Kuwait Approves Budget with $40 Bln Deficit

Kuwait approved the state budget despite a row at the National Assembly. (Asharq Al-Awsat)
Kuwait approved the state budget despite a row at the National Assembly. (Asharq Al-Awsat)
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Kuwait Approves Budget with $40 Bln Deficit

Kuwait approved the state budget despite a row at the National Assembly. (Asharq Al-Awsat)
Kuwait approved the state budget despite a row at the National Assembly. (Asharq Al-Awsat)

Kuwait’s National Assembly approved Tuesday the government budget for the fiscal year 2021-2022, despite a standoff between members of the parliament.

Speaker Marzouq al-Ghanim said that the budget was passed with a slim majority with 32 MPs out of 63, including 16 ministers in favor and one against, while 30 opposition lawmakers refused to vote.

The budget, proposed by the government in January, projected $76.65 billion in expenditure for the fiscal year that started on April 1, with revenues amounting to $36 billion and a deficit of $40 billion, reported the Kuwait News Agency (KUNA).

The vote came amid heated discussions between the opposition deputies and the government.

The ministers, who are also members of parliament, voted on the budget by standing after members of parliament occupied their seats. They also stood at the entrance to the hall while some deputies rapped on tables in an attempt to disrupt the discussions.

Chaos ensued in the parliament after the vote, and the guards entered the hall to restore order after a fight broke out between the rival MPs.

Ghanim had called for the special session to debate the budget at a time when the nation is trying to boost state finances and support an economy that shrank 9.9 percent in 2020 due to low oil prices and the coronavirus pandemic.

“We have the right to request a special session because all regular sessions have been disrupted,” Ghanim said, referring to opposition tactics.

Opposition lawmakers insist on questioning Prime Minister Sheikh Sabah al-Khalid al-Sabah on the constitutionality of a motion passed in March to postpone any questioning of the premier until the end of 2022, in addition to other issues such as corruption.

Kuwait is currently going through one of the most severe financial crises, as most of the General Reserve Fund has been depleted due to the decline in oil prices and the repercussions of the pandemic.

Finance Minister Khalifa Hamada said after presenting the draft budget that the assets of the Future Generations Fund are growing, but the General Reserve Fund suffers from liquidity challenges.

On Monday, Hamada said that despite the great challenges in the state budget, the executive authority is committed to observing the standard of living of citizens, implementing development projects, stimulating economic growth and supporting the growth of domestic product.

Some 71.6 percent of expenditure is allocated for job support, the minister revealed, while some 15 percent of total spending would go towards development projects, chief among them infrastructure and residential ones.

The draft budget was prepared on the basis of an average oil price of $45 per barrel and a production rate of 2.4 million barrels per day, while the breakeven between expenditures and revenues requires a price of $90 per barrel.



Saudi-European Partnership Launched between SIDF Investment and Investindustrial  

Officials at the signing ceremony between SIDF Investment Company and Investindustrial Group. (SIDF Investment Company) 
Officials at the signing ceremony between SIDF Investment Company and Investindustrial Group. (SIDF Investment Company) 
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Saudi-European Partnership Launched between SIDF Investment and Investindustrial  

Officials at the signing ceremony between SIDF Investment Company and Investindustrial Group. (SIDF Investment Company) 
Officials at the signing ceremony between SIDF Investment Company and Investindustrial Group. (SIDF Investment Company) 

In a significant step toward strengthening Saudi Arabia’s industrial capabilities, SIDF Investment Co., the financial arm of the Saudi Industrial Development Fund, signed a strategic partnership agreement with European private equity firm Investindustrial on Tuesday.

The alliance aims to attract global institutional capital and advanced industrial expertise to the Kingdom, reinforcing its position as a regional hub for high-value-added manufacturing.

Fahad Al-Naeem, CEO of SIDF Investment Co., described the agreement as a pivotal new chapter in the firm’s investment strategy.

“This partnership with Investindustrial is designed to connect niche industrial specializations and operational know-how with global markets,” he said. “It will support Saudi Arabia’s industrial ecosystem and empower the Kingdom to become both a regional and international platform for manufacturing growth.”

Al-Naeem added that SIDF Investment would leverage its deep local market knowledge to smooth the entry of global manufacturers into Saudi Arabia and integrate them into international supply chains.

Investindustrial Chairman Andrea Bonomi expressed confidence in the alignment between the firm’s investment portfolio and Saudi Arabia’s Vision 2030 goals. “Many of our investments are well positioned to support the Kingdom’s strategic ambitions, creating long-term partnerships and delivering sustainable value,” he said.

The agreement was signed in the presence of Prince Sultan bin Khalid bin Faisal, Vice Chairman of SIDF Investment Company, and Italy’s Ambassador to Saudi Arabia Carlo Baldocci.

According to the Saudi Press Agency (SPA), Investindustrial currently manages more than $19 billion in assets and operates across eight global offices. The firm specializes in medium-sized companies, focusing on sustainable value creation and international expansion.

This partnership reinforces the objectives of Saudi Arabia’s National Industrial Strategy and Vision 2030, both of which seek to position the Kingdom as a global center for advanced manufacturing and integrated supply chains.

The collaboration will focus on joint investments to localize advanced industries within the Kingdom, while enabling Saudi small and medium enterprises (SMEs) to tap into global value chains managed by Investindustrial.

Key sectors targeted by the agreement include machinery and equipment, automation, medical devices, food production, and sustainable consumer goods. The goal is to maximize local added value, stimulate innovation, and enhance competitiveness across the Saudi industrial landscape.

This move is expected to accelerate industrial transformation in the Kingdom, paving the way for increased foreign investment, job creation, and greater integration with international markets.