Kuwaiti ministers affirm country’s commitment to economic diversification, market reforms

On the sidelines of the 56th Annual Meeting of the World Economic Forum in Davos, senior Kuwaiti officials reaffirmed the country’s commitment to economic reform and its determination to build confidence with global investors, as part of a broader strategy to attract high-quality international investments.

Minister of Finance, Minister of Electricity, Water and Renewable Energy, and Acting Minister of State for Economic Affairs and Investment, Dr. Subaih Al-Mukhaizeem, together with Minister of Commerce and Industry Khalifa Al-Ajil, highlighted key economic developments in Kuwait and outlined the government’s reform agenda aimed at strengthening the national economic environment.

In an interview with Bloomberg, Dr. Al-Mukhaizeem stressed that the government continues to enhance the business climate, stimulate local and foreign investment, and improve the efficiency of public spending to support sustainable economic growth and bolster the economy’s resilience to regional and global challenges, reports Al-Jarida daily.

He noted that Kuwait has made tangible progress in economic diversification, adding that the next phase will focus more intensively on comprehensive development and broadening the economic base in line with the state’s strategic vision.

Dr. Al-Mukhaizeem reiterated the government’s commitment to implementing reforms that diversify income sources and enhance financial sustainability.

He explained that while oil still accounts for about 58 percent of GDP, non-oil revenues have grown by approximately 3 percent annually, reflecting the effectiveness of recent financial policies and structural reforms. He added that upcoming reforms will target several vital sectors, most notably housing and the non-oil economy.

He also revealed that the Minister of Housing has announced an ambitious plan to double the residential real estate market within seven to ten years by accelerating housing projects, upgrading infrastructure, and strengthening partnerships with the private sector to meet growing demand and improve citizens’ quality of life.

For his part, Minister of Commerce and Industry Khalifa Al-Ajil said that the attractiveness of the Kuwaiti market to foreign investors is built on an integrated reform path that combines legislative modernization with the development of financial markets.

Speaking to KUNA after meetings with leading international firms — including Goldman Sachs, BlackRock, Franklin Templeton Investment, and Investcorp — Al-Ajil emphasized that these reforms enhance market efficiency, transparency, and investor confidence.

Al-Ajil reviewed the significant progress achieved by the Kuwait Stock Exchange, noting that its market capitalization rose from $131 billion in 2023 to around $175 billion in 2025, with an average annual growth rate of 14.5 percent.

He added that trading values jumped to $87 billion in 2025, while foreign ownership increased to approximately $27 billion, reflecting growing international confidence in Kuwait’s regulatory framework.

He pointed out that the market witnessed fundamental infrastructure reforms in July 2025 with the entry into force of Capital Markets Authority Resolution No. (101) of 2025, describing the move as a qualitative shift that enhances efficiency, transparency, and the ability to attract long-term institutional investments, in line with Kuwait’s economic diversification goals.

Al-Ajil also highlighted the newly enacted Digital Trade Law, calling it a pivotal milestone in modernizing Kuwait’s economic environment and a clear signal of the country’s strategic direction toward supporting the digital economy. He said the law was well received by global investment firms as a practical indicator of Kuwait’s commitment to long-term, high-quality investment.

Both ministers affirmed Kuwait’s keenness to continue dialogue with major international investment institutions and to strengthen strategic partnerships, underscoring the Cabinet’s pivotal role in supporting legislative and economic reforms that position Kuwait as an active and competitive investment hub in the region.

The World Economic Forum’s annual meeting brings together more than 3,000 participants, including heads of state and government, senior policymakers, and global business leaders, to discuss key issues such as economic growth, technology, investment in people, peace and security, and sustainable development.