The Central Bank of Kuwait has issued the final version of its Open Banking Regulatory Framework, a step intended to open the way for local banks and fintech companies to offer innovative products and services, according to local press reports. The aim is to develop banking and financial services in Kuwait and promote digital transformation, the reports said.
The central bank said in a statement that it issued the final text after studying all the views and comments submitted on the draft it put out in June 2025, as part of its commitment to transparency and participation. The central bank said it regulates open banking through supervisory instructions and security, technical and operating standards in line with international best practice, so that financial institutions it licenses can offer open banking services in Kuwait.
WHAT THE RULES ALLOW
Under the framework, local banks can share customer data securely with account information service providers and payment initiation service providers licensed by the central bank, with the customer's explicit consent, the central bank said.
Services that can be developed include consolidated information on a customer's accounts at different local banks, tracking spending, saving and spending plans, and simpler handling of loans and letters of guarantee. The scope also covers creating payment orders directly from bank accounts and comparing the banking products on offer.
The framework is meant to strengthen cooperation between local banks and fintech companies, widen digital services and make financial transactions more efficient, according to the reports. The framework is part of the central bank's work to develop fintech and set supervisory frameworks for modern banking business models, while ensuring the protection of customer data and the security of financial operations, the reports said.
FROM DRAFT TO FINAL TEXT
The Central Bank of Kuwait first published the framework in draft form to keep up with the latest fintech innovations, and invited observations and recommendations for four weeks from the date of issue through a designated email address, according to its press statement at the time.
While it worked on the rules, the central bank allowed a fintech company to test open banking services in its regulatory sandbox, Wolooj, so that the trial could inform its instructions and standards. It said the draft aimed to support digitisation in line with the New Kuwait 2035 vision, and it thanked the Kuwait Banking Association and fintech firms for their support.
A CONCENTRATED MARKET
Kuwait's banking system comprises ten Kuwaiti banks (five conventional, four Islamic and the specialised Industrial Bank of Kuwait) and 11 branches of foreign banks registered with the central bank, according to the TGB market profile. Local banks' domestic balance sheet stood at KD105.9bn in September 2026.
Concentration is high. National Bank of Kuwait, which consolidates its majority-owned Islamic subsidiary Boubyan Bank, and Kuwait Finance House reported consolidated assets of KD45.6bn and KD42.8bn at end-2025, against KD9.1bn for the next-largest group, Burgan Bank.
THE TGB VIEW
National Bank of Kuwait ranks 11th and Kuwait Finance House 12th in TGB's regional ranking, with returns on equity of 11.5% and 9.9% for the year to December 2025. The two groups reported consolidated assets of KD45.6bn and KD42.8bn at end-2025, against KD9.1bn for Burgan Bank, the next-largest group in Kuwait. When it published the draft, the central bank said services would launch in a phased approach and after sufficient testing, so the first licensed providers are the step to watch.
Related: Central Bank of Kuwait approves Gulf Bank's full conversion to Islamic banking
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