Trade & Investment
From The Report: Kuwait 2025
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Although Kuwait’s economy remains reliant on the hydrocarbons sector, diversification through trade and investment is a conduit for growth in the near-term. The government is pursuing a diversification agenda under its New Kuwait 2035 vision, which aims to bolster non-oil growth. This transition presents an opportunity to reinvigorate reform efforts in areas such as privatisation, public-private partnerships (PPPs) and foreign investment. Strengthening the business environment remains a priority, with renewed political alignment serving as a catalyst for accelerating diversification and boosting investor confidence. Recent amendments to foreign investment legislation, the expansion of PPP models and the planned rollout of special economic zones indicate a broadening of opportunities for private capital. The Kuwait Investment Authority continues to underpin fiscal resilience and global reach through its sovereign wealth holdings. Steady progress in investment facilitation, digitalisation of procedures and the development of new investment vehicles suggests that gains are likely across the board.

This chapter contains interviews with Sheikh Meshaal Jaber Al Sabah, Director General, Kuwait Direct Investment Promotion Authority; and Abdullah AlTerkait, Chairman, Al Safat Investment Company.

Articles from this Chapter

Overview

Broad horizons: Policy innovation, digitalisation and sector expansion drive Kuwait’s diversification agenda forwards
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Although Kuwait’s economy remains largely reliant on the hydrocarbons sector, diversification through trade and investment is a key conduit for growth in the near-term. In recent years, the government has pursued an ambitious diversification agenda under its New Kuwait 2035 vision, which aims to bolster non-oil growth in infrastructure, logistics, financial services and renewable energy. This transition presents an opportunity to reinvigorate reform efforts in areas such as privatisation, public-private partnerships (PPPs) and foreign investment. Strengthening the business environment remains a strategic priority, with renewed political alignment…

Interview

Channelling investment: Sheikh Meshaal Jaber Al Sabah, Director General, Kuwait Direct Investment Promotion Authority, on strengthening resilience by building a broader base of non-oil revenue sources
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Interview: Sheikh Meshaal Jaber Al Sabah, Director General, Kuwait Direct Investment Promotion Authority, on strengthening resilience by building a broader base of non-oil revenue sources How are trade and investment playing a role in accelerating Kuwait’s economic diversification? SHEIKH MESHAAL JABER AL SABAH: Trade and investment are central to Kuwait’s economic transition. Efforts to modernise regulation and introduce new public-private partnerships models are creating a more transparent…

Analysis

Regulatory updates: GCC member countries are increasingly administering forms of taxation to diversify revenue streams
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Since gaining independence at various points during the 20th century, the GCC countries – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE – have maintained a fiscal model built on oil revenue and a low- to no-tax environment. Historically, hydrocarbons revenue allowed GCC governments to fund public spending without excessive taxation, relying instead on oil and gas wealth to fund public services and development. This resource-driven model supported social contracts based on government-provided benefits rather than taxation, promoting economic stability, political loyalty, consumer spending and foreign direct investment, while subsidising…

Interview

Growth engines: Abdullah AlTerkait, Chairman, Al Safat Investment Company, on strengthening market liquidity and investor confidence
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Interview: Abdullah AlTerkait, Chairman, Al Safat Investment Company, on strengthening market liquidity and investor confidence Where do you see the most promising investment opportunities emerging across non-oil sectors? ABDULLAH ALTERKAIT: Regulatory innovation, such as Kuwait’s financial technology (fintech) sandbox, has accelerated digital finance solutions and enabled fintechs to scale and access capital markets. Participation in global artificial intelligence and cloud ventures underscores…

Analysis

Making a mark: Emerging markets are seeing a major shift towards sustainability initiatives, reshaping the global investment landscape
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Impact investment – designed to generate tangible social and environmental benefits alongside financial returns – presents promising risk-adjusted prospects. This type of investment not only provides value for investors, but can also greatly advance the UN 2030 Sustainable Development Goals. According to the Global Impact Investing Network (GIIN), the impact investing market has experienced substantial growth, with an estimated worth of $1.6trn in 2024. This marks a more than two-fold increase from its $502bn valuation at the end of 2018. In GIIN’s 2024 survey, impact investors demonstrated strong performance, with 86% indicating that they…