The Government of Kuwait launched an ambitious development plan in 2018 known as ‘Vision 2035’ which aims to transform country into an international trade hub and diversify its oil-centric economy. The goal is to increase private sector participation in Kuwait’s economy by creating a more investor-friendly environment as well as to invest in the nation’s economic infrastructure via the construction of new airports, ports, roads, industrial areas, residential developments, hospitals, a railroad, and a metro rail.  The Northern Gateway initiative, which encompasses the Five Islands or New Kuwait projects, envisions public and private sector investment in the establishment of an international economic zone that could exceed USD 400 billion over several decades. With one of the world’s largest sovereign funds with more than USD 670 billion in assets as of March 2021, minimal taxes, and low-cost labor, Kuwait provides a great opportunity for investment. However, bureaucratic red tape and the frequent changing of the government has stalled the progress of many initiatives.

Several public-private partnerships are in the pipeline in the power, water management, and renewable energy sectors. Two billion-dollar hospitals were completed in the last two years. These institutions need foreign investment to operate and train hospital staff, as well as to deliver world-class equipment and IT infrastructure.

With a view to attracting foreign investment, the government passed a foreign direct investment law in 2013 that permits up to 100 percent foreign ownership of a business if approved by the Kuwait Direct Investment Promotion Authority (KDIPA).  All other foreign businesses must abide by existing law that mandates that Kuwaitis, or other GCC nationals, own at least 51 percent of any enterprise. In approving applications from foreign investors seeking 100 percent ownership, KDIPA prioritizes local job creation, the provision of training and education to Kuwaiti citizens, technology transfer, diversification of national income sources, contribution to exports, support for small- and medium-sized enterprises, and the utilization of Kuwaiti products and services.  KDIPA has sponsored 37 foreign firms, including six U.S. companies. KDIPA also provides certain investment incentives like tax benefits, customs duties relief, and permission to recruit foreign employees.

Kuwait has also made great strides in protecting intellectual property. Kuwait’s 2019 Copyright Law addressed serious concerns about Kuwait’s intellectual property protection regime. Kuwait has continued to increase enforcement actions in 2021.

Kuwait is a country of 1.4 million citizens and 3.3 million expatriates.  It possesses six percent of the world’s proven oil reserves and is a major oil exporter.  The economy is heavily dependent upon oil production and related industries, which are almost wholly owned and operated by the government. The energy sector accounts for more than half of GDP and close to 90 percent of government revenue. The fall in oil prices after OPEC+ failed to agree on production targets in 2019 and the reduction in global demand for oil upon the onset of the COVID-19 pandemic in 2020 greatly exacerbated Kuwait’s fiscal deficit. However, the rapid increases in the price of oil since spring 2021 has allowed Kuwait to significantly reduce its deficit from KD 5.4 billion (USD 17.7 billion) in March 2021 to KD 406.4 million (USD 1.3 billion ) as of January 2022. However, reduced stress on the country’s finances has dampened support for economic and business reforms that Kuwait needs to become the investment hub envisioned in New Kuwait Vision 2035. Kuwait’s ability to implement these changes will determine whether the current financial windfall will result in an economically sustainable future.

As it develops the private sector to reduce the country’s dependence on oil, the government faces two central challenges. It must improve the business climate to enable the private sector and must prepare its citizens to work in the private sector.

More than 85 percent of all Kuwaitis with jobs work in the public sector, where they receive generous salaries and benefits. This makes public sector jobs largely preferable to careers in the private sector. Convincing young Kuwaitis that their future is in the private sector will require changing social attitudes and raising the level of local education so that Kuwaiti businesses can compete internationally in sectors other than fossil fuels.

For more information please refer to https://www.state.gov/reports/2022-investment-climate-statements/kuwait/

March 30，Kuwait-listed Heavy Engineering Industries and Shipbuilding (HEISCO) has received board approval to acquire a 50% stake in Pure Works & Services Company for KD 7.3 million (USD 24 million). The acquisition is expected to broaden HEISCO's service capabilities and strengthen its foothold in the utilities and infrastructure sectors, complementing its existing heavy engineering and shipbuilding operations. No completion timeline has been disclosed.

March 26，Kuwait announced the listing of Trolley General Trading Company on the “Premier” Market, with trading in the company’s shares commencing on Wednesday, March 25, 2026. 

March 26 ，Kuwait Heavy Engineering Industries & Shipbuilding Company (HEISCO) has announced that it has signed the contract with the Ministry of Electricity & water & Renewable & Energy for a significant power and fuel infrastructure project. The total contract value is KD 57.2 million, equivalent to approximately USD 186.12 million. Under the scope of work, HEISCO will be responsible for the supply, construction, commissioning, and ongoing maintenance of power transmission lines feeding the AL-Khairan Power Plant, as well as the development of critical fuel receiving infrastructure supporting operations at the AL-Zour Power Plant. 

