KUWAIT CITY, Aug 21: Integrated government action, linking economic diplomacy with strategic partners and supported by a comprehensive system of internal reforms, is driving a significant transformation in major project development in Kuwait.

This transformation reflects a clear vision to enhance performance efficiency, strengthen transparency, and accelerate implementation. It comes within the framework of strategic plans aimed at diversifying income sources, developing infrastructure, and achieving sustainable development in line with the New Kuwait 2035 Vision.

Government measures include recent legislative and regulatory reforms, the expansion of strategic development partnerships, efforts to speed up major projects, and the reinforcement of positive economic indicators.

As part of this momentum, the Ministerial Committee for Monitoring Agreements with China held 22 meetings, identifying four main tracks to advance economic development. These cover accelerating coordination and consultations with China, expanding technical visits, resolving obstacles facing projects, setting plans and priorities, and supporting ministries and agencies responsible for implementing memoranda of understanding (MoUs).

Notable progress has been made in the Mubarak Al-Kabeer Port project under the MoU with China, culminating in the signing of the execution contract last March.

In the field of environmental infrastructure, the government is reviewing a detailed report prepared by a Chinese delegation outlining an action plan for bilateral cooperation in land reclamation, ecosystem rehabilitation, afforestation, environmental protection, and combating sand encroachment.

His Highness the Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah stressed that positive indicators in economic growth and rising foreign investment confirm the government’s steady progress and the committee’s success in achieving the objectives of the comprehensive development plan, in line with the vision of His Highness the Amir Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah.

Kuwait has also strengthened its international partnerships, elevating its historic ties with Japan to a comprehensive strategic partnership aimed at deepening economic and development cooperation. The partnership covers trade, investment, renewable energy, and petrochemicals.

One of the key projects is the second and third phases of the Al-Zour North Power Plant, among Kuwait’s largest electricity projects. It is designed to meet growing demand for power and water while providing infrastructure for development initiatives. The project encourages private sector participation, drawing on its expertise to reduce costs, accelerate completion, and optimize the use of natural resources.

To ensure effective monitoring, the government is cataloguing all projects and contracts across ministries and agencies, creating detailed lists of ongoing and future projects. This database will help assess performance, enhance coordination, and avoid overlapping responsibilities or duplication.

The government follows a unified methodology for integrating projects and initiatives into strategic plans, with phased goals, timelines, measurable key performance indicators, and designated coordinating entities.

New financing initiatives are also being introduced to support major projects in energy, transport, infrastructure, smart cities, and industrial zones. Targets include reducing the burden on the public budget by 30 percent, attracting up to KD 10 billion in private and foreign investment, generating KD 1 billion in annual revenues by 2030, and creating more than 50,000 jobs.

Recent reforms include a real estate brokerage system, a smart licensing project, amendments to the Companies Law, a taxation framework for multinational groups, and the launch of the Real Estate Developer System. In addition, the second part of the third phase of the Capital Market Development Program has been launched. The program, one of the Capital Markets Authority’s key strategic projects, is designed to prepare Kuwait for an upgrade to advanced emerging market status and to boost investor confidence.

International institutions have reflected these efforts in their outlooks. The World Bank forecasts that Kuwait’s economy will grow by 2.2 percent in 2025, supported by the easing of OPEC+ production caps, expansion of non-oil sectors, credit growth, and major projects. Growth is expected to remain stable at 2.7 percent in 2026–27. Long-term prospects, the Bank said, hinge on the successful implementation of structural reforms and diversification.

S&P Global Ratings also projected continued economic growth, while EFG Hermes noted that decision-making has improved, with greater focus on government projects and legislation. It forecasts stronger credit growth in the banking sector starting in 2026.

Kuwait’s 2025/26 development plan, approved in March, includes 124 construction projects: 69 under ministries and government departments, 21 for affiliated entities, and 34 for independent institutions.

In 2023, Kuwait signed several MoUs with China covering the Mubarak Al-Kabeer Port project, as well as cooperation in electricity, housing, wastewater treatment, free zones, economic zones, renewable energy, and low-carbon waste recycling.