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AIIB membership opens new financing path for Kuwait

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Move follows new public debt law, aligns with national infrastructure agenda: Analysts

KUWAIT: Kuwait has officially joined the Asian Infrastructure Investment Bank (AIIB) as a full member, becoming the 111th country to join the China-founded multilateral lender. The announcement was made during the bank’s 10th annual meeting, held in Beijing from June 24 to 26, where Kuwait was represented by Saad Al-Rasheedi, Director of the Department of International Economic Cooperation.

The move is seen as a strategic milestone, aligning Kuwait’s development financing agenda with one of the world’s fastest-growing multilateral banks focused on sustainable infrastructure, energy, and digital connectivity. Kuwait’s participation was formalized through Decree No 66 of 2025, ratified in early May.

Kuwait’s Ambassador to China, Jasem Al-Najem, welcomed the development, saying it will strengthen Kuwait’s role in international partnerships, particularly in infrastructure, energy, and transportation. “This step enhances Kuwait’s global position in multilateral development financing,” he told KUNA.

Founded in 2016 and headquartered in Beijing, the AIIB has grown into a key global player, with over 100 member states and more than $60 billion in approved infrastructure financing. The bank is expanding its presence in the Middle East, having opened its first overseas office in Abu Dhabi in 2023, and launching major partnerships with Saudi Arabia and the UAE.

Green financing

Although Kuwait has not yet received direct funding from the AIIB, its accession reflects a broader shift in its fiscal policy. In March 2025, the government enacted Law No 60 on Liquidity and Public Debt, introducing a KD 30 billion debt ceiling and enabling the issuance of sovereign instruments with maturities of up to 50 years. The law is designed to provide long-term financial stability and expand access to international capital.

Finance Minister Noura Al-Fassam described the law as key to Kuwait’s economic reform agenda. “This marks a crucial step toward building a diversified and sustainable economy that benefits both the state and its citizens,” she told KUNA in March. Faisal Al-Muzaini, Director of Public Debt Management, said the new framework would help fund infrastructure and development projects—potentially in partnership with institutions like the AIIB—and boost Kuwait’s profile as an investment destination.

Commentary from Kuwaiti law firm ASAR in May noted that joining the AIIB signals Kuwait’s intent to play a more active role in green financing and global infrastructure development, especially in priority sectors like renewable energy and power generation. Analysts say this complements the public debt law, which paves the way for blended financing models involving both traditional and multilateral sources. With a wave of Public-Private Partnerships (PPPs) being reactivated—such as the Zour North Phases 2 and 3 Independent Water and Power Plants and KDIPA’s economic zones—AIIB membership is expected to provide both funding and technical support, ASAR analysts said.

The move also reflects Kuwait’s deepening ties with China. Over recent years, the two countries have signed multiple memoranda of understanding related to infrastructure, energy, and logistics—sectors that overlap with AIIB’s core investment areas.

Following GCC’s lead

Kuwait’s accession comes as the GCC as a whole strengthens its relationship with the AIIB, which now includes all six Gulf countries as members. The bank’s growing presence in the region reflects increasing demand for infrastructure investment that supports economic diversification, energy transition, and digital transformation—key elements in Vision 2035, Saudi Vision 2030, and UAE’s Net Zero 2050.

AIIB financing typically takes the form of sovereign loans, equity investments, and PPP arrangements, with a focus on financially sustainable, climate-aligned projects. The bank has committed to allocating at least 50 percent of its funding to climate action by 2025, aligning with global sustainability goals.

Still, the AIIB has not escaped geopolitical scrutiny. While officially multilateral, the bank is heavily influenced by China, its largest shareholder with over 25 percent of voting power. This has raised concerns—particularly in Western policy circles—that the AIIB may serve as a tool for expanding Chinese influence through infrastructure diplomacy. Although the bank has taken steps to demonstrate independence—such as suspending operations in Russia and Belarus following the Ukraine invasion—skepticism persists over how political dynamics could shape future lending decisions.

