Economy
From The Report: Kuwait 2025
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Kuwait is continuing its efforts to transform the economy and diversify away from hydrocarbons. Guided by its long-term policy blueprint, New Kuwait 2035, the country’s efforts are centred on boosting private sector participation, digitalising key aspects of the economy and rolling out new infrastructure investment. With renewed momentum under Emir Sheikh Mishal Al Ahmad Al Jaber Al Sabah, Kuwait is implementing broad-based governance, judicial and economic reforms that are designed to improve efficiency, attract foreign capital and strengthen the foundations for sustainable and innovation-led long-term growth. A milestone was reached in 2025 with the passage of a new debt law widening the government’s financing options and enabling Kuwait to issue its first debt instruments in over five years. The outlook for Kuwait’s economy is positive, with the IMF revising its GDP forecast to 2.6% – driven by an expanding non-oil sector and the easing of OPEC+ production reduction limits.

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Overview

Resilient model: An uptick in non-oil activity is a positive sign of Kuwait’s ability to transition towards a more resilient economy
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Kuwait is continuing its efforts to transform the economy and diversify away from hydrocarbons. Guided by its ambitious long-term policy blueprint, New Kuwait 2035, the country’s efforts are centred on boosting private sector participation, digitalising key aspects of the economy and rolling out major new infrastructure investment. With renewed momentum under Emir Sheikh Mishal Al Ahmad Al Jaber Al Sabah, Kuwait is implementing broad-based governance, judicial and economic reforms that are designed to improve efficiency, attract foreign capital and strengthen the foundations for sustainable and innovation-led long-term growth. A major milestone…

Analysis

Diversified ambition: The IMF has forecasted a return to growth in 2025, with non- oil segments of the economy on the rise
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Kuwait’s ambition to diversify its oil-based economy away from hydrocarbons has been in place for more than two decades. Although the ambition predates the launch of New Kuwait 2035 in 2017, the long term development blueprint represents the most comprehensive and far-reaching attempt yet to move beyond oil and fast-track growth in the other areas of the economy. Although efforts are beginning to pay off, with progress in finance, logistics, ICT and tourism, the success of ongoing reforms will be crucial if the country is to fully realise the ambitions laid out in the plan. Modernisation Kuwait’s first moves towards diversification started…

Analysis

Encouraging results: Localisation policies across the GCC are critical in creating sustainable employment opportunities for nationals
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GCC countries have been actively pursuing workforce nationalisation policies to reduce their reliance on expatriate workers and create sustainable employment opportunities for their growing local populations. Proactive Measures In Qatar, the workforce nationalisation rate stood at 19% in 2022, with a goal to increase this to 20%, as per the Qatarisation Policy of 2013. The country is currently accelerating its nationalisation efforts, with the Cabinet approving a law in December 2023 aimed at enhancing Qatari employment in the private sector. The law aligns with Qatar National Vision 2030 and its focus on human capital development. The localisation…