Kuwait and Saudi Arabia have agreed to form a joint venture to encourage investment in projects to develop the infrastructure of Khafji city. which is located in the oil-rich Neutral Zone shared by the two Gulf neighbours.

The decision has been taken at a recent meeting by the Saudi-Kuwait Investment Coordination Committee, which was created by the Saudi-Kuwait Council, the Kuwaiti Arabic language daily Al-Qabas said on Monday, quoting committee sources.

“The two countries agreed to form an investment alliance to encourage investors and developers from both countries to invest in projects to develop the transport infrastructure in Khafji city on a BOT (build-operate-transfer) basis,” the paper said.

In December 2022, Saudi Arabia and Kuwait, among the world’s largest oil producers, signed a memorandum of understanding to jointly develop Durra gas field, which is located in the 5,700-sq-km Neutral Zone.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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