Kuwait Boosts Infrastructure Spending in 2025-2026 Plan
Kuwait's robust economy and strong fiscal reserves have maintained its sovereign credit rating with a stable outlook. The country is investing heavily in infrastructure and development projects, with the 2025-2026 annual plan showing a significant increase in spending and a focus on key sectors.
The 2025-2026 annual plan comprises 141 projects under nine main programs, with 38 projects dedicated to infrastructure development. This represents 11 percent of total spending, indicating Kuwait's commitment to building a solid infrastructure. By the end of the first quarter, development spending reached KD 132.4 million (USD 433.4 million), an 11 percent increase from the same period in 2020-2021.
The government is prioritizing health, education, and housing projects, as well as expanding strategic partnerships. The capital expenditure budget includes 69 new projects and 373 ongoing ventures, such as the expansion of the Umm Al-Haiman wastewater treatment plant and the completion of the new T2 terminal at Kuwait International Airport by 2027. This spending ratio reached 10 percent of total planned allocations, a 5.1 percent increase from last year.
The 2025-2026 development plan involves 42 government entities working together to achieve Kuwait's Vision 2035. With a focus on sustainable development, economic diversification, and reducing oil dependence, Kuwait is committed to becoming one of the world's top 35 nations. Key ministries, including Finance, Planning, Oil, Electricity and Water, Commerce and Industry, Health, and Education, are collaborating to ensure the success of these ambitious projects.
