Kuwait continued to strengthen its presence in the US Treasury bond market, with the value of its holdings reaching $66.81 billion by the end of May 2026, reaffirming its investment strategy of allocating part of its assets to US sovereign debt—widely regarded as one of the safest and most liquid financial instruments in the world.
Data released by the US Treasury Department on Wednesday showed that Kuwait’s investments in US Treasury bonds increased by 17.17 percent year-on-year, representing a rise of $9.79 billion compared to $57.02 billion recorded at the end of May 2025. The figures reflect a significant expansion in Kuwait’s holdings over the past 12 months.
Holdings also increased by approximately $760 million, or 1.15 percent, since the beginning of the year, rising from $66.05 billion at the end of December 2025. The continued growth comes despite fluctuations in global financial and bond markets during the period.
Slight Monthly Decline
On a monthly basis, Kuwait’s holdings registered a modest decline of 1.11 percent, or approximately $750 million, compared to $67.56 billion at the end of April 2026—the highest level ever recorded for Kuwait’s investments in US Treasury bonds.
The decline is viewed as a routine portfolio rebalancing adjustment and does not alter the broader upward trend, which continues to reflect Kuwait’s substantial investment in US government debt.
The data also showed that long-term Treasury bonds accounted for the overwhelming share of Kuwait’s portfolio, valued at $64.25 billion, while short-term Treasury securities stood at $2.56 billion, indicating a preference for long-term investments that offer stable returns.
Among the Leading Arab Investors
Among Arab countries, Saudi Arabia remained the largest investor in US Treasury bonds, with holdings of $140.3 billion, ranking 17th globally among foreign investors. The United Arab Emirates followed with $118.6 billion, placing 19th globally, while Kuwait continued to rank among the region’s leading investors in US government debt.
Globally, Japan remained the largest foreign holder of US Treasury bonds with investments totalling $1.14 trillion, followed by the United Kingdom with $948.6 billion and China with $659.3 billion. Other leading positions were held by major economies and sovereign wealth funds around the world.
According to data released by the US Treasury Department and reported by Al Qabas, total foreign holdings of US Treasury bonds rose to $9.37 trillion by the end of May 2026, up from $9.02 trillion a year earlier, representing annual growth of 3.88 percent. Holdings also increased by 0.21 percent on a monthly basis, highlighting continued global demand for US debt instruments despite changing interest rates and evolving international economic conditions.
The monthly data published by the US Treasury Department covers investments by governments, central banks, and official institutions in US Treasury bills and bonds. It does not include other public or private investments within the United States, such as equities, corporate bonds, or direct investments.
