Kuwait has taken a decisive step to implement its new Public Debt Act, with Finance Minister Noora Al-Fassam authorizing the Central Bank of Kuwait and Kuwait Investment Authority to conduct domestic and international borrowing operations for fiscal year 2025/2026. The resolution establishes a coordinated framework where CBK will handle local financing while KIA manages international borrowing, all under the oversight of the Finance Ministry. This strategic move unlocks funding for critical infrastructure and housing projects that are central to Kuwait’s economic diversification plans.
The authorization breaks a seven-year political deadlock that had prevented Kuwait from utilizing debt financing since 2017. By leveraging its strong fiscal position with a debt-to-GDP ratio under 5%, Kuwait can now access capital markets through sovereign bonds and sukuk issuances while protecting its substantial sovereign wealth reserves. The decision reflects a pragmatic shift in fiscal policy to support the country’s ambitious Vision 2035 development goals through structured borrowing.
Proceeds will fund transformative projects including the $7 billion Silk City development and national housing initiatives, addressing long-standing infrastructure needs. The plan allows Kuwait to capitalize on its AA- credit rating for favorable borrowing terms while maintaining fiscal sustainability. This balanced approach demonstrates Kuwait’s commitment to using debt as a strategic tool for economic growth without compromising its long-term financial stability.
Related topics：
- Business and Financial Fraud? Ai Star Unicorn Goes Bankrupt Microsoft, Amazon, And Middle East Capital Are All Cheated
- A list of A-shares that have disclosed the progress of mergers and acquisitions and restructuring for the leading five consecutive boards this week
- Wall Street Declines Amid Renewed Concerns About the Trade War
