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Kuwait Financial Centre Markaz stated in its monthly market review that Kuwait equities remained resilient in March 2026 despite sharp drawdowns in global equity markets and escalating geopolitical tensions across the Middle East. The Kuwait All Share Index declined mildly by 1.8 percent during the month while the banking sector index fell 0.7 percent. Banking stocks delivered mixed results with National Bank of Kuwait shares down 2.8 percent, Kuwait Finance House shares down 1.9 percent and Kuwait International Bank shares up 1.4 percent.
S&P Global Ratings affirmed an AA-/A-1+ rating with a stable outlook for the Kuwaiti banking sector according to the Markaz report which highlighted strong asset quality with non-performing loans at 1.5 percent and provisioning buffers around 252 percent. The Central Bank of Kuwait unveiled a stimulus package that eased liquidity and capital requirements while raising the lending ratio to 100 percent. Jazeera Airways shares plunged 22.3 percent after disruptions linked to the closure of Kuwait International Airport the report added.
Real estate transaction value reached KD 518 million in February according to data cited in the Markaz review representing a 119 percent month-on-month increase with every segment posting gains and commercial property sales climbing to KD 184 million. The report noted that these figures demonstrated sustained activity even as external pressures mounted. Markaz analysts pointed to the stimulus measures and solid banking fundamentals as supporting factors for the relative stability.
The S&P GCC composite index declined 2.3 percent in March while the Dubai Financial Market fell 16.4 percent the Markaz report showed. In comparison global equities suffered steeper losses with the MSCI World Index down 6.6 percent and the S&P 500 index declining 5.1 percent. A State Street Global Advisors assessment published in April 2026 found that geopolitical tensions had increased market volatility by 27 percent yet historical patterns indicated equities often recover from such shocks even while conflicts remain unresolved.
Brent crude surged 63.3 percent to USD 118.35 a barrel during the period covered by the Markaz analysis as supply concerns intensified amid regional instability. An Investing.com review of March 2026 equity performance reported that global stocks recorded their largest single-month decline on record with USD 12 trillion in market value erased. The Markaz report identified ongoing geopolitical tensions as the primary driver likely to influence market direction through April.
Kuwait’s banking sector has continued to exhibit resilience underpinned by robust capital buffers and conservative lending practices the research firm observed. Domestic banks appear well positioned to withstand potential further volatility stemming from external developments. The report recommended continued monitoring of both local fundamentals and international risk factors.
