[Kuwait] Banks tighten lending criteria for expats over Kuwaitization and job cut concerns

In Kuwait, local banks are tightening lending criteria for expatriates as concerns over job security, Kuwaitisation and potential contract terminations lead lenders to be more selective about credit, Arab Times reports.

Though the move isn’t a suspension of lending to expats, according to banking sector sources, lenders are now considering whether borrowers’ jobs will remain secure throughout the repayment period.

The roles under greater scrutiny are government positions affected by Kuwaitisation, jobs considered surplus and occupations facing restructuring. They reportedly include some government school teachers in specialisations affected by surplus staffing plans, and employees of cooperative societies and public benefit organisations.

Banks are still willing to lend to expats in ‘secure’ professions, including doctors, engineers, healthcare professionals, technicians and employees in technology and AI. Teachers in specialisations not considered vulnerable to Kuwaitisation remain eligible.

In addition, banks are scrutinising employers’ financial strength, reputation and salary payment records. Employees of companies listed on Boursa Kuwait or employers already approved by a lender could reportedly receive more favourable consideration.

High-value expat customers who have substantial deposits, assets or end-of-service benefits continue to enjoy preferential treatment, including potentially higher financing limits and competitive rates.

Source: Arab Times

In Kuwait, local banks are tightening lending criteria for expatriates as concerns over job security, Kuwaitisation and potential contract terminations lead lenders to be more selective about credit, Arab Times reports.

Though the move isn’t a suspension of lending to expats, according to banking sector sources, lenders are now considering whether borrowers’ jobs will remain secure throughout the repayment period.

The roles under greater scrutiny are government positions affected by Kuwaitisation, jobs considered surplus and occupations facing restructuring. They reportedly include some government school teachers in specialisations affected by surplus staffing plans, and employees of cooperative societies and public benefit organisations.

Banks are still willing to lend to expats in ‘secure’ professions, including doctors, engineers, healthcare professionals, technicians and employees in technology and AI. Teachers in specialisations not considered vulnerable to Kuwaitisation remain eligible.

In addition, banks are scrutinising employers’ financial strength, reputation and salary payment records. Employees of companies listed on Boursa Kuwait or employers already approved by a lender could reportedly receive more favourable consideration.

High-value expat customers who have substantial deposits, assets or end-of-service benefits continue to enjoy preferential treatment, including potentially higher financing limits and competitive rates.

Source: Arab Times