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Kuwait sets KD 30bn debt cap with 50-year borrowing plan

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KUWAIT: Kuwait has introduced a new financial framework with the issuance of law no. 60 of 2025 on liquidity and public debt, setting a maximum debt ceiling of KD 30 billion (or its equivalent in major convertible foreign currencies). The law also allows the issuance of financial instruments with maturities of up to 50 years, establishing a long-term legal framework for public borrowing. The law will remain in effect for 50 years from its enactment, providing a stable regulatory environment for managing public debt.

Minister of Finance and Minister of State for Economic Affairs and Investment Noura Al-Fassam stated that this law grants Kuwait greater financial flexibility by enabling access to both local and global financial markets. “This strategic approach ensures alignment with global economic developments and sustains the country’s financial stability,” she said. She added that the law is part of the government’s broader efforts to enhance financial stability and accelerate economic development in line with the 2035 New Kuwait vision. “This marks a crucial step in ongoing financial and economic reforms aimed at building a more diversified and sustainable economy that benefits both the state and its citizens,” Al-Fassam noted.

Director of Public Debt Management at the Ministry of Finance Faisal Al-Muzaini outlined the key objectives of the new law, emphasizing that it provides Kuwait with access to a variety of financial instruments through local and international markets. This allows the government to secure funding in Kuwaiti dinars or major foreign currencies, offering greater flexibility in managing public debt and liquidity.

He explained that the law also aims to develop Kuwait’s financial markets by establishing a sovereign yield curve, which will enhance the attractiveness of the country’s financial sector. This, in turn, will create a benchmark for banking and corporate debt issuances, improving financing structures and reducing borrowing costs.

Al-Muzaini highlighted that the new law will contribute to financing major development projects, including infrastructure and strategic initiatives, which will accelerate economic growth. He added that it will also stimulate the local economy by increasing investor confidence, attracting foreign investment, and fostering economic activity.

Another key aspect of the law is its potential to improve Kuwait’s sovereign credit rating, allowing the country to secure loans under more favorable conditions. Additionally, the law aims to preserve the liquidity of sovereign reserves, ensuring financial stability and enabling the government to meet its financial obligations in various economic conditions.

Al-Muzaini emphasized that this law comes at a time of rapid changes in global financial markets, where flexible access to funding is crucial for economic stability. He also highlighted that developing Kuwait’s debt markets enhances its competitiveness as a regional financial hub. “This new framework provides the government with innovative financial tools to manage public finances efficiently while maintaining a sustainable approach to balancing development needs with long-term fiscal stability,” he concluded. – KUNA

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Crown Prince receives Egyptian Deputy PM

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KUWAIT: His Highness the Crown Prince Sheikh Sabah Al-Khaled Al-Hamad Al-Sabah received on Tuesday at Bayan Palace the Egyptian Deputy Prime Minister for Industrial Development and Minister of Transport and Industry, Lieutenant General Kamel Abdulhadi Al-Wazir, and his accompanying delegation on the occasion of their official visit to the country. The meeting was attended by Kuwait’s Minister of Public Works Dr Noura Al-Mashaan and Egypt’s Ambassador to Kuwait Osama Shaltout.– KUNA photos

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Workshop discusses health competency framework

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KUWAIT: The Ministry of Health (MoH) on Monday inaugurated a regional workshop titled “Competency Framework”, aimed at reviewing the preliminary draft of a competency framework for public health professionals. The three-day workshop is organized by the Gulf Center for Disease Control in cooperation with the Gulf Health Council and the Kuwait Center for Disease Prevention and Control (KCDC).

In his opening remarks, Assistant Undersecretary for Public Health at the Ministry, Dr Munther Al-Hasawi, welcomed a distinguished group of public health leaders and specialists from GCC countries, emphasizing the workshop’s importance in light of the increasing need to enhance the efficiency and effectiveness of the public health workforce. Al-Hasawi stressed the critical role of investing in human capital through training, capacity building, and well-structured competency frameworks grounded in scientific and practical methodologies. He noted that public health competency goes beyond technical expertise, encompassing key administrative and interpersonal skills such as leadership, teamwork, and effective communication.

