Norway's Wealth Fund Bets Big on Kuwait's Booming Stock Market

Norway's sovereign wealth fund has sharply increased its investments in Kuwait over the past five years. By the end of 2025, its holdings in Kuwaiti equities reached $838.58 million, up from $333.5 million in 2020. This 151 percent growth signals rising confidence in the country's financial markets.

The fund, managed by Norges Bank Investment Management, now holds stakes in 13 Kuwaiti companies. Its total exposure represents roughly 1.2 percent of the Kuwait Stock Exchange's market capitalisation. The largest investments include National Bank of Kuwait ($506.1 million), Kuwait Finance House ($111.2 million), and Gulf Bank ($77.78 million).

The fund's strategy targets key sectors: banking, real estate, logistics, investment, and consumer services. Its Kuwaiti portfolio grew by 14.87 percent annually in 2025 alone, climbing from $729.9 million at the end of 2024.

Kuwait's stock market also saw a surge in activity last year. Trading volumes jumped 71.3 percent to 117.3 billion shares, while market liquidity improved significantly. Net foreign inflows reached $1.5 billion, placing Kuwait third in the Gulf region behind Saudi Arabia and Abu Dhabi.

The fund's expanding presence in Kuwait highlights its belief in the economy's stability and the market's growth potential. With stronger liquidity and rising foreign investment, Kuwait's financial sector appears to be gaining momentum. The trend suggests continued interest from international investors in the coming years.