The law, announced by the Ministry of Finance, permits the issuance of financial instruments with maturities of up to 50 years and sets a public debt ceiling of 30 billion Kuwaiti dinars (about $97.36 billion), or its equivalent in major convertible foreign currencies. It will remain valid for 50 years, laying the legal groundwork for Kuwait’s future financial maneuvering.
According to Faisal Al-Muzaini, Director of the Public Debt Department, the law is designed to:
Enable multi-currency financing through a range of financial instruments
Develop local capital markets via a sovereign yield curve benchmark
Finance key development projects, including infrastructure
Attract foreign investments and enhance Kuwait’s competitiveness
Support sovereign reserves and credit ratings for stable long-term borrowing
Al-Muzaini emphasized that in today’s rapidly evolving financial climate, flexible and diversified access to funding is essential for resilience and growth.
The new law comes as Kuwait’s economy faces short-term challenges. The IMF projects a 2.8% contraction in 2024, due to OPEC+ oil production cuts, followed by a 2.6% rebound in 2025. The 2025-2026 national budget forecasts a 6.3 billion Dinar deficit, while inflation rose 2.49% year-on-year in February.
