27/10/2026
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27/10/2026
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KUWAIT CITY, Oct 27: Oil and economic expert Hajjaj Bukhadhour said the significant rise in foreign direct investment (FDI) marks an important milestone for Kuwait’s economy. The value of these investments exceeded USD 6 billion in 2025, with an additional inflow of approximately USD 16 billion expected in 2026, driven by the “Shaheen” project, an initiative signed between the Kuwait Petroleum Corporation (KPC) and several international companies.
In a press statement, Bukhadhour explained that these multi-billion-dollar inflows carry significant economic, political, and social implications. Their true significance lies not merely in the volume of capital but also in its nature, developmental impact, sustainability within the broader economic framework, and resilience in the face of current geopolitical and economic challenges affecting the region and the world. He further stressed the importance of directing these funds towards vital, value-added sectors that boost productivity and generate tangible economic activity. Bukhadhour identified four key dimensions behind the rise in foreign
■ The economic dimension strengthens investor confidence, boosts employment and production, and facilitates the transfer of modern technology, provided that speculative activities that inflate asset prices without creating real wealth are clearly distinguished from genuine productive investments.
■ The political dimension reflects confidence in institutional stability, the protection of rights, and the availability of adaptable regulatory frameworks.
■ The social dimension is reflected in rising wages and the expansion of the middle class.
■ The strategic dimension supports the diversification of Kuwait’s competitive advantages in global markets.
Bukhadhour stressed that investment is not an end in itself but an effective tool for building economic strength and improving societal well-being. He noted that while the volume of funds measures capital inflows, the real benefits to the state and society are determined by productivity levels, value added, and the equitable distribution of returns. These factors have a direct and tangible impact on citizens’ living standards while fostering an environment that encourages innovation and entrepreneurship across targeted economic sectors and activities.
An informed source said the significant increase in investment inflows into Kuwait’s local market over the past two years reflects the success of recent government measures to modernize the legislative framework and remove bureaucratic obstacles facing international investors. He attributed this progress to ongoing coordination between the Kuwait Direct Investment Promotion Authority (KDIPA) and relevant entities to develop a comprehensive package of financial, logistical, and procedural incentives to facilitate the smooth flow of capital.
The source explained that the focus in the coming phase will increasingly shift towards renewable energy, infrastructure, digital services, and advanced industries. These are sectors capable of positioning Kuwait as an attractive financial and commercial hub in the region. These strategic partnerships will help integrate local small and medium-sized enterprises (SMEs) into global supply chains, improve overall market efficiency, establish a solid foundation for long-term growth, and promote the developmental stability the country seeks to achieve.
Furthermore, these partnerships will help build strong international alliances, create genuine employment opportunities for Kuwaiti youth, and support the objectives of the New Kuwait 2035 vision. This vision prioritizes diversifying income sources as a core developmental and strategic goal, aiming to build a sustainable economy that is not entirely dependent on traditional oil revenues, which remain vulnerable to fluctuations in global markets
By Najeh Bilal Al-Seyassah/Arab Times Staff
