Article

Sunday, November 23, 2025
search-icon

Kuwait outlines new privatization push in 2025/26 annual development plan

Four key policies aim to boost citizen ownership

publish time

23/11/2025

publish time

23/11/2025

Kuwait outlines new privatization push in 2025/26 annual development plan
Strong credit ratings and policy shifts drive investor confidence in Kuwait.

KUWAIT CITY, Nov 23: The 2025/2026 Annual Development Plan Report revealed four key policies to support the implementation of the Public Privatization Program, one of nine programs outlined in the plan. This program aims to expand the privatization of government assets and services by updating the legislative framework and introducing new privatization initiatives in operational sectors. It will enhance public finance reform, diversify revenue sources, improve services, and generate job opportunities for citizens in the private sector.

The copy of the report, which cited the four policies as follows: develop legislative and regulatory frameworks to increase the citizens’ ownership in companies slated for privatization, support the modification of competition regulations in the relevant sectors (a policy that is underway), establish a company based on a partnership model in the targeted sectors, and allocate shares in the education and health sectors to citizens at nominal prices.

The report called for the development of a social safety net by providing education and health insurance vouchers to citizens upon privatization of operational sectors, reduction of the budget deficit by setting a ceiling of not more than five percent of current expenditures, investment of surpluses generated from privatization, and distribution of a portion of the returns to citizens. It indicated that the most difficult challenges in the implementation of the program are the decline in the shares of citizens and the private sector in the ownership of public assets, dominance of the public sector over operational sectors, and imbalance in public finances. The objectives of the program include involving citizens in privatized assets, gradually privatizing operational sectors, restructuring public finances, and privatization of North Shuaiba Power Plant, which is being implemented through the technical body of the privatization program, using a nongovernmental financing mechanism

By Mohammad Ghanem Al-Seyassah/Arab Times Staff