Kuwait Amir’s directives usher in comprehensive economic reforms
The State of Kuwait, under His Highness the Amir’s directives, is accelerating reforms to achieve economic development and financial sustainability through building strategic partnerships with major countries.
His Highness the Amir Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah has repeatedly emphasized the importance of ensuring sustainability of the national economy, a guideline for every government to make major transformations in reforms, economy, production and human resources.
The seven agreements signed between Kuwait and the People’s Republic of China, in September 2023 constituted one of the most important milestones driving development efforts in Kuwait.
Kuwait is working to diligently implement the recommendations that were agreed upon during the visit of His Highness the Amir to China last year.
The Kuwaiti government recently intensified discussions with the Chinese side, represented by the Commissioner-General of the representative office for the Middle East and Africa, with the aim of overcoming obstacles and support efforts to put the agreements into effect as soon as possible.
Kuwait Investment Authority, meanwhile, is moving to seize investment opportunities and enhance its presence in promising markets, especially in Saudi Arabia, as the authority decided on June 25, 2024 to open an office in the Kingdom of Saudi Arabia to enhance cooperation with Saudi and international companies in joint projects.
Al-Zour Refinery project, which was inaugurated by His Highness the Amir last May, added a new strategic dimension to Kuwait with the aim to advance development and strengthen the country’s leading position.
The government is also planning to launch major policies and create solid legislative structure that keeps pace with the process of economic and financial reform, and creates an attractive environment for investments.
In order to integrate a vision in this regard, The Council of Ministers assigned the Ministry of Finance to draw up policies about financial and economic reforms in a way that ensure the financial sustainability as well as maximizing non-oil revenues.
The Council of Ministers also formed a committee to prepare priorities and main theme of the for its action plan and a specific execution timetable.
The committee is headed by the Minister of Finance with Minister of Public Works, Minister of Commerce and Industry, the Minister of Electricity, Water and Renewable Energy and members.
On July third, 2024, the Minister of Finance and Minister of State for Economic Affairs and Investments Dr. Anwar Al-Mudhaf, affirmed that the pillars of economic reforms have the support of His Highness the Amir.
During the first general budget forum held by the Ministry of finance of July 14th, 2024, the Ministry confirmed that Kuwait is embarking on comprehensive financial reform to address areas of waste and develop revenues for the state’s financial sustainability.
The expected reforms in this aspect include improving government procurement contracts, repricing public services and rents of state-owned lands, in addition to develop financial performance of government bodies.
In addition, the government is moving forward with major development projects that contribute to improving Kuwait financial condition, Including Failaka Island, Al-Shaqaya Renewable Energy Complex, North Economic Zone, Digital economic projects, Mubarak Al-Kabeer port and expansion of many industries.
Kuwait is based on solid economic foundation and great financial wealth, upon which Moody’s has established credit rating for Kuwait’s at A1, with future outlook remaining stable. Moody’s stated in mid-May 2024 that the credit rating of Kuwait reflects the continued strength of both the general budget and financial buffers in the foreseeable future, while maintain macroeconomic stability and external balance.
Regarding budget development, Moody’s expected that continued strong performance of the general budget and financial reserves in the near future, will enhance the strength of the country’s sovereign credit rating.
The Council of Ministers approved on July second, 2024 the budget draft law for the fiscal year (2024/25), as its expected that non-oil revenues will record an increase of 16.08 percent in a first step towards enhancing non-oil revenues. Projected revenues for the fiscal year (2024/25) are estimated at KD 18.9 billion (about USD 61.6 billion) a decrease of 2.8 percent, while the total expected expenses amount to KD 24.5 billion (about USD 79.9 billion), a decrease of 6.6 percent compared to the previous fiscal year.
Source: KUNA
