Political Agenda for Investment in Kuwait: A Political Outlook Aimed at a Compeititive Market Economy and a Strengthened Regional Standing
Kuwait Steps Forward in Gulf's Economic Transformation
Kuwait is making significant strides in the Gulf's economic transformation, propelled by a bold national vision, resolute political will, and growing institutional capacity. The country is playing a pivotal role in the region's shift towards economic diversification, moving away from oil dependence.
Within the Gulf Cooperation Council (GCC), Kuwait is among the countries leading the expansion of non-oil sectors such as manufacturing, construction, and services. This aligns with the broader GCC goals of economic reform and diversification. By 2025, GCC economies, including Kuwait, are expected to grow robustly, driven by increased oil production and accelerated non-oil activities.
Kuwait's financial market serves as a clear demonstration of this transformative role. Boursa Kuwait, the country's stock exchange, reported a remarkable 61.12% surge in net profit in the first half of 2025, along with a 90.39% increase in traded value compared to the same period the previous year. This growth reflects Kuwait's efforts to modernize its market infrastructure, diversify investment instruments, and enhance its appeal to both local and international investors.
Although specific details about Kuwait's participation in the Future Investment Initiative (FII) 2025 Forum are not explicitly cited in the sources, the forum is a key platform for Gulf countries, including Kuwait, to showcase their investment opportunities, discuss regional economic strategies, and attract global capital that supports diversification ambitions. Kuwait's active financial sector development and its alignment with GCC-wide reform plans suggest that its participation in such forums is strategic to fostering partnerships, drawing international investments, and promoting sustainable economic growth.
The State of Kuwait has received an invitation from Prince Mohammed bin Salman, Crown Prince of Saudi Arabia, to attend the ninth edition of the Future Investment Initiative 2025 Forum in Riyadh. This invitation reflects Kuwait's prestigious position in the new Gulf system, moving towards a post-rentier economy.
Kuwait represents a complementary force, capable of presenting a rational development model based on governance, measured openness, and popular participation in shaping public policies. The country plays a pivotal role in extending strategic economic understandings that seek to build a new balance based on diversity and integration within the Gulf system.
Kuwait has received foreign direct investment exceeding KD200 million from 34 countries. Major projects worth more than $26 billion have been launched, focusing on vital sectors such as water, energy, and smart infrastructure. The Kuwaiti economy is not merely a goal, but a national imperative that the state is determined to achieve.
Economic projections for 2025 indicate a GDP growth of 3%, driven by a rise in the oil sector (3.4%) and a significant improvement in the performance of non-oil sectors (2.6%). New laws have been enacted to encourage investment, and independent governance systems have been launched for special economic zones to improve administrative performance and enhance investment attractiveness.
The Kuwaiti tourism and cultural landscape is witnessing a deliberate qualitative shift, with initiatives to rehabilitate museums, expand hotel infrastructure, and organise artistic events. The upcoming participation in the Riyadh Investment Forum highlights Kuwait's firm orientation towards deeper strategic partnerships with economic decision-making centres.
Kuwait is pursuing a balanced foreign economic policy, expanding strategic partnerships with countries like China, South Korea, and the Sultanate of Oman, and attracting global companies such as Google Cloud and Joseph Gallagher. The country's increasing engagement in Gulf forums and initiatives expresses a strategic conviction that building a new Gulf economic balance requires qualitative contributions from each country.
The Kuwaiti tourism sector is projected to contribute more than $1 billion to the GDP by 2029. Kuwait has implemented Kuwait Vision 2035, a comprehensive development project based on seven strategic pillars, aiming to rebuild the national economy on foundations of diversity and sustainability. This vision underscores Kuwait's commitment to a prosperous and resilient future for the country.
- Among the GCC countries, Kuwait's financial market, notably Boursa Kuwait, is making noteworthy strides in diversifying investment instruments, attracting both local and international capital, and fostering sustainable economic growth – key aspects of business and finance.
- As Kuwait moves towards a post-rentier economy, politics play a significant role in its efforts to attract foreign direct investment exceeding KD200 million from 34 countries, launch major projects worth more than $26 billion, and build strategic partnerships with global economies – these being integral parts of general-news and politics.