Kuwait sets KD 30 billion debt ceiling with 50-year borrowing framework

• Amid global financial shifts, the decree-law enhances Kuwait’s economic stability, strengthens its position as a regional financial hub, and equips the government with advanced debt management tools.

Decree-Law No. (60) of 2025 on financing and liquidity was issued, setting the public debt ceiling at a maximum of KD 30 billion Kuwaiti or its equivalent in major convertible foreign currencies. The law permits the issuance of financial instruments with maturities of up to 50 years and remains in effect for the same duration, establishing a long-term legal framework for public borrowing, Al Rai newspaper reported.

Eng. Noura Al-Fassam, Minister of Finance and Minister of State for Economic Affairs and Investment, said, “This law grants the State of Kuwait greater financial flexibility by allowing it to tap into local and international financial markets to enhance liquidity management. It reflects a strategic approach to keeping pace with global economic developments and ensuring the sustainability of the country’s public finances. This law is part of the government’s efforts to enhance financial stability and support economic development in line with Kuwait Vision 2035.”

Al-Fassam emphasized that this law represents an important step in the financial and economic reform process, aimed at building a more diversified and sustainable economy that serves the interests of both the state and its citizens.

Faisal Al-Muzaini, Director of the Public Debt Management Department at the Ministry of Finance, outlined the key objectives of the decree-law:

• Providing the state with various financial instruments through local and international financial markets, allowing access to financing in Kuwaiti dinars or major convertible foreign currencies, and offering multiple options for managing public debt and liquidity.
• Developing local capital markets by creating a benchmark sovereign yield curve, which enhances the attractiveness of Kuwaiti financial markets, provides a reference for bank loans and corporate borrowing, and helps reduce financing costs.
• Supporting the financing of major development projects, including infrastructure and other strategic initiatives, to drive economic growth.
• Stimulating the local economy by enhancing the economic cycle, boosting investor confidence, and attracting foreign investments that support sustainable growth.
• Strengthening the country’s sovereign credit rating, which will improve Kuwait’s ability to secure financing on competitive terms.
• Maintaining sovereign reserve liquidity to ensure financial stability and enhance the government’s ability to meet its financial obligations under various economic conditions.

The law’s importance in the global and local economic context

Al-Muzaini also noted that this decree-law comes at a time of rapid change in global financial markets, where flexible access to financing is essential for economic stability. Furthermore, developing local debt markets strengthens Kuwait’s position as a regional financial hub and provides the government with advanced financial tools to manage public finances more efficiently.

This step reflects the state’s commitment to adopting a sustainable financial approach that balances the need to finance development projects while ensuring long-term fiscal stability, in line with international best practices in public debt and liquidity management.