Kuwait has passed a new debt law to strengthen its economy and attract investors. The law sets a debt limit of 30 billion Kuwaiti dinars ($97.4 billion). It also allows the government to issue bonds with a repayment period of up to 50 years. This marks Kuwait’s return to international debt markets after nearly eight years.
The government aims to reduce its dependence on oil and create a more stable economy. Finance Minister Noura Al-Fassam said this law is a major step toward financial stability. She explained that it will help manage government spending and fund important projects. With this move, Kuwait hopes to improve its credit rating and gain investor confidence.
For years, Kuwait faced challenges in passing a debt law due to political conflicts. The constant disagreements between parliament and the cabinet delayed economic progress. However, the new Emir, Sheikh Mishal Al-Ahmad Al-Sabah, is determined to push through financial reforms. Since taking office in December 2023, he has focused on breaking political deadlocks.
The country’s budget deficit for 2024-2025 is expected to reach 5.6 billion dinars ($18.33 billion). The government has planned spending of 24.5 billion dinars for the same period. By issuing bonds, Kuwait can ease pressure on its General Reserve Fund. This law also provides more funding options for important projects, boosting the economy.
Many experts see this as a positive change for Kuwait. Economist Monica Malik noted that it signals progress in financial reforms. She believes the law will encourage investment and support economic growth. A well-managed debt strategy can lead to stronger financial stability.
In the coming months, the government may introduce a new mortgage law. This would be another step toward financial reforms. Kuwait’s new debt law is a key milestone in its efforts to modernize its economy and attract global investors.