“Competency in public health is the ability to deliver appropriate, effective services to communities while achieving optimal outcomes,” Al-Hasawi said. “It includes service delivery, resource management, community engagement, and cross-sectoral cooperation.” Chairing the workshop, Dr Mohammed Al-Saeedan, Head of the Emergency Department – Public Health at KCDC, told reporters that the session aims to discuss and refine the initial draft of the framework with input from regional decision-makers and experts. The goal, he said, is to develop a comprehensive guide to strengthen the capabilities of the health workforce across GCC countries.

“Competency frameworks contribute to improving public health, increasing life expectancy, reducing the overall health burden, and advancing sustainable development,” Al-Saeedan explained. “Healthy individuals are more productive and better able to contribute to society.” He emphasized the importance of continuously updating public health guidelines and competency standards to build professional readiness and effectively address evolving health challenges. “Guidelines serve as essential tools in disease prevention and health promotion, guiding individuals and communities in making informed health choices that enhance quality of life,” he said.

Al-Saeedan noted that global shifts and the rising prevalence of diseases demand heightened preparedness and response capabilities. “As the world increasingly prioritizes prevention over treatment, public health professionals must be equipped with the highest level of skill and knowledge to manage emergencies and implement effective interventions,” he added. The workshop is expected to result in key recommendations that will shape a unified GCC approach to public health competency development and workforce excellence. — KUNA

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The hidden drivers behind high prices in Kuwait

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Although Kuwait was ranked earlier this year as the second least expensive Gulf country in the 2025 World Cost of Living Index, many residents feel that the prices of certain goods or services remain disproportionately high compared to other countries. While essential services — such as electricity, water, and fuel — are heavily subsidized and therefore inexpensive, other aspects of life, including housing, entertainment, and branded products, often carry a much steeper cost.

Therefore, according to economic expert Dr. Amer Al Tamimi, the root of the issue lies not in government policy, but in people’s behavior — whether it’s business owners inflating prices or consumers adopting high-cost lifestyles. Each year the state allocates no less than KD 6 billion in subsidies for electricity, water, fuel, and even certain food items. “In fact, the government has made life remarkably affordable for citizens — perhaps even too affordable.” But while basic goods may be inexpensive, the same cannot be said for luxury and lifestyle products. According to Al Tamimi, the high standard of living and strong purchasing power among Kuwait’s resident’s fuels intense demand for premium items — from cars and watches to high-end services and entertainment.

“These items might be cheaper elsewhere, but in Kuwait, the appetite for luxury pushes prices higher,” he explained. Even mid-range categories, such as transportation and clothing, are considered expensive when compared to regional or global averages. Social behavior plays a significant role in shaping price dynamics. “Some individuals, despite earning modest incomes, make choices driven by appearances,” said Al Tamimi. “Someone earning KD 1,000 might buy a car with KD 500 monthly installments just to keep up an image.”

This desire to showcase wealth creates an artificial demand for high-end goods and services. As demand rises, so do prices, creating a feedback loop that affects everything from café menus to car dealerships. “There’s a culture of excessive consumption. People need to rethink their habits, as rational consumption can lead to lower prices overall,” he suggested. This culture of overspending is reflected in many lifestyle choices. “I am surprised to see people pay for coffee delivery when they can simply an easily make it at home,” said Altamimi.

While some spending habits may be avoidable, others — like housing — are fundamental and affect nearly everyone. Al Tamimi pointed to Kuwait’s real estate market as one of the most significant contributors to the high cost of living, citing the soaring price of land. “Land alone accounts for around 70 to 75 percent of the total cost of any building,” he explained. “This is very different from many other countries, where land is more affordable and makes up a smaller portion of overall costs.” This imbalance has driven up both property prices and rent, placing a heavy burden on households and businesses alike. For many residents, housing expenses consume a large share of their monthly income.

Another key issue, Al Tamimi argued, is the lack of competition in certain markets. “Some goods are effectively monopolized by one, two, or three importers,” he noted. This concentration of market power gives a small number of players the ability to set prices with little competitive pressure. To address this, he urged efforts to open up the market. “Breaking these monopolies and encouraging more entrepreneurs to enter different sectors could help,” he said. “We need to streamline business procedures and reduce bureaucratic hurdles that currently discourage new players. In many cases, we only have a handful of stores selling certain products. More competition will ultimately benefit the consumer.”

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