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Fitch affirms Kuwait’s rating at ‘AA-‘ with stable outlook

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KUWAIT: The Central Bank of Kuwait announced Friday that Fitch Ratings- one of the big three credit rating agencies, affirmed Kuwait’s long-term foreign-currency issuer default rating (IDR) at ‘AA-‘ with a stable outlook.

A CBK statement, received by KUNA, carried the following highlights from Fitch report:

Kuwait’s ‘AA-‘ rating is supported by its exceptionally strong fiscal and external balance sheets, but is constrained by weaker governance than peers, heavy dependence on oil and its generous welfare system and large public sector, which could be a source of long-term fiscal pressure, despite spending rationalisation efforts. The prospects remain uncertain for meaningful structural reforms to reduce reliance on oil revenue, although legislation has been approved to allow debt issuance and improve fiscal financing flexibility.

According to the Fitch’s report, Kuwait’s external balance sheet remains the strongest of all Fitch-rated sovereign. “We forecast its sovereign net foreign assets will rise to 607 percent of GDP in 2025, from an estimated 576 percent in 2024, more than 10x the ‘AA’ median,” reads the report.

“The bulk of assets are held in the Future Generations Fund managed by the Kuwait Investment Authority (KIA), which also manages the assets of the General Reserve Fund (GRF), the government’s treasury account.”

On the reforms, the agency said that the Kuwaiti government has begun implementing reforms that had stalled under previous administrations due to legislative gridlock. The government has approved a financing and liquidity law, allowing debt issuance for the first time since the previous law expired in 2017. The new law outlines plans to raise KD 30 billion (about $100 billion), equal to about 60 percent of GDP over the next 50 years. This will help alleviate pressure on the General Reserve Fund (GRF), support the development of local capital markets, establish a benchmark yield curve and support development projects.

It projected a surplus of 10 percent of GDP in FY25, up from 8.9 percent in FY24. It also expected the budget deficit to widen to 5.6 percent of GDP in FY25 (from 2 percent in FY24), compared with the projected ‘AA’ median of 2.6 percent, despite spending rationalisation efforts.

“We expect expenditure to rise, largely reflecting the government’s drive to execute delayed capital projects, but to remain below 51 percent of GDP. Revenue will continue to decline due to a drop in oil revenue from lower prices, although the OPEC+ decision to unwind production quotas from 2Q25 should mitigate this loss,” it added. “We project a drop of about 3 percent of GDP over FY24, with non-oil revenue rising modestly. Our FY25 forecast assumes about 70 percent of the deficit will be financed through domestic and external borrowing, with the remainder covered by GRF assets.”

It expected the resumption of debt issuance, combined with projected fiscal deficits and lower oil prices, to increase government debt/GDP from 2.9 percent in FY24 to nearly 12 percent in FY27. “Nonetheless, we expect debt to remain well below the projected 2027 ‘AA’ median of 52.4 percent of GDP,” added the agency.

It projected that the real GDP to return to growth in 2025, expanding by 1.7 percent, after two consecutive years of contraction driven by OPEC+ oil production cuts. “We forecast annual inflation will remain below 3 percent in 2025-2027, although the central bank may be cautious about additional rate cuts given rising geopolitical risks,” it stated.

The agency noted that conflicts in the Middle East and disruptions to Red Sea shipping have had a minimal impact on Kuwait, which has large government assets that provide an important buffer to support the economy if tensions were to escalate.

However, hydrocarbon dependence weighs on Kuwait’s rating, rendering budgetary outcomes highly sensitive to oil prices.

The London-based agency noted that Kuwait has an ESG Relevance Score (RS) of ‘5[+]’ for Political Stability and Rights and the Rule of Law, Institutional and Regulatory Quality and Control of Corruption.

“These scores reflect the high weight that the World Bank Governance Indicators (WBGI) have in the country’s proprietary Sovereign Rating Model. As Kuwait has a percentile rank above 50 for the respective governance indicators, this has a positive impact on the credit profile,” it pointed out. – KUNA

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Kuwaiti PM rep. reaffirms commitment to dialogue, regional security

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 ALULA, Saudi Arabia: Representing His Highness the Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah, First Deputy Prime Minister and Interior Minister Sheikh Fahad Yusuf Saud Al-Sabah stressed Wednesday that Kuwait’s participation in Munich Security Conference (MSC) Leaders Meeting, reflects commitment to regional dialogue and cooperation.

