Kuwait assures financial stability as 2026/2027 budget targets reform and growth
37% surge in capital spending signals Kuwait’s push toward economic diversification
Minister of Finance Dr. Yaqoub Al-Rifai has reaffirmed Kuwait’s financial stability, unveiling key details of the estimated 2026/2027 state budget while emphasizing continued reforms to strengthen sustainability and diversify income sources.
In remarks to Kuwait Television, Al-Rifai said the budget reflects a clear commitment to financial and economic reform, improving spending efficiency, boosting non-oil revenues, and positioning the private sector as the main engine of growth and job creation.
Despite ongoing regional tensions, he stressed that Kuwait continues to enjoy a strong and stable credit rating from international agencies, underscoring the resilience of its financial position and prudent fiscal management. This stability, he noted, enhances investor confidence and supports partnerships with global institutions, reports Al-Rai daily.
Al-Rifai described the country’s financial situation as “stable and reassuring,” confirming that salary payments will continue on schedule, with no delays expected. He highlighted that liquidity remains sufficient, pointing to the timely disbursement of March salaries as proof of the government’s financial readiness across short-, medium-, and long-term horizons.
The minister revealed that total projected revenues stand at 16.3 billion dinars, down 10.5 percent, against expenditures estimated at 26.1 billion dinars. The budget is based on an oil breakeven price of $90.5 per barrel, while the conservative estimated price is set at $57, with production expected at 2.6 million barrels per day.
He noted that salaries and subsidies account for 76 percent of total spending, including 15.8 billion dinars allocated for wages and 3.96 billion for subsidies. Fuel subsidies alone amount to 1.77 billion dinars, followed by education support at 963.7 million and social subsidies at 533.1 million.
Al-Rifai highlighted a 37 percent increase in capital expenditure and a 20 percent rise in non-oil revenues—both seen as positive indicators of progress toward economic diversification. The government, he added, is actively enhancing revenue streams through improved fee systems, better service delivery, and strengthened financial structures.
He also clarified that while oil prices have recently risen, the current budget does not fully benefit due to disruptions in exports. However, any price above $57 per barrel would positively impact public finances once normal conditions resume.
On the banking front, he pointed to measures taken by the Central Bank of Kuwait to enhance liquidity flexibility and strengthen the financial sector, alongside state guarantees on bank deposits that reinforce public confidence.
The minister disclosed that Kuwait employs more than 402,000 citizens in the public sector, while the government continues to encourage private sector employment through financial support programs. Around 14,518 new government jobs are planned as part of ongoing workforce initiatives.
Major development projects outlined in the budget include the expansion of Kuwait International Airport, the Mubarak Al-Kabeer Port, the North Kabd wastewater treatment plant, major road maintenance works, and the second phase of the Subbiya power station.
Additional plans include building 48 new schools, expanding healthcare facilities, and developing cultural centers and sports stadiums across the country.
Al-Rifai praised the efforts of government, security, and health institutions in managing the recent crisis, noting their professionalism and coordination under the leadership of HH the Prime minister Sheikh Ahmed Al-Abdullah Al-Ahmad Al-Sabah, with the support of HH the Amir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah and HH the Crown Prince Sheikh Sabah Al-Khaled Al-Hamad Al-Sabah.
He concluded by stressing that Kuwait remains focused on maintaining stability, advancing reforms, and navigating regional challenges while ensuring sustainable economic growth.
