Kuwait expects its economy to grow by 2.6% in 2025, driven by financial reforms, including a new corporate tax system and the anticipated approval of the Public Debt Law, according to Finance Minister Dr. Noura Al-Fassam.
Speaking at the World Government Summit, Al-Fassam outlined Kuwait’s strategy under Vision 2035, aimed at diversifying income sources, improving the investment climate, and achieving long-term fiscal sustainability. Key reforms include boosting non-oil revenues, enhancing public spending efficiency, and increasing financial transparency.
Kuwait’s new general budget includes more than 90 development projects to stimulate public-private partnerships and advance economic growth.
Major infrastructure investments, such as the Mubarak Al Kabeer Port, the new T2 airport terminal, and digital transformation initiatives, are central to the plan. Funding for these projects will come from a mix of public funds and sovereign debt instruments to ensure sustainable financing.
Al-Fassam highlighted Kuwait’s cautious public debt strategy, with debt levels currently at 3% of GDP, far below the 60% threshold set by international standards. She said Kuwait’s strong credit rating positions it well to access capital markets under favourable terms, allowing the government to issue debt in a measured manner that supports the domestic economy without overburdening the state budget.
