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New financing law to boost investment and strengthen economy

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KUWAIT: Undersecretary of the Ministry of Finance Aseel Al-Munifi affirmed on Monday that the recently enacted Law No 60 of 2025 on financing and liquidity aims to stimulate the economic environment, attract foreign investments and enhance developmental and economic returns for the state. The law, which came into effect on March 27, also seeks to bolster the banking sector and improve fiscal stability.

Speaking at an introductory conference on the new decree-law, Al-Munifi explained that the legislation equips the government with modern financial tools, enabling access to both local and international financial markets. These tools, she said, will help secure funding for key development projects. “The law will support the restructuring of government financing, reduce borrowing costs, and strengthen Kuwait’s credit rating,” she said. “It reflects positively on the state’s borrowing capabilities under competitive conditions and helps build up financial reserves to meet commitments amid evolving economic circumstances.”

Al-Munifi noted that the new law will serve as an essential mechanism for financing major national projects, particularly in infrastructure, housing, education, and healthcare — sectors included in the government’s general budget for the next five years. She also revealed that preparations for the issuance of the long-anticipated Sukuk Law have been finalized. “The draft has been completed by the Ministry and is currently under discussion in relevant Cabinet committees. It will soon proceed through the constitutional procedures for final approval,” she said.

Meanwhile, Director of the Public Debt Department at the Ministry of Finance, Faisal Al-Muzaini, announced that Kuwait is returning to the financial markets — both domestic and international — for borrowing in the 2025/2026 fiscal year. He described the move as the largest financial market entry in over eight years, implemented under Decree-Law No. 60 of 2025.

Al-Muzaini hailed the law as a landmark in public finance reform, stating it provides the government with a robust legal framework for managing public debt. The framework allows for debt maturities of up to 50 years and sets a borrowing ceiling of KD 30 billion (approximately $92 billion).

He added that the Ministry of Finance has outlined a flexible strategy to engage confidently with financial markets while prioritizing competitive financing costs and diversifying the investor base both geographically and institutionally. One key focus, he said, is developing the local debt market by establishing a yield curve that will serve as a benchmark for future issuances. 

“This law sends a strong message of fiscal discipline and credibility to global markets,” Al-Muzaini said. “It is expected to contribute to enhancing Kuwait’s credit profile, drawing wider investor interest, and advancing the country’s transition toward a diversified economy.” The Public Debt Management Committee, established in 2016, plays a central role in overseeing this strategy. Reporting directly to the Minister of Finance, the committee includes representatives from the Ministry of Finance, the Central Bank of Kuwait, and the Kuwait Investment Authority. It is tasked with approving the annual financing strategy and advising the Minister on public debt matters. – KUNA

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Kuwait plans to crack down on public sector absenteeism by linking attendance to bonuses

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KUWAIT: Kuwait’s Cabinet has directed the Civil Service Commission to establish a new accountability mechanism for unexcused absences in ministries and government entities. The move comes after several government departments reported low attendance rates on the first day back from the Eid holiday, with some offices seeing less than 60 percent of employees return to work. The new system, according to a Cabinet statement, is intended to curb a recurring pattern of absenteeism—particularly on days adjacent to public holidays—and to ensure greater discipline and efficiency across the public sector. The Cabinet has given the Civil Service Commission two weeks to develop a framework linking unexcused absences directly to key areas of employee evaluation, including annual performance reviews, eligibility for excellence bonuses, and promotions. The directive follows growing frustration over what some describe as routine manipulation of leave policies, including the use of sick days to extend holiday breaks—often at the expense of citizens waiting for government transactions.
Attendance lags post-Eid
ublic sector absenteeism has long plagued Kuwait’s government offices, drawing criticism from lawmakers and citizens alike. Despite repeated warnings from the Civil Service Commission, the issue tends to spike around public holidays. The impact of post-holiday absenteeism was evident this week. The Ministry of Social Affairs reported just 50 percent employee attendance on the first official workday following Eid. Public Relations Director Fatima Al-Salama said in a statement the ministry was working to restore full operational capacity gradually while ensuring continuity of essential services. “Administrative leadership is closely monitoring attendance to ensure employees return to their posts in line with established protocols,” she stated. According to Al-Jarida, the Ministry of Electricity, Water, and Renewable Energy fared better, recording a 75 percent return rate. With more than 37,000 employees across the country, officials said the ministry’s operations had resumed without major disruptions. At the Ministry of Public Works, attendance reached 76 percent. — Agencies

