"Encouraging Investment": Reforms and Digitalization Drive Economic Transformation in Kuwait
- A package of projects aims to attract $32 billion in foreign investments
- $120 billion total investments in infrastructure
- The Kuwaiti banking sector is among the most stable in the region
- Digital sectors account for one-third of foreign direct investment
The Authority added in a report published via the Bloomberg economic platform that Kuwait is entering a new stage of economic transformation, driven by structural reforms aimed at diversifying the economy, enhancing the role of the private sector, and attracting foreign capital, as Kuwait Vision 2035 approaches its midway point.
It confirmed that the country is working to build a more dynamic and sustainable economy through updating legislation, developing infrastructure, and enabling innovation, thereby strengthening its position as a technology- and digital economy-driven investment destination.
It continued: "Kuwait continues to implement large-scale infrastructure projects and public-private partnerships, boosting the construction sector and opening new investment opportunities. Among the most prominent are the new passenger terminal at Kuwait International Airport, expected to commence operations in 2027, and the Port of Shuwaikh, which enhances Kuwait’s role as a regional commercial and logistics hub."
Indicators point to approximately 300 infrastructure projects currently under implementation, with the value of offered projects exceeding $27 billion. Additionally, $5.7 billion has been allocated for infrastructure and essential services during the current fiscal year, while total infrastructure investments have reached approximately $120 billion since the launch of Kuwait Vision 2035.
The Authority for Investment Promotion and Export Development clarified that Kuwait is seeking to transition from a historically oil-dependent model to a more diversified economy led by the private sector, leveraging oil reserves estimated at around 6% of global reserves.
It noted that a new package of projects aims to attract $32 billion in foreign investments and create 50,000 job opportunities, alongside a plan to reduce public spending by 30% and enhance the role of global investors in supporting non-oil growth.
Kuwait possesses several investment advantages, including allowing 100% foreign ownership, having 93 bilateral investment promotion and protection agreements, 10 public-private partnership projects currently under implementation, and a 15-year residency program for qualified investors.
The Authority stated that the Kuwaiti banking sector is among the most stable in the region, supported by the Central Bank of Kuwait’s oversight and high bank capitalization levels, while the Kuwait Stock Exchange serves as a platform for attracting global capital.
Digital transformation also constitutes a central pillar of Kuwait’s economic strategy, with government spending on digital infrastructure expected to exceed $3.7 billion during the current fiscal year.
Digital sectors accounted for approximately one-third of foreign direct investment in Kuwait between 2015 and 2024, with 33.2% in information technology, 24.6% in oil and gas, and 15.5% in construction and infrastructure. Advanced technology also tops investors’ priorities over the next three years, with 59% interest in Kuwait compared to 48% globally.
The Authority for Investment Promotion and Export Development emphasized that the “Invest in Kuwait” campaign reflects the country’s direction toward building a future-oriented economy based on innovation and partnership, leveraging its financial strength, accelerating digital transformation, and evolving the regulatory environment.
