Kuwait has introduced a new public debt law, setting a borrowing ceiling of KWD 30 billion Kuwaiti ($97.4 billion) and permitting the issuance of financial instruments with maturities of up to 50 years, Reuters reported on Thursday.
The legislation aims to diversify funding sources and reduce reliance on oil revenues. Kuwait last accessed international debt markets in 2017 with an $8 billion bond issuance.
The law’s passage follows years of political deadlock and aligns with broader economic reforms under Emir Sheikh Meshal al-Ahmad al-Sabah.
Financial analysts view the law as a positive step toward fiscal sustainability, enabling Kuwait to finance infrastructure projects and manage budget deficits.
The government projects a budget deficit of KWD 5.6 billion ($18.33 billion) for the 2024-2025 fiscal year, with expenditures estimated at KWD 24.5 billion.
The new debt framework is expected to enhance Kuwait’s financial flexibility and support its Vision 2035 economic diversification strategy.