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Army, interior ministry forces depart for competition in Jordan

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KUWAIT: A joint force from the Kuwait Armed Forces 25th Commando Brigade and the Ministry of Interior’s Special Forces departed Abdullah Al-Mubarak Air Base this morning to participate in the 14th edition of the Annual Warrior Competition, held at the King Abdullah II Special Operations Training Center in Jordan. In a statement, the Kuwait Armed Forces General Staff described the competition as one of the most prominent military contests, featuring elite special forces from friendly and allied countries competing in field challenges designed to simulate real combat scenarios. The event aims to enhance the operational efficiency of special units and foster the exchange of expertise in counterterrorism and special operations. — KUNA

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Kuwait PM chairs key meeting to accelerate Kuwait-China projects

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Committee briefed on recent consultations with Beijing to speed up implementation

KUWAIT: Kuwait’s Prime Minister His Highness Sheikh Ahmad Al-Abdullah Al-Ahmad Al-Sabah chaired a ministerial committee meeting on Thursday to review the implementation of bilateral agreements and memoranda of understanding (MOUs) signed with China—part of a broader government push to advance the country’s development agenda. Held at Bayan Palace, the meeting marked the 14th session of the committee tasked with tracking progress on joint Kuwait–China initiatives. The session focused on key projects ranging from the Mubarak Al-Kabeer Port and electrical grid upgrades to renewable energy expansion, housing development, and environmental infrastructure such as wastewater treatment and green recycling systems.

Discussions also addressed cooperation in free zones and economic areas. The high-level review comes just days after another strategic meeting chaired by the Prime Minister focused on reviving Kuwait’s Northern Economic Zone, of which Silk City (Madinat Al-Hareer) is a flagship component. Originally envisioned in the 1980s and later reimagined in alignment with China’s Belt and Road Initiative (BRI), the Northern Economic Zone has faced multiple delays but is now receiving renewed attention as part of Kuwait Vision 2035.

During Wednesday’s meeting, Ambassador Sameeh Johar Hayat, Assistant Foreign Minister for Asian Affairs and committee rapporteur, provided a detailed briefing on Kuwait–China coordination, including consultations with Beijing and the Chinese Embassy in Kuwait to accelerate implementation. The Prime Minister instructed committee members to remove obstacles, expedite coordination with their Chinese counterparts, and facilitate technical visits to ensure timely project delivery.

The session also explored expanding strategic cooperation and investment opportunities. Kuwait has had partnerships with major Chinese firms such as Huawei and China Communications Construction Company Limited (CCCC.) These relationships were cemented through multiple MOUs signed in recent years, which now form the backbone of Kuwait’s economic alignment with China under the Vision 2035 roadmap. Wednesday’s meeting included participation from senior ministers and officials across foreign affairs, housing, public works, energy, investment, and legal advisory bodies—signaling a whole-of-government approach to ensuring the China-linked projects contribute meaningfully to Kuwait’s economic transformation.

The meeting was attended by Abdulaziz Dakhil Al-Dakhil, Chief of the Prime Minister’s Diwan; Abdullah Al-Yahya, Minister of Foreign Affairs; Dr Noura Al-Mashaan, Minister of Public Works; Abdullatif Al-Mishari, Minister of State for Municipal Affairs and Minister of State for Housing Affairs; Noura Al-Fassam, Minister of Finance and Minister of State for Economic and Investment Affairs; Dr Subaih Al-Mukhaizeem, Minister of Electricity, Water and Renewable Energy; Sheikh Dr Meshaal Jaber Al-Ahmad Al-Sabah, Director General of the Kuwait Direct Investment Promotion Authority (KDIPA); Salah Atiq Al-Majed, Head of the Fatwa and Legislation Department; and Ambassador Sameeh Johar Hayat, Assistant Foreign Minister for Asian Affairs and committee rapporteur. — Agencies

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