Al-Rifai: Kuwait Capable of Withstanding Economic Shocks with Support from Financial Reserves

Finance Minister Dr. Yaqoub Al-Rafai affirmed that Kuwait has demonstrated a high capacity for resilience in the face of exceptional economic challenges, supported by strong financial reserves and prudent economic policies that have contributed to maintaining macroeconomic stability and containing inflationary pressures.

This statement came during Al-Rafai’s participation in the meeting of Finance Ministers and Central Bank Governors of the Middle East and North Africa, Afghanistan, and Pakistan (MENAP) region, held with International Monetary Fund (IMF) Managing Director Kristalina Georgieva, with Central Bank of Kuwait Governor Basil Al-Haroun also in attendance, as part of Kuwait’s participation in the Annual Meetings of the World Bank Group and IMF Boards of Governors in Bangkok.

Al-Rafai stressed the importance of enhancing preparedness to face future shocks, particularly risks associated with disruptions in the Strait of Hormuz and their repercussions on energy markets, supply chains, and economic activity.

He confirmed the continued implementation of economic reforms under Kuwait’s Vision 2035, which aims to strengthen the role of the private sector, stimulate investment and economic diversification, and leverage opportunities in artificial intelligence to boost productivity. He also emphasized the importance of enhancing regional cooperation and supply chain security.

He appreciated the IMF’s role in providing economic advice and the contributions of its regional center in Kuwait in capacity building and knowledge exchange.

The meeting discussed key regional economic developments and challenges facing the region’s economies amid ongoing geopolitical tensions and their economic repercussions, as well as growth prospects for 2026 and 2027, and the impact of regional conditions on energy, trade, transport, logistics, and tourism sectors.

Participants also explored ways to strengthen economies’ capacity to withstand shocks and maintain economic and financial stability, as well as priorities for economic and fiscal policies in the coming period, including rebuilding fiscal buffers, improving expenditure efficiency, and safeguarding priority investments and social safety nets, thereby supporting fiscal sustainability and enhancing resilience to economic changes.

Kuwait’s participation comes in line with its commitment to monitoring regional and international economic and financial developments, and strengthening dialogue and cooperation with international financial institutions and regional countries, in order to support economic and financial stability and advance the state’s developmental objectives.