Kuwait is getting closer to passing a law that will allow it to borrow money from global markets
Kuwait’s Finance Minister, Noora Al-Fassam, said on Sunday that the Public Debt Law is almost finished and will soon be used to help raise money from international groups, according to the state-run Kuwait News Agency (KUNA).
New Law
At a press conference, Al-Fassam explained that public borrowing under the new law would mainly be used to fund infrastructure and large projects.
In May, Kuwait’s parliament was dissolved for an unknown period, and the constitution was suspended. This gave the emir and the government the power to create laws without the parliament’s approval.
Kuwait last issued bonds in 2017. However, the government has faced problems in passing the Public Debt Law, which is important for Kuwait to return to global debt markets. These delays were mainly caused by opposition from the parliament and strict conditions placed on the government.
At a recent event in Dubai, Al-Fassam said that Kuwait is getting ready to re-enter global debt markets soon.
Budget Deficit
The new law is being introduced while Kuwait is expecting a budget deficit of about $20.5 billion for the 2025-2026 fiscal year.
For the fiscal year from April 1, 2025, to March 31, 2026, Kuwait’s budget is planned to have $59.1 billion in revenue and $79.5 billion in spending. This information was shared by the Cabinet’s General Secretariat.
In December, the International Monetary Fund (IMF) predicted that Kuwait’s economy would shrink by 2.8% in 2024 because of extra cuts in oil production by OPEC+. However, the economy is expected to grow again by 2.6% in 2025 as oil production limits are reduced.
Published: 17th February 2025
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