Study on the Impact of Kuwait's Banking Sector on the Kuwait National Development Plan (KNDP)

Executive Summary

Kuwait's banking sector will be central to delivering the Kuwait National Development Plan (KNDP) and Kuwait Vision 2035, which aims to build a diversified, knowledge-driven economy. Vision 2035 also targets cutting the government's role in development projects from 90% to 30% 40%. That shift makes bank and private-sector financing essential, especially as the fiscal breakeven oil price has risen.

Recent reforms, including the public debt law, a minimum tax on multinationals and progress on the mortgage law, are expected to support growth. Marmore MENA Intelligence projects near-term credit growth of 5%–7% for Kuwaiti banks. Growth could reach 7%–10% with the mortgage law and KNDP project financing. Lending to education, healthcare and renewables remains limited.

Progress on Vision 2035 has been slowed by gaps in policy, regulation, implementation and funding. Global peers show banks playing a central role in SME finance, digitalisation and ESG.