Gulf banking rivalry intensifies in Egypt: Kuwaiti banks challenge Emirati dominance

ADIB-Egypt leads Emirati expansion, while NBK-Egypt tops Kuwaiti growth

Kuwaiti banks account for 4.08 per cent of the sector’s deposit increase in H1 2026, compared to 3.31 per cent for Emirati banks

Kuwaiti banks achieve EGP 10.41 bn higher deposit growth, while Emirati banks maintain their lead in loans by EGP 8.38 bn

The H1 2026 results reveal a notable shift in competition between Emirati and Kuwaiti banks operating in Egypt, as Kuwaiti banks strengthened their share of sector deposits, while their Emirati counterparts maintained larger portfolios.

First Bank’s analysis of seven banks, comprising four Emirati and three Kuwaiti lenders, revealed a notable competitive contrast. Kuwaiti banks led deposit growth by EGP 10.41 bn, while Emirati banks maintained their lead in loans by EGP 8.38 bn.

Kuwaiti banks strengthen their share of sector deposits

Kuwaiti banks added EGP 54.88 bn to customer deposits during H1 2026, accounting for 4.08 per cent of the Egyptian banking sector’s total deposit increase of approximately EGP 1.345 tn, compared to EGP 44.47 bn for Emirati banks, representing 3.31 per cent.

This outperformance was supported by 11.9 per cent growth in the Kuwaiti group’s deposits, exceeding the sector’s average growth of 8.5 per cent, while Emirati banks recorded a growth rate of 4.8 per cent.

This performance was reflected in market shares, with the three Kuwaiti banks’ share of total sector deposits increasing from 2.93 per cent at end-2025 to 3.02 per cent at end-June 2026, while the four Emirati banks’ share declined from 5.91 per cent to 5.71 per cent.

National Bank of Kuwait – Egypt (NBK-Egypt) led Kuwaiti expansion, adding EGP 25.77 bn, followed by Al Ahli Bank of Kuwait – Egypt (ABK-Egypt) with EGP 20.53 bn, and Kuwait Finance House – Egypt with approximately EGP 8.58 bn.

On the other hand, ADIB-Egypt led Emirati expansion, adding EGP 54.57 bn, exceeding the group’s overall net increase individually, as the EGP 35.37 bn decline in First Abu Dhabi Bank – Egypt’s deposits offset growth at other Emirati banks.

Loans reveal a different picture: Emirati banks lead in value, while Kuwaiti banks record faster growth

Regarding loans, Emirati banks maintained their lead in absolute growth, adding approximately EGP 50.86 bn to their portfolios during H1 2026, compared to EGP 42.48 bn for Kuwaiti banks.

ADIB-Egypt led Emirati expansion with an increase of EGP 43.36 bn, while NBK-Egypt topped Kuwaiti growth, adding EGP 25.92 bn, followed by Kuwait Finance House – Egypt with approximately EGP 15.53 bn.

Despite the Emirati lead in absolute terms, the Kuwaiti group recorded faster growth of 13.5 per cent, compared to 9.9 per cent for Emirati banks, highlighting differences in expansion rates relative to each group’s existing loan portfolio.

However, faster Kuwaiti growth was insufficient to close the absolute gap, which stood at EGP 8.38 bn in favour of Emirati banks, confirming that higher growth rates do not necessarily translate into larger portfolio increases.

Emirati banks retain the largest market presence, while Kuwaiti banks gain ground in deposit competition

Despite Kuwaiti banks’ progress, Emirati banks continued to hold larger portfolios, with total deposits reaching EGP 976.81 bn at end-June 2026, compared to EGP 517.28 bn for Kuwaiti banks, while loans stood at EGP 562.03 bn versus EGP 357.41 bn, respectively.

This dominance is also evident historically, as Emirati banks added approximately EGP 578.98 bn to their deposits since end-2022, compared to EGP 296.87 bn for their Kuwaiti counterparts, reflecting the expansion of the Emirati group’s business base over recent years.

The key contrast is therefore becoming clearer: Kuwaiti banks are achieving relative gains against their Emirati competitors, but the competition between the two groups is taking place within a broader market where other banks’ growth also influences their overall market shares.

Accordingly, the results do not indicate a transfer of dominance from Emirati to Kuwaiti banks, but rather a relative redistribution of growth gains. Emirati banks retain their larger market presence, while Kuwaiti banks strengthen their deposit position, with future market share gains depending on their ability to keep pace with the Egyptian banking sector’s overall growth.