Finance Minister: Kuwait demonstrated high resilience in facing economic challenges

Finance Minister Dr. Yaqoub Al-Rafai participated in a meeting of finance ministers and central bank governors from the Middle East and North Africa, Afghanistan, and Pakistan (MENAP) region, alongside International Monetary Fund (IMF) Managing Director Kristalina Georgieva, with Central Bank of Kuwait Governor Bassel Al-Haroun also in attendance. The meeting discussed key regional economic developments and the challenges facing the region’s economies amid ongoing geopolitical tensions and their economic repercussions.

The discussions covered economic developments in the region and growth prospects for 2026 and 2027, as well as the impact of regional conditions on economic activity, particularly in the energy, trade, transport, logistics, and tourism sectors. Participants also explored ways to strengthen economies’ resilience to shocks and maintain economic and financial stability.

The meeting addressed priorities for economic and fiscal policies in the coming period, emphasizing the importance of rebuilding fiscal buffers, enhancing expenditure efficiency, safeguarding priority investments and social safety nets, thereby supporting fiscal sustainability and bolstering countries’ capacity to manage economic fluctuations.

During his intervention, the Minister emphasized that Kuwait has demonstrated strong resilience in the face of exceptional economic challenges, supported by robust financial reserves and prudent economic policies that have helped maintain macroeconomic stability and contain inflationary pressures. He also highlighted the importance of enhancing preparedness to address future shocks, particularly given risks associated with disruptions in the Strait of Hormuz and their implications for energy markets, supply chains, and economic activity.

He stressed the need to continue implementing economic reforms under Kuwait’s Vision 2035, which aims to strengthen the role of the private sector, stimulate investment and economic diversification, and leverage artificial intelligence opportunities to boost productivity. He also underscored the importance of enhancing regional cooperation and supply chain security, commending the IMF’s role in providing economic advice and the contributions of its regional center in Kuwait in capacity building and knowledge exchange.

Kuwait’s participation in the meeting reflects its commitment to monitoring regional and international economic and financial developments, and strengthening dialogue and cooperation with international financial institutions and regional countries, thereby supporting economic and financial stability and advancing the country’s developmental objectives.

On another note, Al-Rafai met yesterday with Ousmane Dione, Vice President of the World Bank for the Middle East and North Africa, Afghanistan, and Pakistan regions. The meeting referenced the encounter between His Highness the Crown Prince, Sheikh Sabah Al-Khaled, and World Bank Group President Ajay Banga on the sidelines of the 81st session of the UN General Assembly in New York, and reaffirmed the importance of building on the discussions held during that meeting and following up on areas of cooperation identified.

The two sides also discussed ways to enhance cooperation between Kuwait and the World Bank Group, particularly in developing the skills of national cadres, capacity building, and providing technical and advisory support. They also emphasized the importance of increasing the employment of Kuwaitis within the World Bank, both at its headquarters and in its regional offices.

Additionally, Al-Rafai met with Tsutomu Yamamoto, Managing Director of the Multilateral Investment Guarantee Agency (MIGA). The meeting discussed ways to strengthen cooperation between Kuwait and the Agency, expand the scope of guarantee and insurance services against geopolitical risks, and reaffirmed the Agency’s role in encouraging Kuwaiti banks and companies to expand their investments in emerging markets and other countries.

During the meeting, the parties discussed opportunities to expand partnerships with Kuwaiti financial institutions, particularly in the fields of trade finance guarantees and enhancing financial capacity. The Minister emphasized the importance of broadening the Agency’s role in providing appropriate guarantees and financial solutions for Kuwaiti investors, thereby bolstering their confidence and supporting the diversification of their investments in international markets.