Cabinet reviews sovereign credit reports, highlights global confidence in Kuwait’s economy, Kuwait Airways restructuring
-
- Kuwait maintains strong sovereign credit ratings as Cabinet advances economic reforms, Kuwait Airways restructuring and green development initiatives
Kuwait has reaffirmed its strong standing in international financial markets after the Cabinet reviewed the Supreme Committee for Sovereign Credit Rating Governance’s report for the first half of 2026, confirming the country’s stable credit position and continued confidence from the world’s leading rating agencies.
The Cabinet, chaired on Tuesday by His Highness Sheikh Ahmed Abdullah Al-Ahmed Al-Sabah, Prime Minister, reviewed a presentation by Minister of Finance and Chairman of the Supreme Committee for Sovereign Credit Rating Governance, Dr. Yaqoub Al-Rifai, outlining Kuwait’s sovereign credit performance.
According to the report, Kuwait continues to enjoy high investment-grade sovereign ratings from the three major international credit rating agencies. Standard & Poor’s and Fitch Ratings have maintained Kuwait’s rating at AA-, while Moody’s continues to rate the country at A1, with all three agencies assigning a stable outlook.
The report noted that Kuwait’s strong ratings reflect the resilience of its economy, prudent financial management, and sustained confidence among international investors.
It also highlighted that Standard & Poor’s upgraded Kuwait’s sovereign rating by one notch in November 2025, citing the government’s financial reform momentum and the implementation of Decree-Law No. 60 of 2025 on Financing and Liquidity, which enhanced financing flexibility and strengthened the country’s public debt framework.
Despite recent regional tensions, the report said the three rating agencies maintained Kuwait’s ratings without any negative action, underscoring the country’s solid financial fundamentals and the continued confidence of global markets.
The committee affirmed that it will continue coordinating with relevant government entities to monitor rating indicators and advance financial and economic reforms to safeguard the sustainability of Kuwait’s sovereign credit profile.
Cabinet approves Kuwait Airways restructuring
In another major decision, the Cabinet approved a draft decree-law transforming Kuwait Airways into a state-owned shareholding company. The draft legislation has been submitted to His Highness the Amir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah for final approval.
The move is expected to strengthen the airline’s corporate governance framework while preserving full government ownership.
Green initiatives receive Cabinet approval
The Cabinet also reviewed recommendations submitted by the Ministerial Committee for Public Services, including a report from the Green Urban Development Initiatives Committee.
The initiatives, proposed by government oil companies, private sector firms, cooperative societies and individual contributors, include projects to landscape and green major roads, develop public squares and parks in residential areas, and repaint several key bridges across Kuwait’s governorates.
The Cabinet approved the proposals and expressed appreciation to all participating organizations and individuals for supporting Kuwait’s environmental sustainability goals and urban beautification efforts.
Special recognition was given to Ahmadi Governor Sheikh Hamoud Jaber Al-Ahmad Al-Sabah, Chairman of the Green Urban Development Initiatives Committee, and committee members for encouraging social responsibility, expanding green spaces, improving Kuwait’s urban landscape, and contributing to sustainable development.
The Cabinet also reviewed additional reports and recommendations from several ministerial committees, approving a number of decisions while referring others for further study and recommendations before final implementation.
Cabinet briefed on Amir’s meeting with UAE President
At the beginning of the session, ministers were briefed on the recent meeting between His Highness the Amir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah and UAE President His Highness Sheikh Mohammed bin Zayed Al Nahyan, who paid a fraternal visit to Kuwait last Thursday.
The meeting, attended by His Highness the Crown Prince Sheikh Sabah Khaled Al-Hamad Al-Sabah and Prime Minister Sheikh Ahmed Abdullah Al-Ahmed Al-Sabah, focused on strengthening the longstanding brotherly relations between Kuwait and the UAE.
The two leaders discussed expanding bilateral cooperation across various sectors, reviewed regional and international developments, particularly the evolving situation in the Middle East, and reaffirmed their support for initiatives aimed at promoting peace, security and regional stability.
Discussions also emphasized the importance of strengthening Gulf unity and enhancing the role of the Gulf Cooperation Council in achieving greater prosperity for its member states.
Cabinet observes official mourning for Qatar’s Father Amir
The Cabinet was also informed of the Amir’s directive declaring four days of official mourning and lowering Kuwaiti flags nationwide and at diplomatic missions abroad following the passing of Sheikh Hamad bin Khalifa Al Thani, Qatar’s Father Amir.
Ministers extended heartfelt condolences to His Highness Sheikh Tamim bin Hamad Al Thani, the Qatari leadership, the ruling family and the people of Qatar, describing the late leader as a visionary statesman whose wisdom and dedication left a lasting mark on Qatar, the Gulf region, and the wider Arab and Islamic worlds.
The Cabinet also issued a statement strongly condemning the attacks referenced during the meeting, reaffirming Kuwait’s commitment to safeguarding its sovereignty, protecting its citizens and residents, and preserving national security in accordance with international law and the Charter of the United Nations.
The Cabinet stressed Kuwait’s right to take all necessary measures to protect its territory and maintain security and stability.
