KUWAIT CITY, Aug 15: Amid Kuwait’s efforts to expand investment and economic opportunities, government efforts to attract global companies have generated a tangible flow of foreign investment into the country. The recent signing by Kuwait Petroleum Corporation (KPC) of the USD 16 billion Shaheen Project agreement marks a major step toward diversifying financing sources and strengthening global investor participation in the national economy.
The project seeks to monetize existing assets through a USD 16 billion sale-and-leaseback model for crude oil pipelines, generating estimated cash proceeds of USD 7.85 billion. It is Kuwait’s largest foreign direct investment to date and a key element of plans to finance capital expenditure and raise crude oil production capacity to four million barrels per day. The agreement was signed with a consortium of major global infrastructure investors and investment institutions, led by funds managed by Blackstone, Brookfield and KKR. Oil expert Kamel Al-Harami said the project represented a major shift in the philosophy of Kuwait’s oil sector, the lifeline of the economy and the country’s main source of national income.
Al-Harami told KUNA that the new approach opens the door to global banking alliances to finance one of the state’s most important and sensitive assets, providing financial revenues amid budget deficits and liquidity needs. He said the project also reflects a comprehensive review of the sector’s financing, efficiency, productivity and competitiveness, alongside plans to raise oil production capacity. “Shaheen” is not merely an alternative form of borrowing, but the beginning of a measured approach to financing and investment based on transparency, governance and sound management, he said. He added that the project forms part of a broader vision to enhance competitiveness, expand refining capacity, modernize refineries and broaden investment partnerships while preserving oil wealth for future generations
Meanwhile, Reconnaissance Research Director and CEO Abdulaziz Al-Anjeri said the government’s approach in attracting investment through the Direct Investment Promotion Authority and public-private partnership framework reflected an important shift in investment management. Attracting foreign investors requires genuine opportunities in sectors such as energy, infrastructure and major projects, he said, stressing the importance of developing the investment environment alongside expanding partnership projects. Al-Anjeri described the Shaheen Project as an important example of opening the door to local and international capital and expertise to finance and implement projects instead of relying exclusively on direct government capital spending.
He said expanding this approach would strengthen financial sustainability, ease pressure on capital expenditure and create a broader market for local and foreign investors. It would also develop Kuwaiti capabilities through exposure to global institutions and facilitate the transfer of knowledge and advanced professional practices, he added. Al-Anjeri stressed that the state is not relinquishing its assets or role, but benefiting from private-sector capital, expertise and operational efficiency under partnership agreements. The real value lies in attracting investors while simultaneously creating opportunities for investment, he said, describing this as a transformation capable of translating Kuwait Vision 2035 into tangible projects. Foreign direct investment inflows into Kuwait reached KD 126.4 million in 2025, equivalent to about USD 412.4 million.
The Central Bank of Kuwait said the stock of foreign direct investment reached approximately KD 5.4 billion at the end of 2025, or USD 17.6 billion, reflecting continued investment accumulation and Kuwait’s attractiveness as a destination. The bank said foreign direct investment covers investments giving foreign investors an influential stake of at least 10 percent in an enterprise. When all financial instruments are included, total inward investment flows rise to approximately KD 11.8 billion, equivalent to USD 38.5 billion. Kuwait ranked fifth among Arab countries and 52nd globally in the DHAMAN Investment Climate Index 2025, advancing two places from the previous year. According to the Arab Investment and Export Credit Guarantee Corporation (DHAMAN), foreign direct investment inflows into Kuwait reached USD 497 million.
The strategy of attracting global investment produced further results in July, when Blackstone announced plans to open an office in Kuwait through the Direct Investment Promotion Authority. Blackstone President and Chief Operating Officer Jonathan Gray said Kuwait possessed the resources, vision and leadership to become an important regional commercial and financial center. Global asset manager Franklin Templeton officially began operations in Kuwait in late June, further strengthening the country’s position as a strategic investment hub. The company, which manages more than USD 1.64 trillion in assets, plans to support Kuwait Vision 2035 by strengthening specialized financial services, supporting economic diversification and developing human capital. It also seeks to encourage modern financial technologies within Kuwait’s investment ecosystem.
Franklin Templeton’s entry follows the opening of a BlackRock office in Kuwait last year. BlackRock said its presence supported Kuwait’s financial ambitions and contributed to developing the local investment landscape. In October 2025, the Direct Investment Promotion Authority announced the opening of a Goldman Sachs office in Kuwait, supporting a strategic partnership spanning 50 years. Goldman Sachs said Kuwait was undergoing rapid transformation aimed at achieving economic growth and creating opportunities for its citizens. Kuwait continues discussions with global companies to strengthen cooperation, remove barriers and facilitate investment flows. The government has repeatedly expressed openness to attracting more international companies to establish regional headquarters in Kuwait. It has also prioritized measures to stimulate economic activity, including capital spending on development projects, stronger private-sector partnerships and reforms to the framework governing private-sector activity. These efforts are complemented by legislative reforms supporting economic transformation and strengthening the flow of quality investments.(KUNA)
