At the World Economic Forum (WEF) in Davos, senior ministers positioned Kuwait as a low-risk market for foreign capital and a steady member of the influential Gulf economic bloc.
Minister of Electricity, Water and Renewable Energy, Minister of Finance, and Acting Minister of State for Economic Affairs and Investment, Sabeeh Al-Mukhaizeem, recently spoke to the media.
Al-Mukhaizeem noted that the turbulence that has unsettled global markets is far removed from the Gulf Cooperation Council countries. Kuwait has enjoyed political continuity, which has created a stable and secure environment for long-term investors.
Minister of Commerce and Industry Khalifa Al-Ajeel also reiterated the country’s stability and described Kuwait’s presence at Davos as an opportunity to project Kuwait’s economic vision on a global stage.
Participation is part of an overarching drive to strengthen strategic partnerships, tighten public-private collaboration and tap into international expertise to support economic diversification.
Al-Ajeel pointed out how the Gulf states are now among the most stable blocs, with ambitions of playing a key role in global economic debates and establishing the region as a driver of sustainable growth.
However, while the messaging and framing oozed confidence, there is a more complex reality to grapple with.
Leaders are Keen to Accelerate Economic Diversification Plans
Even with all of its fiscal buffers and political stability, Kuwait is still behind its neighbours when it comes to attracting foreign direct investment.
According to figures recently released, Kuwait’s foreign direct investment (FDI) dropped to $614 million in 2024, falling from its peak of $2.1 billion the year before.
By contrast, the United Arab Emirates (UAE) and Saudi Arabia accounted for more than 80% of GCC FDI, raking in billions of dollars via aggressive reforms, economic liberalisation and investor-friendly policies.
Officials know the obstacles they must surmount. Bureaucratic hurdles, a domineering public sector and slow non-oil reforms have frustrated investors.
While the Kuwait Direct Investment Promotion Authority (KDIPA) approved around $725 million in new licences across 16 sectors for the 2024/25 fiscal year, it has not scaled inflows.
Al-Mukhaizeem confirmed he was attending alongside the minister of commerce and industry, following directives from Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah. The order from the hierarchy is to accelerate the implementation of approved development plans.
Consequently, the Kuwaiti delegates held a meeting on the side during the forum to tackle crucial issues such as housing reform, private residential development, public debt management and other structural changes that can unlock private-sector growth and bolster non-oil revenues.
Kuwait Must Consider Lucrative Untapped Markets
One area that the government has chosen to ignore but could be relevant to this conversation is the country’s stance on gambling and gaming-related industries.
Kuwait has traditionally prohibited gambling, but this has not prevented Arab players from fuelling their passion for casino games such as blackjack and roulette.
The best online casino sites in Kuwait featured on comparison platform كازينوالكويت.com/en/ operate under licenses issued in other jurisdictions.
Many nations which tapped into online betting, lotteries and gaming platforms to generate taxable revenue, technology investment and job opportunities.
Places such as Macau, Las Vegas, Monte Carlo and Marina Bay have anchored their economies in gambling and recorded success.
The UAE has followed suit, establishing a federal authority to license and regulate gambling. The country’s first iGaming platform is live, and a first physical casino will open its doors next year.
Kuwait cannot afford to lag behind, especially with its neighbours venturing into gambling and tying it to tourism. Its next step must be reopening conversations about gaming and establishing a regulatory authority to ensure that the industry is aligned with international best practices.
Back in Davos, Kuwaiti ministers emphasised the importance of momentum. Al-Ajeel told KUNA that Kuwait’s engagement in this international dialogue is about also learning from global experts.
That knowledge will be crucial as the country works to overcome constraints and spur diversification of the economy away from hydrocarbons with digital transformation highlighted as a key pillar for growth.
