The war’s impact on Kuwait’s power and utility infrastructure is opening a financing pipeline Mashreq wants in on

The shadow of regional conflict may dampen the appetite of some foreign investors (albeit not all, if the recent investment blitz in the UAE is anything to go off of). However, regional institutions will likely be stepping up their game as they lean into the Gulf’s compelling growth story and expanding pipeline of prospects.

There is no shortage of lending prospects for regional banks, Mashreq’s Kuwait Head Ammar Boumijdad tells EnterpriseAM. In fact, if anything, there’ll be more to come in the near term, he adds, and they’ll carry even more weight as regional countries look to repair affected infrastructure and diversify their supply chains amid ongoing supply chain disruptions.

REMEMBER- The Gulf is now facing a whopping USD 58 bn repair bill for existing energy infrastructure, as well as rising raw material costs.

For regional players, the current climate is less a reason to retreat and more an opening to step up. That’s especially the case for countries in the region with plenty of room to grow and diversify into different sectors, like Kuwait.

Kuwait’s growth story is an interesting one. The country is benefiting from a raft of reforms implemented since the dissolution of parliament in 2024, including the removal of the requirement for foreign companies to operate through a local agent, a higher sovereign debt ceiling, and a big push in spending on projects and infrastructure. Even through the conflict, Kuwait awarded some USD 8.1 bn in contracts in 1Q 2026 alone, up more than fivefold y-o-y, with a USD 36 bn project pipeline as of the end of last year.

The regional war has had an impact on the region’s infrastructure, particularly facilities like power stations and other critical utilities. “We’ve had initial talks with contractors; and we told them: we’re ready to support you. We’re ready to partner with clients by providing competitive and well-structured financing solutions — considering our situation,” Boumijdad says. Projects that will need financing support span power stations, renewables, and infrastructure, he adds.

The shift to disciplined growth

The bank’s ability to offer this support today is the result of a multi-year strategic pivot. Since starting operations in Kuwait in 2009, Mashreq has moved away from the fragmented retail and SME sectors to focus almost exclusively on large corporates, government-related entities, and multinationals.

“Our risk appetite has changed [over time],” Boumijdad notes. Over the last decade, and particularly through the last five years, the bank has pursued a strategy of “disciplined growth,” he adds. This means being highly selective with new-to-bank clients and during periods of high uncertainty, focusing on deepening relationships with existing, high-quality clients.

“In situations where uncertainty is high, we like to deepen our relationship with existing [clients] because we know their risk profile,” Boumijdad explains.

The multinationals window

The bank is also tracking a surge in interest from multinational giants following the removal of the local agent requirement in 2024, which is transforming Kuwait’s investment landscape, Boumijdad tells us. Companies like Google and Microsoft are already moving to build massive data centers in the country, supported by government land grants and facilities.

“Kuwait has strong fundamentals: USD 1 tn+ sovereign wealth, a strong credit profile — still rated AA- — and low sovereign debt giving plenty of room to borrow, which gives comfort for any investors [who want to] come,” he adds. “As regulations evolve, capital markets deepen, and strategic projects accelerate, banks with regional scale and international connectivity, like ourselves, will play a critical role,” he adds.

For Mashreq, which is a regional bank at its core but is also international, with offices in the US and across various parts of Asia, this is prime territory. The lender is in a strong position to finance companies with presence across those different corridors — Kuwait and the US, or Kuwait and the rest of the GCC. “Instead of going all the way there to a new country and a new bank that hasn’t dealt with you before, you’ll be dealing with us — we know you and we know your risk profile and accept it,” Boumijdad says.