Kuwait Approves Investment Authority and Central Bank to Borrow Money Locally and Internationally: Report
Kuwait has given permission to its investment authority to borrow money from international markets. At the same time, it has allowed the Central Bank of Kuwait to take loans within the country, according to a decree published in the official gazette, reported by Reuters on Sunday.
Kuwait’s Plan to Borrow Money at Home and Abroad
Finance Minister Noura Al-Fassam has approved a plan to borrow money to help pay for infrastructure projects. Kuwait, which earns most of its income from oil, wants to grow other parts of its economy. The country also expects a budget shortfall of about $20.5 billion for the 2025-2026 financial year.
This decision comes after a law passed in March 2025 that allows the government to borrow up to $98 billion (30 billion Kuwaiti dinars) for up to 50 years. The Kuwait Investment Authority (KIA) will manage borrowing from outside the country in major currencies. The Central Bank will handle borrowing within Kuwait, using either Kuwaiti dinars or foreign currencies. Both will work closely with the Ministry of Finance.
Kuwait plans to borrow $10–20 billion (3–6 billion Kuwaiti dinars) during 2025–2026 to fund major projects like the Mubarak Al Kabeer Port and the T2 Airport Terminal Expansion, according to Reuters and the Ministry of Finance.
The goal is to support economic growth beyond oil and attract foreign investors. This will be Kuwait’s first return to international debt markets since 2017, after delays due to political issues.
Kuwait’s Economy
In 2024, Kuwait’s economy shrank by 2.6% because of falling oil prices and reduced oil production under OPEC+ (a group of oil-producing countries). This is based on data from Fitch Ratings.
However, the economy is expected to grow by 2.7% in 2025. This is slightly lower than earlier predictions (2.8%) because U.S. tariffs might push oil prices down, which could hurt other industries in Kuwait.
The recovery is expected thanks to higher oil production allowed by OPEC+ and growth in non-oil businesses.
For the 2025–2026 budget (April 1, 2025 – March 31, 2026), Kuwait expects to earn about $59.5 billion (18.2 billion dinars) and spend about $80.1 billion (24.5 billion dinars), according to the Cabinet’s General Secretariat.
Published: 26th May 2025
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