The State of Kuwait is currently undergoing a fundamental transformation in the implementation of major development projects, driven by an integrated government approach that links economic diplomacy—particularly with strategic partners—to a comprehensive system of internal reforms. This shift reflects a clear vision to enhance efficiency, promote transparency, and accelerate progress within strategic plans aimed at diversifying income sources, developing infrastructure, and achieving sustainable development in line with the aspirations of the "New Kuwait 2035" vision.

In this context, a series of serious government steps have emerged, including the connection between recent legislative and regulatory reforms, the expansion of strategic development partnerships, efforts to accelerate major projects, and encouraging economic indicators.

Embodying this growing momentum, the Ministerial Committee for Following Up on Agreements Signed with China held 22 meetings, identifying four main tracks to drive economic development: accelerating the pace of coordination and consultation with China, intensifying technical visits, overcoming obstacles to projects, and setting plans and priorities while supporting ministries and government agencies responsible for implementing memoranda of understanding.

The government's diligent efforts have achieved notable progress in the implementation of the strategic Mubarak Al Kabeer Port project, starting from the approval and acceptance of the nomination submitted by China based on the project's memorandum of understanding early this year, culminating in the signing of the contract to commence project work last March.

In the field of environmental infrastructure, the government is studying a detailed report prepared by a Chinese delegation, which includes an action plan for executive measures regarding bilateral cooperation between the two countries in land reclamation. Additionally, it discusses details of the plan to implement projects for developing and rehabilitating ecosystems, expanding afforestation programs, and protecting the environment while combating desertification.

His Highness Sheikh Ahmed Abdullah Al-Ahmad Al-Sabah, the Prime Minister, emphasized that the achieved positive indicators of economic growth and the attraction of foreign investments confirm steady progress on the right path and the success of the Ministerial Committee's efforts to achieve the goals of the comprehensive plan across all development tracks, in realization of the visions and aspirations of His Highness the Amir of the country, Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah, may God protect and preserve him.

In parallel, Kuwait recently crowned its efforts to enhance international partnerships by elevating the historical relations between Kuwait and Japan to the level of a comprehensive strategic partnership—a step that opens the door to deepening the developmental and economic returns from the partnership between the two countries. Accordingly, the two countries intend to solidify their comprehensive strategic partnership in all economic, commercial, investment, renewable energy, petrochemicals, and other fields, which represent a cornerstone in enhancing energy security and stabilizing its costs.

The second and third phases of the Al-Zour North Power Plant project, whose implementation commitment document was signed on the tenth of this August, is one of the largest electricity projects in the country. It aims to meet the growing demand for electricity and water in the state and provide the necessary infrastructure for implementing projects listed in the development plan. The project encourages private sector participation and leverages its expertise to reduce the costs of constructing and operating power plants, accelerate progress, and achieve optimal use of natural resources. It also reflects the government's direction to involve the private sector in developing infrastructure, contributing to cost reduction, accelerated progress, optimal resource utilization, and attracting foreign investments.

As part of the ongoing evaluation of the executive status of projects, the government is working to inventory all projects and contracts across various ministries and entities, preparing detailed lists that include ongoing construction projects and their associated contracts, as well as future projects, to monitor implementation mechanisms on the ground. This step aims to provide an accurate database that enables decision-makers to understand the reality of performance, enhance preemptive coordination between entities, and prevent overlapping jurisdictions or duplicate offerings.

The government follows a unified methodology for including projects and initiatives in its strategic plans, which includes phased targets according to timelines, along with measurable key performance indicators, while identifying relevant entities that must be coordinated with. Adopting new financing initiatives to support and implement major projects, especially in energy, transportation, infrastructure, smart cities, and industrial zones, is a fundamental pillar of the government's strategy.

The government seeks to reduce the financial burden on the general budget by approximately 30%, attract private and foreign investments worth up to 10 billion dinars, achieve annual revenues of up to 1 billion dinars by 2030, and provide more than 50,000 new job opportunities.

The Council of Ministers has successfully implemented a package of legislative and regulatory reforms to support economic reforms in the country, including the real estate brokerage system, the smart license project, amendments to the companies' law provisions, the tax project on multinational entity groups, and the launch of the first executive steps of the real estate developer system.

Kuwait also recently launched the second part of the third phase of the capital market system development program, which is one of the most prominent strategic projects of the Capital Markets Authority and is included in the state's development plan. It contributes to preparing the regulatory and infrastructural framework of the Authority to support meeting the requirements for upgrading to the advanced emerging markets category and enhances the confidence of local and international investors in the Kuwaiti market.

These integrated efforts are reflected in the forecasts of international institutions. The World Bank expects Kuwait's economic growth to recover significantly, reaching 2.2% in 2025, driven by the gradual elimination of production ceilings approved by OPEC+ and expansion in non-oil sectors supported by credit growth and large infrastructure projects. In a recent report issued by its regional office in Riyadh on Gulf countries, titled "Smart Spending and Stronger Economic Outcomes: Public Finance Policies for the Prosperity of Gulf Countries," the World Bank expected economic growth to remain stable at 2.7% during the period (2026–2027), noting that long-term economic prospects depend on the successful implementation of structural reforms and efforts to diversify economic activity.

While Standard & Poor's (S&P) ratings agency expected in a report that economic growth in Kuwait would continue thanks to its reforms, EFG Hermes stated in its report that decision-making in Kuwait has improved significantly, noting that the focus is now on government projects and the approval of key laws. Hermes expected this environment to enhance credit growth in the banking sector for several years and raised its growth expectations for the entire banking sector starting from 2026.

The annual development plan for 2025/2026, adopted by Kuwait last March, includes an unprecedented number of construction projects: 69 projects within the budgets of ministries and government departments, 21 projects for affiliated agencies, and 34 projects for independent institutions.

Kuwait signed several memoranda of understanding with China in 2023, including the implementation of the Mubarak Al Kabeer Port project and cooperation in the fields of electric energy, housing development, sewage treatment, free zones, and economic zones, in addition to developing renewable energy projects and cooperating on a green, low-carbon waste recycling system.