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/

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.    

June 29      The Communications and Information Technology Regulatory Authority has announced the launch of advanced fifth-generation technology in Kuwait, marking a significant milestone in the nation’s digital transformation journey and laying the groundwork for future sixth-generation advancements.

June 13         Kuwait has introduced a major change to its labor market regulations by imposing a flat KD150 fee on all work permit transfers, ending all previous exemptions. The new rule, effective June 2025, applies to every sector and employer.

June 10        Kuwait’s Prime Minister chaired a meeting on the Northern Economic Zone, including Silk City, focusing on boosting private sector involvement with flexible laws and incentives, while ensuring full Kuwaiti sovereignty and an investor-friendly environment.

May 28        S&P Global affirmed Kuwait's long-term credit rating at “A+” with a stable outlook, forecasting the country's economy to grow 2% in 2025-2026. In its latest report, the US-based agency said that due low oil prices and large expenditure, Kuwait is forecast to run a high fiscal deficit in the upcoming two to three years.

May 5        In 2024, Kuwait's tourism revenue reached a historic high of 692.5 million Kuwaiti Dinars (approximately 2.3 billion USD), marking a 30% year-on-year increase. This highlights the effectiveness of the government's efforts to revitalize domestic tourism, improve infrastructure, enhance entertainment experiences, and provide visa facilitation measures.

April 15, Egypt and Kuwait have agreed to advance bilateral economic, investment, and trade relations in a joint statement. The Kuwaiti side expressed its intention to invest in the Egyptian economy and benefit from numerous investment opportunities in Egypt in the fields of energy, agriculture, industry, information technology, real estate development, banking, and the pharmaceutical industry. 

April 04, The 2024 statistical report from Kuwait's Public Authority for Civil Information highlights five key regions-salmiya, Farwaniya, Jleeb Al-shuyoukh, Hawaland Mahboula-as the most densely populated in the country. Given their high population concentrations, these areas demand strategic infrastructure and public service improvements. 

March 25         Kuwait's passenger vehicle imports fell by 7.7%, or KD 110.9 million, to KD 1.333 billion in 2024, down from KD 1.44 billion in 2023. Meanwhile, Kuwait’s imports of machinery, appliances, and electrical equipment fell by KD 171.3 million, or 8%, to KD 1.955 billion in 2024, compared to KD 1.99 billion in the previous year.

March 18         Kuwait and China signed a framework agreement which included a commitment to cooperate in renewable energy and solar plants technology. The agreement outlines a plan, overseen by the Chinese side, for the third and fourth zones of the Al-Shagaya and Al-Abdiliya solar plants projects. 

March 12         Kuwait is implementing tourist "transit" visas for those entering the country for a specific number of days before continuing their travels, following the success of the "Khaleeji Zain 26" Championship and its positive impact on tourism and the national economy. 

March 9         Fitch Ratings has reaffirmed Kuwait's Long-Term Foreign-Currency Issuer Default Rating at AA-, with a stable outlook due to the country’s strong fiscal position and external financial consistency.

February 20, Director of the Renewable Energy Department confirmed that Kuwait is on track to produce 30% of renewable energy by 2030. This ambitious goal, which exceeds the targets set by some other countries, highlights Kuwait's leadership and commitment in using renewable energy.  

February 16, Kuwait's tourism project will attract 100,000 foreign visitors annually. With an estimated cost of KD 12 million, the project is set for completion by 2028, currently in its preparatory phase, and expected to generate about 1,830 job opportunities for Kuwaiti professionals upon operation.     

February 16, Kuwait has introduced sweeping reforms to its property ownership laws, granting expatriates new rights to own real estate under specific conditions. 

February 15, Kuwait is rapidly emerging as a regional powerhouse in the data center and technology sectors. The market for data centers in Kuwait is expected to grow substantially, with investment reaching an impressive $340 million by 2029.

January 30       Consumer spending in Kuwait hit record levels in 2024, underpinned by a growing preference for card payments and a thriving ecommerce industry. Figures from the Central Bank of Kuwait for 2024 showed spending reached KD47.81 billion ($155.7 billion), a rise of 4.4 % from the previous year.     

January 17        Kuwait was ranked as the second-lowest Gulf country in terms of the overall cost of living. The ranking placed Kuwait in 12th place in the Arab world and 80th globally out of 139 countries included in the survey, indicating a relatively lower cost of living in Kuwait.

January 12       The Kuwaiti Cabinet approved a draft law imposing a 15% tax on multinational enterprises operating in more than one country or jurisdiction. The law, which came into effect in January 2025, is aimed at diversifying Kuwait's income sources, reducing reliance on oi, building a resilient economy, and addressing future challenges.

December 30, Kuwait will impose a minimum top-up tax of 15% on multinational enterprises operating in the country, starting in January. The finance ministry said the implementation of the tax comes under its efforts to diversify the Gulf country's sources of income.

December 18, The number of people using Kuwait International Airport increased by a third between 2014 and 2023, new data from Kuwait's General Administration of Statistics shows. In 2023 15.5 million passengers came through the airport, up from 10.1 million nine years ago.

December 16, Companies from five countries accounted for 62.6% of foreign direct investment in Kuwait, which totaled KWD 1.74 billion by the end of 2024. The Netherlands came first, accounting for 27.95% of total investments. Chinese companies followed in second place, accounting for 12.5% of total investments with total investments amounting to about KWD 147.4 million.   

December 10, The Kuwaiti economy is expected to remain in recession through 2024, but is projected to recover over the medium term, the International Monetary Fund said. Real GDP will shrink by 2.8% in 2024, primarily due to additional Opec+ production cuts. However, economic activity will rebound in 2025, with a projected growth of 2.6 %, as production curbs begin to unwind.   

November 13         Kuwait ranks sixth in the Gulf and 100th globally among the world’s most influential financial centers for 2025. In the Arab world, Dubai ranked first and tenth globally, followed by Abu Dhabi in second place and 20th globally, then Doha in third at 68th globally, Riyadh in fourth at 77th globally. 

November 13        The country's e-commerce volume exceeded 500 million dinars, with a growth rate of 11.33% from 2018 to 2023, and is expected to rise to 12.57% annually from 2024 to 2028. 

November 9        Kuwait has announced new rules for real estate ownership. Citizens of the UAE, Saudi Arabia, Oman, Bahrain and Qatar are able to purchase property in Kuwait without any restrictions, recognizing the close bond between GCC countries. 

November 5         S&P Global revealed that the non-oil sector in Kuwait regained momentum, with the PMI rising to 52.7 in October, up from 50.3 in September to reach its highest level in seven months.