Kuwait: Limited Exposure to Collapse of SVB

The financial sector in Kuwait said that it had registered limited exposure to the collapse of Silicon Valley Bank. (Asharq Al-Awsat)
The financial sector in Kuwait said that it had registered limited exposure to the collapse of Silicon Valley Bank. (Asharq Al-Awsat)
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Kuwait: Limited Exposure to Collapse of SVB

The financial sector in Kuwait said that it had registered limited exposure to the collapse of Silicon Valley Bank. (Asharq Al-Awsat)
The financial sector in Kuwait said that it had registered limited exposure to the collapse of Silicon Valley Bank. (Asharq Al-Awsat)

The financial sector in Kuwait announced that it had registered limited exposure to the collapse of Silicon Valley Bank.

The Central Bank of Kuwait (CBK) affirmed on Sunday that the exposure of Kuwaiti banks to Silicon Valley Bank (SVB), following the closure of the bank by the US authorities, was “very, very limited”.

The National Bank of Kuwait (NBK) said in a statement that its exposure was “minimal” and would not affect the bank’s financial position.

The disclosure published on the Boursa Kuwait website said NBK’s small exposure was represented in off-balance sheet items in the form of letters of guarantee worth $4.9 million (around 1.5 million Kuwaiti dinars).

For its part, Kuwait Finance House announced on Monday that the value of its exposure to the Silicon Valley Bank was in the range of 381,000 Kuwait dinars ($1.2 million).

Eight Kuwaiti banks listed on the Kuwait Stock Exchange confirmed Monday that they were not exposed to SVB, which was closed by the US authorities due its bankruptcy last week.

Those included Warba, Boubyan, Kuwait International (KIB), Ahli United, Al Khaleej, Al-Tejari, Al-Ahli and Burgan.

In its statement, the CBK pointed to the stability of the conditions of the banking system’s units.



Arab Financial Markets Improve Amid Trump Inauguration

A Saudi dealer monitors the stock market in Riyadh. (Reuters)
A Saudi dealer monitors the stock market in Riyadh. (Reuters)
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Arab Financial Markets Improve Amid Trump Inauguration

A Saudi dealer monitors the stock market in Riyadh. (Reuters)
A Saudi dealer monitors the stock market in Riyadh. (Reuters)

Arab financial markets reacted positively to the inauguration of US President Donald Trump for a new term on Monday, despite concerns from some nations about the tariffs he plans to impose. The tariffs are expected to affect global trade flows and pricing.

Trump’s swearing-in also coincided with the start of a ceasefire between Israel and Hamas on Sunday, which is set to have a favorable impact on market sentiment.

Experts told Asharq Al-Awsat that easing geopolitical tensions in the Middle East has played a role in boosting economic stability across Arab markets. They anticipate significant improvements in market performance throughout the region, particularly in the Gulf, in the near future—raising optimism for robust economic growth.

Mohammed Al-Farraj, Senior Head of Asset Management at Arbah Capital, noted that global economic forecasts point to noticeable improvement following Trump’s inauguration.

In remarks to Asharq Al-Awsat, Al-Farraj attributed this optimism to several key factors, including heightened political stability, strengthened supply chains, and supportive monetary and fiscal policies introduced by the new US administration.

The gradual reduction of tariffs on US imports is expected to have a major impact on the labor market and inflation, fostering a more stable and growth-friendly economic environment for Arab markets, particularly those in the Gulf, he went on to say. The Saudi Stock Exchange (Tadawul) is poised to lead this growth.

Dr. Salem Baajajah, an economic expert and academic at King Abdulaziz University, told Asharq Al-Awsat that Trump’s inauguration is likely to generate substantial gains for US markets due to his pro-growth policies. This, in turn, will positively influence global financial markets, especially in the Gulf.

Reduced geopolitical tensions in the Middle East—along with the Gaza truce and prisoner exchange agreements—have further strengthened economic stability across Arab markets, he added.

Meanwhile, most Arab and Gulf stock markets closed higher on Monday, achieving varying levels of gains.

The Saudi Stock Exchange’s main index (TASI) ended Monday’s session up by 0.40%, closing at 12,379 points—its highest level since May 8. The increase was driven by a 4.4% rise in Aqua Power shares, while Aramco, the heaviest-weighted stock on the index, remained flat at SAR 28.15.

The Qatari index climbed 0.40% to close at 10,508 points, supported by a 2.2% rise in Industries Qatar shares. Kuwait’s index rose by 0.53%, while the Abu Dhabi Securities Exchange saw a modest increase of 0.08%.

Dubai’s main index, however, declined by 0.30%, impacted by a 2.9% drop in Salik shares. Similarly, Bahrain’s index fell slightly by 0.08%.

Outside the Gulf, Egypt’s blue-chip index slipped 0.37%, weighed down by a 0.9% decline in shares of Commercial International Bank. Morocco’s Casablanca Stock Exchange index dropped by 0.33%. Conversely, Oman’s Muscat Stock Exchange posted a slight gain of 0.03%.