Kuwait steps up reforms, prods global allies for robust economy

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KUWAIT CITY - The State of Kuwait, under His Highness the Amir’s directives, is accelerating reforms to achieve economic development and financial sustainability through building strategic partnerships with major countries.

His Highness the Amir Sheikh Mishal Al-Ahmad Al-Jaber Al- Sabah has repeatedly emphasized the importance of ensuring the sustainability of the national economy, a guideline for every government to make major transformations in reforms, economy, production and human resources.

The seven agreements signed between Kuwait and the People’s Republic of China, in September 2023 constituted one of the most important milestones driving development efforts in Kuwait. Kuwait is working to diligently implement the recommendations that were agreed upon during the visit of His Highness the Amir to China last year.

The Kuwaiti government recently intensified discussions with the Chinese side, represented by the Commissioner-General of the representative office for the Middle East and Africa, to overcome obstacles and support efforts to put the agreements into effect as soon as possible.

Kuwait Investment Authority (KIA), meanwhile, is moving to seize investment opportunities and enhance its presence in promising markets, especially in Saudi Arabia, as the authority decided on June 25, 2024, to open an office in the Kingdom of Saudi Arabia to enhance cooperation with Saudi and international companies in joint projects.

Al-Zour Refinery project, which was inaugurated by His Highness the Amir last May, added a new strategic dimension to Kuwait to advance development and strengthen the country’s leading position.

The government is also planning to launch major policies and create a solid legislative structure that keeps pace with the process of economic and financial reform and creates an attractive environment for investments.

To integrate a vision in this regard, The Council of Ministers assigned the Ministry of Finance to draw up policies about financial and economic reforms in a way that ensures financial sustainability as well as maximizing non-oil revenues. The Council of Ministers also formed a committee to prepare priorities the main theme of for its action plan and a specific execution timetable.

The committee is headed by the Minister of Finance with Minister of Public Works, the Minister of Commerce and Industry, the Minister of Electricity, Water and Renewable Energy and members. On July 3, 2024, the Minister of Finance and Minister of State for Economic Affairs and Investments Dr. Anwar Al-Mudhaf, affirmed that the pillars of economic reforms have the support of His Highness the Amir. During the first general budget forum held by the Ministry of Finance of July 14th, 2024, the Ministry confirmed that Kuwait is embarking on comprehensive financial reform to address areas of waste and develop revenues for the state’s financial sustainability.

The expected reforms in this aspect include improving government procurement contracts, repricing public services, and rents of state-owned lands, in addition to developing the financial performance of government bodies.