March 25，Boursa Kuwait closed Wednesday’s session on a positive note, with the general market index edging up 14.01 points, or 0.17%, to 8,448.84 points. A total of 202,5 million shares changed hands in 15,399 cash transactions, with a trading value of KD 58.31 million (around USD 178.4 million). 

March 17，Kuwait Real Estate Company (AQARAT) has signed a banking facilities agreement valued at 30 million Kuwaiti dinars ($97.81 million) to support its ongoing real estate and operational activities.

February 19, As part of ongoing government efforts to regulate Kuwait’s labor market and curb illegal residency practices, authorities are moving toward introducing a new residency framework known as free residency, allowing expatriates to work independently without a traditional sponsor under a regulated legal system. 

February 17, A Harvard University study ranked Kuwait 30th out of 145 countries in GDP per capita, recording $31,971 nominally and $51,322 adjusted for purchasing power parity under 2024 standards. 

February 13, Kuwait expects its non-oil revenue to climb to an all-time high of more than $11 billion during its next fiscal year as it pushes ahead with plans to increase taxes and fees on government services. 

February 12, Kuwait is experiencing a remarkable acceleration in the adoption of digital payment solutions, with the use of cash in daily transactions declining to 30 percent, compared with 40 percent last year – the largest drop recorded among all GCC markets.

February 12, Moody’s Investors Service has affirmed a stable outlook for Kuwait’s banking sector, citing expectations that the country’s non-oil economy will expand in 2026 at a pace similar to 2025. The assessment reflects continued government spending on strategic infrastructure initiatives designed to diversify the economy and sustain business activity beyond the oil sector.

January 24, Kuwait’s Minister of Electricity, Water and Renewable Energy, Finance and Acting Minister of State for Economic Affairs and Investment stated the country is fast transforming to build a more attractive environment for foreign investment and private sector growth, adding the government is launching 12 key mega-projects with the private sector – six now in rollout and six more set to launch soon.

January 24, Kuwait City ranked second among the most expensive Arab cities for purchasing residential apartments in 2026. The report showed that the average price per square meter for apartments in the city center reached KD1,633, reflecting a decrease of 10.9 percent compared to 2025, when prices stood at approximately KD1,833 per square meter. 

January 18, GlobalData, the London-based analytics firm, has projected that Kuwait’s construction sector will record an average annual growth rate of 4.9% between 2026 and 2029, supported by sustained government investment in renewable energy initiatives and transport infrastructure projects.  

January 15, Kuwait's Public Authority for Manpower has introduced a new “multiple-trip exit permit service” for expatriate workers, in a move aimed at simplifying procedures, improving efficiency, and reducing administrative burdens for both employers and employees.

January 5, While 2025 recorded only marginal growth in the number of Kuwaiti travelers compared to 2024, the year marked a decisive shift in travel preferences, destination choices, and booking behavior, with Europe rising to the forefront and new destinations gaining traction. Kuwait International Airport handled 14.93 million passengers in 2025, reflecting sustained travel momentum. 7.295 million arrivals were recorded, with a monthly average of 628,600. 

December 23, Kuwait and China formalized a new agreement, building on their cooperation and which aims to complete the development of a new port in northern Kuwait. Known as the Mina Mubarak Al-Kabeer port, it is a key part of Kuwait’s Vision 2035 project and China’s Belt and Road Initiative.

December 23, Kuwait has enacted a comprehensive reform of its immigration and residency framework, introducing long-term residency permits of up to 15 years for eligible foreign nationals while simultaneously increasing iqama, visa, and health insurance fees across most categories.

December 18, The International Monetary Fund (IMF) said that Kuwait’s economy is expected to grow 2.6% this year and 3.8% next year, before stabilizing at 2% in the medium term. 

December 13, In 2025, Kuwait significantly enhanced its regional and international standing by securing extensive multi-sector partnerships and agreements with GCC members, Arab nations, global countries, and international organizations, all in line with its objectives of sustainable development, economic diversification, and institutional cooperation. These collaborations feature key initiatives such as a renewable energy framework with China, AI and cloud computing cooperation with Microsoft. 

November 22, Standard & Poor's Global Ratings said it raised its long- and short-term sovereign credit ratings on Kuwait to 'AA-/A-1+' from 'A+/A-1', with the outlook as stable. The S&P's report said the stable outlook reflects S&P's expectation that Kuwait's public and external balance sheets will remain very strong over forecast horizon, backed by a significant stock of government financial assets.

