Kuwait's stock market surges with record foreign investments in 2025
Kuwait's stock market has seen a sharp rise in activity and foreign investment over the past year. Trading volumes surged by 71.3 percent in 2025, with shares worth $86.6 billion changing hands. The growth reflects stronger confidence in the country's financial markets and regulatory improvements.
The Kuwait Stock Exchange recorded net foreign inflows of $1.5 billion in 2025, placing it third in the Gulf after Saudi Arabia and Abu Dhabi. This followed a steady increase in foreign institutional investments, which climbed from around $2.5 billion in 2020 to over $8 billion by 2025. A key driver was Kuwait's 2020 upgrade to emerging market status by MSCI and FTSE Russell, which attracted significant capital between 2021 and 2023.
Norway's sovereign wealth fund has also expanded its presence in Kuwait. Its holdings in Kuwaiti equities grew from $333.5 million in 2020 to $838.58 million by the end of 2025—a cumulative increase of about 151 percent. The fund's investments in the country rose by 14.87 percent annually in 2025 alone, reaching $838.58 million across 13 listed companies. Top holdings include the National Bank of Kuwait ($506.1 million), Kuwait Finance House ($111.2 million), and Gulf Bank ($77.78 million).
The fund's strategy targets key sectors such as banking, real estate, logistics, and consumer services. Analysts attribute the growing appeal of Kuwait's market to regulatory reforms, greater transparency, and a widening base of listed firms. Kuwait's share of total Gulf trading also rose to 14.3 percent in 2025, signalling heightened interest from international investors.
The expansion of foreign investments and rising trading volumes highlight Kuwait's strengthened position in regional markets. With continued reforms and a diversified economy, the stock exchange is likely to remain a key destination for institutional capital. The latest figures confirm its role as a major player in the Gulf's financial landscape.
