The Banking Sector of Kuwait has been expanding at a rapid pace in the recent past. This has led to the emergence of multiple job opportunities in Kuwait. The following post explores the banking sector of Kuwait. Read on to know more.
While the Middle Eastern region is always noticed for its oil sector, it does not imply that other sector has been lying dormant. With globalization booming, the economy of the region has been flourishing with grand job offers in various sectors. Whether it is jobs in UAE, jobs in Kuwait or even jobs in the entire Middle Eastern region, various sectors like banking and finance, travel and tourism have been generating revenues to a great extent for the overall economy of the region.
Kuwait—the Emerging Economy
If we shift focus on Kuwait, we will realize that though this particular country has been less in focus, has now started coming up in a big way. The banking and finance sector of the country has come up in big way and has remained largely unaffected by the economic and the political turbulence of the region. In 2012, the banking and finance sector has recorded a strong growth that continued till 2013. The growth is expected to stay stable in the coming years. The government has taken up the initiative to improve all the segments and is encouraging private sector investments. It goes without saying that the banking sector has created multiple job opportunities. Finance and accounting jobs in Kuwait has increased in leaps and bounds in the recent past with several expatriated being employed in the sector. While the rest of the Arab World was busy dealing with political upheavals, especially countries like Egypt and Syria, the finance sector in Kuwait continued to scale greater heights and thus ensuring more job opportunities. Expansion of the finance sector in countries like Turkey has heralded in a new beginning of the of the overall finance sector of the region.
Banking Sector of Kuwait
Central Bank of Kuwait (CBK), one of the leading banks in Kuwait has an average banking asset of nearly $185 billion deposits. This keeps increasing as the shareholders’ account begins to increase at least by 4.1 percent annually. In the words of the CBK governor, the banking sector in Kuwait still continue to be well capitalized with a high percentage of liquidity ratio. By the end of 2012, the total assets ratio stabilized at about 25%.
By the end of 2012, bank credits grew by 5% with non-financial business and consumer credit performing very strongly. Similarly, according to the National Bank of Kuwait (NBK)’s reports published earlier in 2013, banks continued to support high levels of liquidity ratio. However, despite so much of growth, experts opine that the banking sector could have performed in a much better fashion as compared to earlier years’ performance. For many, 2012 has been a turbulent year. But due to their immense focus on the local markets, there have been tremendous capital expenditures. Currently, the banks are in the process of launching products that are particularly tailored to suit the need for even smaller businesses.
In the coming years a new loan growth is expected to be witnessed that is believed to be increasing the stimulus from the government. The credit growth has remained somewhat modest in Kuwait which has been mostly due to political upheavals in the region. Nonetheless, on the other hand, stability in stick market prices and also within the real estate sector might have an impact on the banking and finance sector of the region.
The government is currently instrumental at the internal risk management techniques. Such a measure is expected to boost the banking and the financial sector of the country to a great extent. Through the Kuwait Investment Authority, the government has granted Kuwaiti nationals equal sharing. The government has further plans to execute multiple development plans by founding organizations and financial institutions on a public-private partnership. On these terms, the foundation of the Warba Bank is a milestone in the banking sector of Kuwait.
Keeping in mind the current scenario of the banking sector in Kuwait, it can be said that the future prospects are well off and as far as jobs are concerned, the sector is bound to generate more jobs thereby continuing to contribute to the GDP.