Decree-Law on financing, liquidity allocates 30 billion dinars over 50 years

The Decree-Law No. 60 of 2025 regarding financing and liquidity was issued today, Wednesday, March 26, 2025. The decree sets the public debt ceiling at a maximum of KWD 30 billion, or its equivalent in major convertible foreign currencies. It also allows the issuance of financial instruments with maturities of up to 50 years. The law is valid for 50 years from the date of its entry into force, establishing a long-term legal framework for regulating public borrowing and liquidity management in Kuwait.

Regarding this, Minister of Finance and Minister of State for Economic Affairs and Investment, Noura Al-Fassam, commented that this law grants Kuwait greater financial flexibility by allowing the option to tap local and international financial markets to enhance liquidity management. This reflects a strategic approach to keeping pace with global economic developments and ensuring the sustainability of the state’s public finances. This law is part of the government’s efforts to enhance financial stability and support economic development in line with Kuwait Vision 2035.

Faisal Al-Muzaini, Director of the Public Debt Management Department at the Ministry of Finance, outlined the key objectives of the decree-law, as follows:

• Providing the state with access to various types of financial instruments through both local and international financial markets, enabling financing in Kuwaiti dinars or major convertible foreign currencies. This offers multiple options for managing public debt and liquidity.
• Contributing to the financing of major development projects, whether in infrastructure or other strategic areas, drives the progress of development.
• Stimulating the local economy by boosting the economic cycle, enhancing investor confidence, and attracting more foreign investments that support economic growth.
• Enhancing Kuwait’s sovereign credit rating, which positively impacts the state’s ability to borrow on competitive terms.
• Maintaining the liquidity of sovereign reserves, ensuring the country’s financial stability and enhancing the government’s ability to meet its financial obligations under various economic conditions.

The importance of the law in the global and local economic context, as Al-Muzaini stated that this decree-law comes at a time when global financial markets are witnessing rapid changes, and the ability to access financing flexibly has become a key factor in ensuring economic stability. Additionally, developing local debt markets enhances Kuwait’s competitiveness as a regional financial center and provides the government with new financial tools to efficiently manage public finances.

This initiative reflects the state’s commitment to adopting a sustainable financial approach that balances the need to finance development projects while ensuring long-term financial sustainability, in line with international best practices in public debt and liquidity management.

Al-Fassam concluded her remarks by emphasizing that this law represents a significant step in the path of financial and economic reforms, aimed at building a more diversified and sustainable economy that serves the interests of both the state and its citizens.

Source: Al Anba