-- ------------- -------------- ------------------- -------------------
Thursday , February 9 2023

Hike in investment sector profits; Global, local interest rates improve

This post has been read 6017 times!

KUWAIT CITY, Nov 27: Financing operations for the investment sector from local banks and other financial institutions at the beginning of the third quarter amounted to about KD 1.051 billion, compared to KD 960 million for the same period last year, with the increase amounting to about KD 91 million, which is 9.4 percent, reports Aljarida daily. According to investment and banking sources, many major investment companies have recently relied on their internal liquidity and cash flows, especially since the beginning of this year, in anticipation of the course of global conditions, in addition to developments in the interest rates globally, regionally and locally.

In light of the current scene, it has been observed that there is a commitment and demand for payments that outweigh the renewal or restructuring operations as long as there is an abundance of comfortable liquidity. Meanwhile, the sources stated that there was an equation during the periods of low and declining interest by requesting financing in large amounts and moving them towards the financial market where abundant profit rates were achieved after the debt was paid. It is expected that the requests for financing will be active during the current quarter, after the results of the third quarter painted the profit landscape and gave a thumbnail picture of the whole year, especially the operating base in the market. In a related context, sources in major financial companies indicated that they have good liquidity, some of which are in short term deposits, and others are on demand, awaiting or looking for suitable opportunities with acceptable risks.

They said there is a state of anticipation for a different economic form related to the launch of new projects, some of which are ready, suspended or postponed, adding that the decision will be faster than others in offering to the private sector. It is noteworthy that the total financing of the conventional sector at the end of the third quarter amounted to about KD 428.8 million, and the Islamic finance sector about KD 622.8 million.

Check Also

Kuwait 14th in the Arab world for 2021 FDIs

This post has been read 6018 times! KD 198 million attracted in growth KUWAIT CITY, …