitch predicted that the business environment for Kuwaiti banks in 2025 will be largely similar to 2024, with real GDP growth expected to be 3.1 percent in 2025 and real non-oil GDP growth of 2.4 percent, with asset quality, liquidity and financing in Kuwaiti banks stabilizing in 2025.
Fitch expects credit growth in the banking sector to rise to 5-6 percent in 2025 and loan quality to remain stable, with lower phase III loan ratios and phase II loan ratios moderate. Restructuring and write-offs will continue to support asset quality, but banks will remain exposed to event risk due to high concentrations on single debtors and certain sectors, especially real estate and construction.
Source (Al-Rai Kuwaiti Newspaper, Edited)
