Kuwait Plans to Return to Globat Debt Market to Finance Development Projects

Undersecretary of the Ministry of Finance Aseel Al-Munifi and Director of Public Debt at the Finance Ministry Faisal Al-Muzaini speak during a presentation of the new debt law. (KUNA)
Undersecretary of the Ministry of Finance Aseel Al-Munifi and Director of Public Debt at the Finance Ministry Faisal Al-Muzaini speak during a presentation of the new debt law. (KUNA)
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Kuwait Plans to Return to Globat Debt Market to Finance Development Projects

Undersecretary of the Ministry of Finance Aseel Al-Munifi and Director of Public Debt at the Finance Ministry Faisal Al-Muzaini speak during a presentation of the new debt law. (KUNA)
Undersecretary of the Ministry of Finance Aseel Al-Munifi and Director of Public Debt at the Finance Ministry Faisal Al-Muzaini speak during a presentation of the new debt law. (KUNA)

Kuwait plans to return to the global debt market this year and is expected to borrow between $10 to $20 billion during the current fiscal year to finance development projects, a finance ministry official said on Monday.

On March 26, the Kuwaiti government issued a debt law that sets the public debt ceiling at a maximum of 30 billion Kuwaiti dinar (about $97 billion), or its equivalent in major convertible foreign currencies. The law also allows the issuance of financial instruments with maturities of up to 50 years.

It is valid for 50 years from the date of its entry into force, establishing a long-term legal framework for regulating public borrowing and liquidity management in Kuwait.

Director of Public Debt at the Finance Ministry Faisal Al-Muzaini said during a presentation of the new debt law that the ratio of debt to gross domestic product (GDP) in Kuwait is minuscule at just 2.9%, whereas it is 60 to 70% in many countries.

Al-Muzaini announced that Kuwait is returning to the financial markets, both domestic and international, for borrowing in the 2025/2026 fiscal year.

He described the move as the largest financial market entry in over eight years, hailing the law as a landmark in public finance reform and saying stating it provides the government with a robust legal framework for managing public debt.

The framework allows for debt maturities of up to 50 years and sets a borrowing ceiling of 30 billion Kuwaiti dinar (approximately $92 billion).

Al-Muzaini added that the Ministry of Finance has outlined a flexible strategy to engage confidently with financial markets while prioritizing competitive financing costs and diversifying the investor base both geographically and institutionally.

One key focus, he said, is developing the local debt market by establishing a yield curve that will serve as a benchmark for future issuances.

“This law sends a strong message of fiscal discipline and credibility to global markets,” Al-Muzaini said. “It is expected to contribute to enhancing Kuwait’s credit profile, drawing wider investor interest, and advancing the country’s transition toward a diversified economy.”

Undersecretary of the Finance Ministry Aseel Al-Munifi said on Monday that the law aims to stimulate the economic environment, attract foreign investments and boost developmental and economic returns for the state. The law, which came into effect on March 27, also seeks to bolster the banking sector and improve fiscal stability, she said.

Al-Munifi explained that the legislation equips the government with modern financial tools, enabling access to both local and international financial markets. These tools, she said, will help secure funding for key development projects.

“The law will support the restructuring of government financing, reduce borrowing costs, and strengthen Kuwait’s credit rating,” she said. “It reflects positively on the state’s borrowing capabilities under competitive conditions and helps build up financial reserves to meet commitments amid evolving economic circumstances.”

Al-Munifi also noted that the new law will serve as an essential mechanism for financing major national projects, particularly in infrastructure, housing, education, and healthcare — sectors included in the government’s general budget for the next five years.

Moreover, she revealed that preparations for the issuance of the long-anticipated Sukuk Law have been finalized. “The draft has been completed by the Ministry and is currently under discussion in relevant Cabinet committees. It will soon proceed through the constitutional procedures for final approval,” she said.



Saudi Arabia Signs 15 GW Renewable Energy Deals in One Week

Saudi Minister of Energy Prince Abdulaziz bin Salman (OPEC website) 
Saudi Minister of Energy Prince Abdulaziz bin Salman (OPEC website) 
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Saudi Arabia Signs 15 GW Renewable Energy Deals in One Week

Saudi Minister of Energy Prince Abdulaziz bin Salman (OPEC website) 
Saudi Minister of Energy Prince Abdulaziz bin Salman (OPEC website) 

Saudi Arabia has signed a raft of contracts for renewable‑energy projects totaling 15 gigawatts (GW) – among the world’s most keenly priced – accelerating its push under Vision 2030 to cut reliance on oil and become a clean‑power heavyweight.

The deals, sealed last week, are expected to turbo‑charge the kingdom’s green‑energy sector, attracting further investment and innovation while creating jobs in manufacturing, logistics and research.

At an international workshop in Riyadh on “Exporting Renewable Energy and Green Hydrogen”, Energy Minister Prince Abdulaziz bin  Salman hailed the prices Saudi developers secured as even lower than China and India.

“Catch up with us if you can,” he quipped.

The minister said the kingdom could now rival China on battery technology after the latest tender in Bisha and is already exporting green hydrogen produced at highly competitive wind and solar tariffs.

Late on Monday, the Energy Ministry launched the first phase of the Yanbu Green Hydrogen Hub with Germany’s EnBW.

The integrated complex will bundle renewable‑power generation, water‑desalination units, electrolyzers and green‑ammonia conversion facilities linked to a dedicated export terminal, helping meet surging global demand for low‑carbon fuels.

Domestic developer ACWA Power also signed agreements and memoranda of understanding with several European partners to ship Saudi renewables and green hydrogen to the continent, dovetailing with Riyadh’s role in an emerging East‑West economic corridor.

Prince Abdulaziz revealed that Saudi Arabia is working on battery‑storage projects with 48 GW of capacity and on a network of carbon‑capture pipelines and other infrastructure.

The kingdom is simultaneously ramping up gas output and upgrading its power‑generation fleet with “the world’s most efficient” turbines, he added.