The real estate and construction sectors accounted for 31.7 per cent of the total value of credit facilities extended by local banks to various economic sectors in February.
Real estate developers and construction companies borrowed KWD9.8 billion (KWD1 = USD3.3135 as of the time this story was published), up by 4 per cent year-on-year, indicating that this sector remains a key driver of economic activity.
According to the report by the Kuwait Finance House, the total value of credit facilities to all economic activities in the country inched up by 1 per cent to KWD30.86bn.
The figures show that credit facilities to financial institutions (other than banks) slumped by 11 per cent year on year to KWD1.39bn.
Higher credit facilities in a specific period of time signals a pickup in economic activity, meaning more investments and projects are launched.
Kuwait, a major oil exporter, depends heavily on crude revenues to finance its budget and public expenditure.
According to a recent study by the Kuwaiti Institute of Banking Studies, Kuwait’s budget surplus plunged by a massive 50 per cent during the 2014-15 fiscal year, falling to KWD8.3bn.
The slump is mainly driven by the fall in crude oil prices in international markets.