After its most difficult year since the first Gulf war, Kuwait is back from the brink. The country’s vaccine rollout is underway, with around 5% of its four million strong population receiving at least one dose as of mid-March. Oil revenues, which account for 90% of government revenue, have ramped up since November, with prices recovering from historic lows to pre-pandemic levels by early February.
Kuwaiti banks can take comfort from such trends after one of their most challenging years. While the sharp contraction of the economy in 2020 has had an inevitable impact on profitability and asset quality, the country’s financial sector remains well capitalised and well provisioned.
