Kuwait is making significant strides in its economic diplomacy project, which is nearing completion with a progress rate of 87.4%. The initiative, which is expected to be fully completed next year, focuses on enhancing Kuwait’s economic image and attracting foreign investments.
The project aims to strengthen Kuwait’s diplomatic and economic relations globally. By coordinating efforts with international organizations, it seeks to boost Kuwait’s standing as a stable and secure environment for investment. This is part of the broader development plan for the 2024-2025 fiscal year, which includes a series of strategic projects designed to showcase Kuwait’s economic achievements and make it an appealing destination for development and investment.
One key success of this initiative has been the dramatic increase in foreign direct investment (FDI). In the previous fiscal year, FDI in Kuwait surged by 180%, reaching 649 million dinars. This was a substantial rise from 232 million dinars in the prior year. Such an increase highlights the growing confidence international investors have in Kuwait’s economic prospects.
Kuwait’s efforts in economic diplomacy have also led to its election as Vice President of the Steering Committee of the International Association of Investment Promotion Agencies (WAIPA). This prestigious position allows Kuwait to play a key role in global discussions on investment promotion and exchange valuable insights with other countries to enhance investment flows.
The government has also launched several initiatives to improve Kuwait’s image, positioning it as a safe, stable, and business-friendly country. As part of these initiatives, major international companies have been attracted to invest in Kuwait, reinforcing its status as a regional and global business hub. These efforts align with the country’s vision to diversify its economy and foster sustainable economic growth.
Looking ahead, Kuwait is set to launch several major projects in the near future. These include the economic zone project, Mubarak Port, and new residential cities. These initiatives are expected to further strengthen the country’s appeal to international investors.
The foreign direct investments have come from a variety of countries, with five countries accounting for 62.6% of total foreign investments in Kuwait. The Netherlands leads the pack, contributing 27.95% of the total investments, valued at 500 million dinars. China follows in second place, with 12.5% of the investments, while the British Virgin Islands, Ireland, and Canada round out the top five.
Investment sources are diverse, with companies from 34 different countries contributing to the overall foreign direct investments. European countries have been the largest contributors, accounting for nearly 60% of total investments, followed by Asia at 28.5%, North America at 9.5%, and Africa at 1.9%.
Kuwait’s strategic economic diplomacy efforts are proving successful, and the country’s economic image is expected to continue to improve. With upcoming projects on the horizon, Kuwait is positioning itself as a premier destination for international investment.
