With a projected KD9.8bn deficit in the 2026/27 budget, Kuwait is pushing fiscal and legal reforms by decree, including higher non-oil revenue, a government sukuk law and a new arbitration law. Large port, airport and wastewater projects and a digital government drive centred on the Sahel app continue.
What a Korean company can do now
Government · leader
Amir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah / Prime Minister Sheikh Ahmad Al-Abdullah Al-Ahmad Al-Sabah
Key national agenda
- New Kuwait Vision 2035: diversification and non-oil growth
- Fiscal reform and higher non-oil revenue
- Debt legislation including government sukuk
- New arbitration law for government contract disputes
- Execution of major infrastructure projects
- Digital government (Sahel platform) and AI in education
Government programmes
FY2026/27 state budgetSpending KD26.1bn
Revenue KD16.3bn, spending KD26.1bn, deficit KD9.8bn; oil at $57
Capital projects (Mubarak Al-Kabeer Port, Airport T2, wastewater plants, etc.)Capex KD3.1bn
Major infrastructure in the 2026/27 budget, including Umm Al-Hayman and North Kabd wastewater plants
Government sukuk decree-law
Approved by Cabinet on Sep 1, 2026 and referred to the Amir
New Arbitration Law
Includes rules for government-contract arbitration; approved by Cabinet on Sep 16, 2026 and referred to the Amir
Cloud-based digital government and Sahel unified e-services
Cloud, data centre and security cooperation with Google Cloud and Microsoft; Sahel links agencies electronically
Business opportunities
AI chatbot and document-processing automation for public services
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AI learning assistant and teacher workload automation for schools
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Open this week
PMO consulting for schedule and cost control on public infrastructure
With a large deficit, efficient execution of capex projects matters more.
Ministry of Public Works, Ministry of Communications, Korean contractor sites
Non-oil revenue and fiscal data analytics advisory
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Korean support schemes
- South Saad Al-Abdullah Smart City · LH / Ministry of Land, Infrastructure and Transport — A Korean-model smart new town developed with Kuwait's housing authority that offers an entry route for Korean SMEs (2022 material).
- Korea-Kuwait construction cooperation and order support · Ministry of Land, Infrastructure and Transport — Government-level support for airport operations, Al-Zour petrochemicals, Abdullah new town and road O&M (2023 material).
Official notices
Government of Kuwait (Cabinet / Ministry of Commerce and Industry)
- 2026-09-16 Cabinet approves draft Arbitration Law; reviews Sahel e-service figures for Jan-Aug
- 2026-09-01 Cabinet approves draft government sukuk decree-law; Q1 report shows non-oil revenue growth
- 2026-09-14 Commerce Minister resigns; Minister of State Abdulaziz Al-Marzouq named acting
- 2026 MOCI Ministerial Decision No. 30 waives extra costs to keep supplies flowing and prices stable
Disaster · conflict · epidemic
Watch 2026-11-07
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Iran war regional tension; clashes near Bubiyan Island in May
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Earth & space
Sources
- Kuwait Times - Cabinet OKs draft arbitration law, reviews Sahel services
- Kuwait Times - Financial reforms chart Kuwait's path
- Arab News - Kuwait forecasts 54.7% rise in fiscal deficit
- Middle East Construction News - Kuwait advances major projects in 2026-2027 budget
- Kuwait Times - Cabinet supports AI-driven education, digital government