Still, in a world increasingly defined by multipolar financing ecosystems, Kuwait’s participation in the AIIB offers a new avenue for advancing sustainable development goals, attracting foreign investment, and engaging with a shifting global economic order.

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Kuwait Commerce Min.: Protecting industrial system is Nat’l responsibility

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 KUWAIT: Minister of Commerce and Industry, and Chairman of the Public Authority for Industry (PAI) Khalifa Al-Ajeel said on Monday that protecting the commercial and industrial system is a “national responsibility that requires concerted efforts.”

Minister Al-Ajeel emphasized in a statement to KUNA following an extensive inspection campaign in the south Amghara scrap yard, to “firmly deal with all violations and encroachments in accordance with legal frameworks where no one is above the law.”

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Al-Ajeel confirmed the continuation of inspection campaigns as well until the desired goals are reached, foremost being is restoring order and discipline to the area and removing all violations and encroachments.

He affirmed the ministry and the PAI’s commitment to cooperating with relevant authorities to continue these campaigns to ensure a safe and organized industrial and commercial environment.

The campaign resulted in the seizure of several violations and closure of several non-compliant units in preparation for taking necessary legal action against their exploiters.

Participating in the campaign was General Fire Force (KFF) Chief Major General Talal Al-Roumi, along with several executive leaders from the PAI. — KUNA

 

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Human Rights Committee session begins with focus on Gaza, regional challenges

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CAIRO: The 56th regular session of the Arab Permanent Committee for Human Rights commenced on Monday with the participation of Kuwait and representatives from Arab states concerned with human rights affairs. In his opening address, Ahmed Maghari, supervisor of the Human Rights Department at the League of Arab States, underscored the dire humanitarian situation in Gaza, calling it a stark indicator of the region’s human rights reality. “We cannot speak of the state of human rights without acknowledging the catastrophic conditions faced by our brothers in Gaza, where securing the most basic necessities has become a matter of survival,” he said. Maghari described the ongoing Zionist aggression in Gaza as a profound moral and humanitarian challenge, noting that the Palestinian people continue to endure daily suffering under constant bombardment, displacement and destruction. He lamented the international community’s continued inaction in the face of clear violations of international law and human rights norms. “The occupying power persists in defying international legitimacy and the decisions of the General Assembly, the Security Council, and the International Court of Justice,” he said.

Held at a time of mounting regional tensions, the session comes amid escalating challenges that directly affect fundamental human rights. Maghari highlighted the Committee’s historic role since its establishment in 1968 in developing the Arab human rights framework both legally and practically, while also fostering cooperation with regional and international partners. He expressed hope that the session would yield effective recommendations to help confront the pressing challenges in the region. He pointed to the rise of conflicts and violence globally, along with the resulting serious human rights violations, as major concerns.

Emerging issues such as the intersection of human rights with climate change, artificial intelligence, and the spread of alien ideologies that undermine human dignity were also noted. “In light of these challenges, we must reinforce our solidarity and collective action to enhance peace, stability, and the security of our societies,” Maghari added. The two-day session, chaired by Ambassador Talal Al-Mutairi, Chairman of the Arab Permanent Committee for Human Rights, will review the General Secretariat’s report on the implementation of previous recommendations up to the 55th session.

Discussions will also focus on Zionist violations in occupied Arab territories, the plight of Arab prisoners and detainees in Zionist prisons, and the issue of the bodies of Palestinian and Arab martyrs held in so-called “numbered cemeteries.” Other agenda items include the Arab Charter on Human Rights and preparations for Arab Human Rights Day, which will be observed on March 16, 2026. Kuwait is represented at the meeting by a delegation led by Assistant Foreign Minister for Human Rights Affairs Ambassador Sheikha Jawaher Ibrahim Al-Duaij Al-Sabah.— 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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