The National Bank of Kuwait (NBK) is placing the financing of national mega projects at the forefront of its strategic priorities, its Group Vice Chairman and CEO said.
Speaking at the Analyst Conference for the first half of 2024, Issam Al-Sager underscored the bank’s role in supporting Kuwait’s ambitious infrastructure development plans. 

“Spearheading Kuwait’s infrastructure programme is our top priority as we expect financing national mega-projects,” he said. 

Discussing the broader economic conditions, Al-Sager noted improvements in consumer spending, business credit, real estate, and project activity as potential catalysts for non-oil growth.

He highlighted the significant rebound in project activity during the second quarter, noting a five-fold increase quarter-on-quarter. “This is driven mainly by activity related to infrastructure works in the construction, transport and power & water sectors,” he explained.

Looking ahead, Al-Sager outlined a promising outlook for project awards, with projects valued at approximately 7 billion Kuwaiti dinars ($23 billion) in the pipeline in 2024. 

“We believe that the rebound in project awards will continue in 2024 and 2025, as after dissolving the parliament, the decision making is in the hands of the government, which makes it much easier,” he said. 

The NBK official said this has significantly accelerated the implementation of mega projects, evident across various sectors. 

“There will be further awards in 2024 and 2025, but it is too early to give certain numbers at this point in time,” he cautioned.

On a regional level, Al-Sager projected solid growth across the Gulf Cooperation Council (GCC) countries, bolstered by robust oil prices. “Regionally, growth in the GCC area is expected to remain solid as oil prices continue to feed fiscal positions of the governments and supporting strides in their diversification agendas and capital expenditure plans.”

NBK reported net profits of KWD292.4 million for the first half of 2024, marking a 6.2 percent increase. The bank’s net profits for the second quarter of 2024 rose by 3.3 percent year-on-year to KWD145.8 million.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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