Kuwait's openness to attracting global companies boosts foreign investment inflows

Parallel to Kuwait’s vigorous efforts to enhance investment and economic opportunities, the government’s openness has yielded tangible results, attracting global companies and driving a significant inflow of foreign investment into the country. This comes as the state intensifies its comprehensive initiatives to achieve sustainable development.

The recent announcement by Kuwait Petroleum Corporation (KPC) regarding the signing of the “Shahin Project” agreement, valued at $16 billion, represents a qualitative leap in supporting the state’s efforts to diversify funding sources and strengthen the participation of global investors in the national economy. The project aims to generate financial returns from existing assets through a lease-and-leaseback model for crude oil pipelines, valued at $16 billion, thereby providing substantial cash returns estimated at $7.85 billion.

The project stands as the largest foreign direct investment (FDI) in Kuwait’s history and serves as one of the pillars of the financing and capital expenditure plan, which aims to raise crude oil production capacity to 4 million barrels per day by 2035. The agreement was signed with a consortium of leading global investors in the infrastructure sector and investment institutions, led by investment funds managed by Blackstone, Brookfield, and KKR.

Inward FDI flows to Kuwait reached approximately 126.4 million dinars, equivalent to about $412.4 million, during 2025. The Central Bank of Kuwait confirmed that the stock of FDI in Kuwait has continued to grow in recent years, reaching approximately 5.4 billion dinars, equivalent to about $17.6 billion, by the end of 2025. This reflects the accumulation of existing foreign direct investments in the Kuwaiti economy and the country’s enduring attractiveness as an investment destination.

In a statement issued last July, the Central Bank clarified that the concept of FDI includes investments that grant the foreign investor an influential stake of at least 10% in an enterprise within or outside the country. It excludes investments in securities where ownership is less than this threshold, as well as financial derivatives, deposits, loans, and other financial instruments. The bank noted that when the data scope is expanded to include all financial instruments, total inward flows rise to approximately 11.8 billion dinars, equivalent to about $38.5 billion.

Kuwait ranked fifth in the Arab region and 52nd globally in the 2025 “Guarantee” (WAEC) Investment Climate Index, having moved up two positions compared to the 2024 index. According to the Arab Organization for Industrialization and the Arab Export Credit Guarantee Corporation (WAEC), the volume of inward FDI flows to the country reached $497 million.

The strength of the strategy to attract foreign investment was reflected in its latest fruits at the end of last July, when Blackstone, the world’s largest alternative asset manager, announced plans to open an office in Kuwait through the Public Authority for Investment Promotion. This move enhances its presence in the Gulf Cooperation Council (GCC) countries.

Meanwhile, global asset management firm Franklin Templeton officially commenced operations in Kuwait in late June, a step that reinforces the country’s status as a strategic investment hub. Franklin Templeton is one of the world’s largest asset management companies, serving clients in more than 150 countries through a wide range of investment solutions, wealth management, and fintech services. The company manages assets exceeding $1.64 trillion as of the end of August 2025.

The company intends to contribute to the targets of “Kuwait Vision 2035” by enhancing specialized financial services, supporting economic diversification, and participating in human capital development through capacity-building programs, alongside encouraging the adoption of modern fintech within the Kuwaiti investment ecosystem.

Franklin Templeton’s entry into the Kuwaiti market is part of a series of openings by global financial institutions to Kuwait since September of last year, when BlackRock, the world’s largest asset manager, opened its Kuwait office as part of its regional network, nearly a year ago.