Kuwait city: Government spending on development ventures by the end of the first quarter of the annual development plan (2025-2026) reached the highest level in five years, compared to corresponding periods of previous schemes. The state expenditures on development reflected the government's increasing focus on executing projects at this level.
According to Kuwait News Agency, development expenditures by the end of the first quarter of the current year rose by 11 percent above the KD 117.9 million (USD 386.5 million) spent in 2020-2021. Total spending by the end of the current year's Q1 amounted to KD 132.4 million (USD 433.4 million), compared to KD 54.5 million (USD 178.6 million) in 2024-2025, KD 22.7 million (USD 74.4 million) in 2023-2024, KD 31.7 million (USD 101.4 million) in 2022-2023, and KD 98.8 million (USD 323.9 million) in 2021-2022.
A report from the Secretariat General of the Supreme Council of Planning and Development showed that the spending proportion on its ventures reached 10 percent, 5.1 percent higher compared to the previous year. The report highlighted that spending on infrastructure construction was the highest among the plan programs, reaching 11 percent by Q1 end, followed by programs for establishing environmentally coherent living regions at 5.5 percent.
The plan included 141 ventures across nine programs, with 124 ongoing projects and 17 new ones. The sixth program, focused on building solid infrastructure, contained the bulk of the projects, with 38 ventures. The annual development scheme, involving 42 government departments, is reviewed annually, with potential amendments based on performance or new initiatives.
The current scheme is based on more specific criteria for selecting development initiatives and specifying legislative requirements for moving development forward. A governance system has been established for each program to ensure results and serve state policies. This aims to improve Kuwait's rating in global indices and position it among the top 35 states by 2035.
Moreover, the capital expenditures in the 2025-2026 fiscal year budget include 69 new projects for ministries, alongside 373 continuing and under-execution ventures. These include the expansion of Umm Al-Haiman station, the construction of the new passenger terminal T-2 at Kuwait International Airport by 2027, and completing the first phase of Mubarak Al-Kabeer Mina (port) in 2028.
The ongoing projects in the 2025-2026 budget cover infrastructure overhauls for developing transportation and ports, aiming to boost the national economy's competitive ability, enhance commerce, and create new jobs. For independent institutions, 18 projects were listed with an earmarked KD 250 million (USD 819.6 million), focusing on developing towns through sustainable urban planning and collaboration with the private sector.
The acting minister of finance emphasized the priority of health, educational, and housing projects, aligning with treaties and memoranda for strategic partnerships. The minister also highlighted financial stability and economic diversification, reducing oil dependency, and involving local and international private sectors in state projects.
Government committees have discussed advancing development projects, improving expenditure efficiency, diversifying income resources, and boosting cooperation among state departments. The cabinet utility commission reviewed procedural developments in vital projects and examined proposals from concerned authorities.
The cabinet commission of economic affairs discussed increasing non-oil proceeds, affirming improved expenditure efficiency, and rationalizing subsidies for sustainability. The commission following up on treaties with China pursued meetings to advance economic development and tackle project obstacles.
During a recent cabinet session, the success of the state policy for economic openness was affirmed, supporting Kuwait as a financial and commercial hub and creating sustainable jobs. Minister Dr. Sabeeh Al-Mukhaizeem presented financial balance program lines, economic and financial reforms, and non-oil revenue growth expectations for 2025-2026.
Kuwait's sovereign rating remains robust with a stable outlook, supported by solid financial and economic bases, including state-held assets and reserves that bolster the national economy.