In remarks to KUNA, on the sidelines of the meeting in AlUla city, Sheikh Fahad condemned Israeli aggression against Qatar and Gaza as a violation of international law, emphasizing that the assault posed a direct threat to Gulf collective security and broader regional stability, urging urgent international attention.

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He noted that the meeting provided a vital platform to discuss pressing global and regional security challenges, particularly the escalating conflicts and humanitarian tragedies in Gaza and the occupied Palestinian territories, where participants agreed sustainable security remains impossible amid ongoing Israeli aggression.

He warned of grave consequences from escalating conflicts caused by Israeli occupation’s aggression, stressing risks to Gulf stability, while noting deliberations also addressed maritime and energy security, non-proliferation, food and water security, economic challenges, and shared transnational threats facing the international community.Reaffirming Kuwait’s commitment under its current presidency of the GCC, Sheikh Fahad stressed the importance of bolstering collective security, unifying Gulf positions, and strengthening regional and international partnerships, while praising Saudi Arabia’s warm hospitality and MSC’s role in organizing this vital meeting. — KUNA

 

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Deliveroo Kuwait unveils exclusive global dishes

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KUWAIT: Deliveroo Kuwait is serving up a global culinary journey with the launch of the new dishes from “The Exchange Program”. The first-of-its-kind initiative sent four of Kuwait’s top chefs abroad to explore viral food trends. Each created a fusion dish inspired by their journey, available exclusively on Deliveroo.

The program kicked off with Chef Khaled Al-Baker of Young Po, who took inspiration from the bustling streets of Seoul, South Korea, to introduce Rabokki. The dish combines chewy rice cakes and ramen noodles in a spicy, savory sauce, bringing the authentic flavors of Korean street food straight to Kuwait.

From Rome, Italy, Chef Faisal Al-Nashmi of San Ristorante is introducing the Maritozzi Box. Featuring indulgent cream-filled buns, the dish captures the essence of Italy’s sweet traditions while adding Chef Al-Nashmi’s modern touch. Chef Sawsan Daana of Matbakhi is channeling the spirit of Athens, Greece, with the Savory Souffra. Inspired by the communal dining tables of the Mediterranean, this dish celebrates togetherness through a vibrant spread of flavors that highlight the richness and warmth of Greek cuisine.

Finally, OH G!’s Chef Ghalia Hayat is bringing a taste of London, England, with the Donut Pudding Ice Cream. Reinventing classic British desserts, this whimsical dish brings together Hayat’s salted caramel pudding ice cream with a decadent chocolatey fudge swirl and chunks of donut, to deliver a unique sweet experience that will surprise and delight.

Deliveroo Kuwait’s Exchange Program is more than just a menu — it’s a cultural experience. By spotlighting Kuwaiti chefs and their creative reinterpretations of international dishes, the program bridges food trends with local talent, inviting customers to explore the world without leaving their homes. All dishes are available now and for a limited time, exclusively on Deliveroo Kuwait.

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Kuwait to standardize recognition of foreign high school diplomas

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KUWAIT: Kuwait’s ministers of education and higher education are working on a unified system to recognize foreign high school diplomas, a move that comes amid long-running concerns over fairness in the government’s scholarship program.

Every year, thousands of Kuwaiti high school graduates compete for all-expenses-paid government scholarships to study abroad. While students from public, private, and foreign schools can apply, critics have repeatedly accused the program of favouring graduates of foreign-language private schools — a claim officials have repeatedly denied.

On Wednesday, Minister of Higher Education and Scientific Research Dr Nader Al-Jallal and Minister of Education Jalal Al-Tabtabai held a joint meeting to discuss a standardized process. Senior officials from both ministries and representatives from higher education institutions also attended.

In a joint statement, the ministers said they focused on “organizational and technical aspects of the recognition process in a way that limits grade inflation and ensures fairness and equal opportunity for graduates of the Ministry of Education who wish to join various higher education institutions inside and outside the country.”

They also emphasized “the importance of continuing coordination and working in a team spirit between the two sides to reach an integrated and fair system that reinforces confidence in the mechanisms for recognizing foreign secondary school certificates” and committed to implementing the agreed-upon measures “to ensure swift completion and achieve the desired goals.”

The ministries said the effort will help unify procedures to meet the requirements of the coming phase and serve the public interest of students and their families. — Agencies

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