Kuwait’s financial reforms and clear economic vision have strengthened investor confidence and improved international ratings. Global institutions, including the IMF, World Bank, and FATF, have acknowledged the country’s steady economic progress.
Economists told Kuwait News Agency (KUNA) that these positive assessments reflect real improvements in Kuwait’s economic performance. They said the country is shifting from managing stability to driving growth, with a focus on sustainable development, private sector empowerment, and high-quality investment.
Abdullah Al-Turkait, Chairman of the Union of Investment Companies, said recent international reports confirm Kuwait’s recovery and balanced growth path. He noted that stronger ratings highlight effective economic policies and Kuwait’s ability to adapt amid global energy market volatility.
IMF projections show Kuwait’s economy growing by 2.6 percent in 2025, with further expansion expected in 2026. Meanwhile, the World Bank forecasts growth of 2.2 percent in 2025 and 2.7 percent in 2026. Inflation is also expected to ease, declining from 2.9 percent in 2024 to 2.3 percent in 2025.
In November 2025, Standard & Poor’s upgraded Kuwait’s sovereign rating to “AA-”. The agency cited financial reforms, sustainable finance legislation, and progress in diversifying non-oil revenues. Al-Turkait said the upgrade reduces sovereign and corporate borrowing costs, boosts foreign direct investment, and supports long-term growth.
Foreign direct investment in Kuwait rose by 8 percent year on year, reaching KD 223 million (USD 725 million) in 2024–25. This increase reflects growing investor confidence in reforms and an improving business environment.
Mohammad Al-Jouan, Secretary-General of the Kuwaiti Economic Society, stressed that international evaluations rely on strict quantitative models. He pointed to fiscal discipline, strong banking governance, monetary stability, and institutional reforms as key drivers of the positive outlook.
The approval of the public debt law and stronger anti-corruption measures also supported the improved ratings. These steps show Kuwait’s ability to manage resources efficiently while maintaining fiscal discipline.
Experts agree that sustaining reform momentum remains essential. Accelerating structural reforms, empowering the private sector, and reducing reliance on oil will further strengthen Kuwait’s growth prospects.
Dr. Osama Al-Falah, an economics professor at Gulf University for Science and Technology, added that these international assessments enhance Kuwait’s financial credibility. He said they attract high-quality investments and signal a stable, forward-looking economic environment aligned with Vision 2035.
