Ministry of Finance Undersecretary Asel Al-Munaifi affirmed on Monday that Law No. (60) of 2025 regarding Financing and Liquidity, issued on March 27, stimulates the economic environment and encourages foreign investments while generating developmental and economic returns for the state and strengthening the banking sector.

Speaking at the introductory conference for the Financing and Liquidity Decree-Law, Al-Munaifi stated that it provides the state with new financial instruments obtainable through local and international capital markets, offering the financing needed for developmental projects.

She added that the law helps improve financing structures, reduces borrowing costs, enhances credit ratings, and positively reflects the state's ability to borrow under competitive terms. These liquidity provisions will strengthen the state's financial reserves and enable it to meet various obligations amid changing economic conditions in both short and long terms.

Al-Munaifi explained that this new legal instrument will have positive impacts as the liquidity will be directed toward financing projects, particularly infrastructure, housing cities, and approved educational and health projects listed in the general budget for implementation over the next five years.

She noted that "the Sukuk Law is nearing issuance, as the Ministry has completed its preparation. It's currently being discussed by specialized committees at the Council of Ministers and will undergo standard constitutional procedures before final approval."

Public Debt Management

Public Debt Management Director Faisal Al-Muzaini stated that Kuwait will return to local and international financial markets for borrowing starting fiscal year 2025/2026 - the largest such move in over eight years - as part of implementing Decree-Law No. (60) of 2025.

Al-Muzaini emphasized that this law represents one of the most significant public finance reforms in Kuwait's history, providing flexible financing tools and establishing the largest legal framework for public debt management with maturities extending up to 50 years and a borrowing ceiling of 30 billion Kuwaiti dinars (approximately $92 billion).

The Ministry has developed a flexible plan enabling confident market entry while focusing on optimal financing costs and diversifying the investor base geographically and institutionally. A key priority is developing the local debt market by establishing a yield curve as a clear market benchmark.

Global Confidence Message

This new law sends a confidence message to global markets that Kuwait adopts disciplined, advanced financial approaches, expected to improve its credit rating, attract diverse investors, and accelerate economic diversification.

The Public Debt Management Committee, established in 2016 and directly reporting to the Finance Minister, includes representatives from the Ministry of Finance, Central Bank of Kuwait, and Kuwait Investment Authority. It approves annual financing strategies and makes recommendations to the Minister.