Kuwait issues decree ratifying financial cooperation agreement with UAE
MoU targets tax reform, debt management, economic policy coordination
Kuwait has issued Decree No. 83 of 2026 approving a Memorandum of Understanding (MoU) with the United Arab Emirates aimed at strengthening bilateral cooperation in the financial sector. The agreement was signed in Dubai on February 2, 2026.
The decree, published in Kuwait Today, confirms approval of the MoU and stipulates that it will enter into force upon completion of the required national legal procedures in both countries.
The agreement is designed to deepen financial and economic cooperation between Kuwait and the UAE on the basis of mutual benefit, with the broader goal of supporting economic stability and advancing sustainable development in both nations.
Broad Scope of Financial and Economic Cooperation
The MoU outlines extensive areas of collaboration, including the development of economic and financial policies to enhance stability, reforms in direct and indirect taxation systems, and the exchange of expertise in financial legislation and regulatory frameworks.
It also covers coordination in the preparation and execution of state budgets, public financial governance, modernization of financial management systems, and the development of financial planning mechanisms. Additional focus areas include financial technology, innovation, and the production of economic and financial studies and reports.
Debt management is also a key pillar of cooperation, with both sides agreeing to exchange best practices in debt strategy design, risk assessment, and restructuring mechanisms. The agreement further encourages coordination with regional and international financial institutions and organizations.
Implementation Mechanisms and Institutional Coordination
To ensure effective implementation, the MoU provides for a range of cooperation mechanisms, including regular economic and financial dialogues, expert-level visits, training programs, workshops, and seminars. It also encourages the exchange of consultations, statistical data, publications, and policy research.
Both parties will appoint liaison officers to oversee coordination and facilitate communication through diplomatic channels.
Legal Framework and Duration
The agreement affirms that it does not affect any existing bilateral, regional, or international obligations of either country. It also specifies that any disputes arising from interpretation or implementation will be resolved through diplomatic consultation rather than legal proceedings.
The MoU will remain in force for three years from the date of entry into effect, with automatic renewal for similar periods unless either party provides written notice of termination at least six months prior to expiry.
