The Kingdom of Saudi Arabia and Kuwait have announced the launch of a joint private sector-led business body, recognising the deepening FDI and bilateral trade ties between the Kingdom and Kuwait.
Kuwaiti Incentives
Trade between the two GCC states remains high yet FDI is relatively low.
The announcement is read as a bridge to address waning trade ties between the neighbouring GCC economies, as Kuwait seeks to increase it’s FDI whilst addressing its trade deficit with the Kingdom.
KSA, the largest Arab economy, has maintained a massive surplus in trade exchanges with its neighbour. Exports stood at $2.1B during the first 11 months of 2025 yet Kuwait’s exports to Saudi Arabia stood at $400M in the same period.
“The formation of the Saudi-Kuwaiti business council represents a pivotal moment in the economic relations between the two countries,” said the council’s chairman Salman Al-Aqeel, who heads the Saudi Hafar Al-Batin chamber.
Inbound FDI inflows into Kuwait also lag behind the other five regional economies in the Gulf.
Saudi Incentives
The Kingdom is also seeking greater FDI in particular sectors, namely shared oil reserves and the evolving mining sector.
KSA and Kuwait lead joint ventures in shared oil reserves between Saudi Aramco and the Kuwait Gulf Oil Company.
National manufacturers in the two states have also discussed Kuwaiti mineral exploration and processing in KSA’s emerging mining zones, namely Makkah, Aseer, and Tabuk.
FDI Inflows, GCC Competition
Analysts also recognise the timing of the announcement as the UAE hosted Kuwaiti figures last month in Abu Dhabi. The visit arrived at a distant time between Abu Dhabi and Riyadh following geopolitical shifts in Yemen.
Mutual investments between the Kuwait and the Emirates reached $10B in 2024, forecast to succeed $35B by 2030.
GCC FDI inflows remains substantial, with the UAE leading in 2026, yet KSA is forecast to outpace the volume of FDI inflows by 2027.
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