November 2, Kuwait has officially activated its Visit Kuwait online platform, allowing travelers to apply for entry visas digitally. The platform offers four types of visas — tourist, family, business, and official — streamlining and accelerating application procedures to make entry easier for a wide range of visitors.

October 26, Kuwait is ushering in a new era of openness with the launch of its Kuwait Visa and upcoming Visit Kuwait platforms, digital gateways designed to simplify travel, boost tourism, attract investment, and strengthen the country’s global competitiveness.

October 24, Kuwait witnessed remarkable import activity during the second quarter of 2025, with the total value of imports rising to approximately 3.26 billion dinars. The surge reflected a broad diversity of goods, spanning from vehicles and gold to medical devices and vaccines, underscoring the vitality of the local market and an expanding appetite for consumption across multiple sectors.

October 12, The official inauguration ceremony for the Chinese Cultural Center in Kuwait was held, marking the full operation of the Gulf region's first Chinese cultural center.

October 4, According to an IMF report, Kuwait achieved real economic growth of 1 percent in the first quarter of 2025, driven by higher growth in the non-oil sector. The report emphasized that Kuwait’s increased share of oil production remains the main driver of growth, while noting that the economy continues to be heavily influenced by oil market fluctuations.

September 27, Kuwait is positioning itself at the heart of the global tourism movement in2025 through qualitative achievements and innovative national projects, aiming to solidify its status as a leading cultural and family destination amid a growing global and Gulf tourism boom.

September 25, Kuwait’s economy is expected to expand by 2.6% this year as the recent unwinding of OPEC+ production cuts increases oil sector output by 2.4% amid strong non-oil growth of 2.7%, driven by stronger private domestic demand.

September 16, Kuwait's government invited local and international companies to take the first step in bidding for contracts as part of its plans to develop three new cities to help tackle a shortage of housing in the country. The project to build the new cities, which will cover more than 300 hectares (740 acres) in total, is the first to be implemented under a new real estate development law that opens Kuwait's housing sector to private investment. 

September 7, Fitch Ratings has affirmed Kuwait’s long-term foreign-currency issuer default rating at AA- with a stable outlook, citing the country’s strong fiscal and external balance sheets. Yet Fitch warned that reliance on hydrocarbons, an oversized public sector, and governance scores that lag peers remain key risks.

August 21, Kuwait is rolling out one of its most ambitious development drives to date, with plans to attract up to KD10bn ($32.6bn) in private and foreign investment, generate annual revenues of KD1bn ($3.26bn) by 2030, and create more than 50,000 new jobs. The programme is anchored in the New Kuwait 2035 Vision and combines sweeping reforms, strategic partnerships, and mega projects in energy, transport, infrastructure, smart cities, and industrial zones.

August 14, Kuwait's Minister of Public Works chaired a meeting of the Ministerial Committee to follow up on the implementation of agreements and MOU with China. The meeting reviewed the progress of 22 development projects, focusing on strategic areas such as the Mubarak Al - Kabeer Port project, electric power and renewable energy development, low - carbon waste recycling systems, housing projects, wastewater treatment infrastructure, and the development of free and economic zones.

August 12, The Kuwaiti Government Information Center has unveiled a new, streamlined tourist visa system with four distinct categories designed to accommodate travelers of varying nationalities and purposes. Single-entry visas permit stays of 30, 60, or 90 days, while multiple-entry visas, valid for 3 months, 6 months, or 1 year, allow for 30-day stays per entry.   

August 10,  Kuwait officially starts allowing residents of Gulf Cooperation Council (GCC) countries to obtain a tourist visa on arrival, announced First Deputy Prime Minister and Interior Minister of Kuwait.

July 27, Kuwait’s population has officially crossed five million for the first time, according to mid-2025 figures released by the Public Authority for Civil Information (PACI). The country’s total population now stands at 5,098,000, with expatriates making up 70 per cent (3,547,000) and Kuwaiti citizens accounting for 30 per cent (1,550,000).

July 24, Kuwait ranked second in the Gulf region for the lowest overall cost of living in the first half of 2025, just behind Oman. It ranked 12th among Arab countries and 247th globally out of 404 countries in the Numbeo Global Cost of Living Index.

July 4, Kuwait has unveiled a new electronic visa system designed to streamline entry procedures for travellers and residents, in a major step toward modernising the country’s digital infrastructure and enhancing its appeal as a regional hub for tourism, investment, and international cooperation.

July 3, Kuwait has unveiled executive regulations regarding its tax on multinational entities, anticipating that the levy will generate KWD250 million ($819.2 million) in annual revenues. The country’s Ministry of Finance stated that the new regulations outline the introduction of a supplementary domestic minimum tax (DMTT) under the multinational entities (MNEs) group tax.