Investment Opportunities in Kuwait

Kuwait's investment landscape is traditionally associated with the oil and gas industry, which remains the backbone of the country's economy and the main source of government revenue. However, in recent years, the government has been actively pursuing an economic diversification strategy, seeking to reduce dependence on hydrocarbon exports and stimulate private sector development.

For foreign investors, this opens up new prospects for participating in state-supported projects focused on the long-term development of the economy.

Sectors for Investment

Oil and Gas

Kuwait is a major oil supplier and a member of the OPEC consortium. Oil accounts for about 95% of exports and approximately 90% of government revenues. Kuwait holds roughly 7% of the world’s oil reserves and has a current production capacity of about 3.15 million barrels per day.

The country’s oil sector is managed by the Kuwait Petroleum Corporation (KPC), a state-owned company. KPC includes several companies known as “K-companies.” Oil and gas production is mainly carried out by the Kuwait Oil Company (KOC), the largest state-owned oil company in terms of revenue, responsible for oil production, while refining and marketing are handled by the Kuwait National Petroleum Company (KNPC).

KPC has announced its intention to increase oil production to 4 million barrels per day (mbpd) by 2035 and natural gas production to 4 billion cubic feet per day by 2030. Further increases in production will depend on the actual implementation of several exploration and production projects, including the development of heavy oil production facilities with a capacity of 60,000 barrels per day.

In October 2024, KPC spent $410 billion on its long-term energy strategy: $300 billion for traditional energy projects and $110 billion for energy transition projects.

Clean Energy

In March 2024, the Ministry of Electricity, Water and Renewable Energy (MEWRE) announced Kuwait’s renewable energy strategy for 2030–2050. The new strategy includes 12 megaprojects aimed at commissioning 22 gigawatts of renewable energy capacity by 2030 and increasing its share from 15% to 30% by 2030. Kuwait has set a national goal to achieve zero carbon emissions in the oil and gas sector by 2050 (and in all other sectors by 2060). Large-scale clean energy projects using low-carbon technologies are currently being developed, ranging from solar and wind energy to green hydrogen and electric vehicles.

The Dibdibah Power and Al‑Shagaya Renewable Energy project — phase three — is an integrated project for electricity generation using photovoltaic (PV) and concentrated solar power (CSP) plants. In August 2024, the Ministry of Electricity and Renewable Energy (MEWRE), through the Kuwait Authority for Partnership Projects (KAPP), prequalified six consortia that may apply for a contract to develop the first phase of the project, featuring a 1,100 MW solar photovoltaic plant. It is planned that subsequent phases will include: 200 MW for phase two, 1,500 MW for phase three, and 4,500 MW for phase four.

Kuwait’s energy transition strategy defines a roadmap for future growth opportunities in the energy sector, such as: 1) carbon capture, utilization and storage (CCUS) to offset emissions; 2) biofuels to meet global market demand, with a focus on second-generation biofuels; 3) petrochemical product processing, focusing on converting plastic waste into functional products.

The “Clean Fuel Project” megaproject, under which the Mina Abdullah and Mina Al‑Ahmadi refining complexes were modernized and expanded, was completed in November 2021, and its total current production capacity is 800,000 barrels per day. In 2015, KNPC signed contracts for four work packages for the construction of the country’s fourth refinery, which will produce low-sulfur fuel for the country’s power plants. The $15 billion Al‑Zour Refinery was established under the Kuwait Integrated Petrochemical Industries Company and fully commissioned in 2023. The complex is expected to integrate the Al‑Zour Refinery with the planned $10 billion petrochemical complex (project cost: $10 billion) and the $4 billion gas transmission terminal, whose construction was completed in November 2021.

Foreign oil companies, manufacturers and suppliers of oilfield equipment hold strong positions in the Kuwaiti market and enjoy a very favourable attitude.

Kuwait is an important player in the global oil refining market. Currently, the country operates three domestic refineries (Mina Al‑Ahmadi, Mina Abdullah and Al‑Zour) and also has stakes in three international refineries in Italy, Oman and Vietnam.

Opportunities

Although Kuwait does not allow private investment in the oil production sector, the oil and gas sector will remain a leading sector for foreign companies.

The best prospects in this sector include consulting services; front-end engineering design (FEED); project management consulting (PMC); engineering, procurement and construction (EPC) services; refining technologies; environmental consulting; control and instrumentation systems; and secondary processing systems.

Demand for drilling services and equipment is expected to be high due to Kuwait’s goal to increase its oil and gas production capacity over the next ten years through the development of heavy oil fields and offshore production. The construction of a pipeline and other petrochemical production facilities is also planned.

Digitalization of Kuwait’s Oil Fields

The Kuwait Oil Company, a state-owned company, has announced its five-year digital transformation strategy aimed at introducing the latest technologies into its operations. KOC has allocated a budget of $800 million for digital transformation. The Big Data Galaxy program includes 11 subprojects to develop IT infrastructure and digitize data and operations to improve predictive maintenance efficiency, enhance exploration and increase oil production.

Foreign companies specializing in advanced oil production monitoring solutions — including cloud platforms, real-time monitoring, workflow optimization and cybersecurity capabilities — have market potential, provided their technology has proven effective and the company is ready to undergo prequalification. As a preliminary step for a larger project, the Kuwait Oil Company may ask selected vendors to conduct a small-scale pilot project to verify the technology’s viability under Kuwait’s harsh conditions.

In addition to prequalification, foreign companies wishing to do business in the oil sector are required to appoint a local partner. The trade service recommends finding a local partner with extensive connections and significant experience working with state-owned companies.

Prequalification Process

Working with state oil companies requires prequalification using approved contractors, manufacturers and service providers. Having a local agent during the prequalification stage is not mandatory; however, foreign companies should have a local partner to participate in project tenders. Partnerships can take any form of business organization. Both joint ventures and subcontracting are very common in the oil sector.

In April 2024, KPC launched its own tender portal to streamline the processes for registration, qualification and submission of tender applications.

Automobiles and Auto Parts

Kuwait is a major importer of new foreign cars. Due to the low cost of fuel and local preferences, there is high demand for large vehicles such as trucks and SUVs. Kuwait imports cars mainly from Japan, the USA, China, the European Union and the UK.

SUVs dominate the market in the country, and Kuwait is also an excellent market for luxury and vintage cars. In addition, more and more affordable Chinese brands are entering the market.

The auto parts and accessories market is growing annually in Kuwait and other Gulf countries.

Kuwait’s large used car market increases the demand for spare parts and maintenance services. The total value of the parts market is estimated at over $156 million.

Electric Vehicle Market

The electric vehicle (EV) market in Kuwait is still in its early stages but is projected to grow significantly. The government has taken measures to support EVs, ensuring that by the end of this year each gas station will have at least one fast-charging device, and encouraging landlords to allow the installation of home wall chargers. In March 2024, Kuwait’s Ministry of Energy and Environment announced a renewable energy strategy that, for the first time, allows Kuwaiti citizens to install solar panels on rooftops, thereby stimulating the purchase of electric vehicles.

Kuwait has reached an important milestone in EV readiness, ranking third in the Gulf Cooperation Council (GCC) region and fourteenth globally (UAE – 7th, Qatar – 9th, Saudi Arabia – 21st) according to the 2023 Global Electric Mobility Readiness Index. Kuwait is transitioning to sustainable transport and has set a national goal to achieve zero carbon emissions in the oil and gas sector by 2050 (and in all other sectors by 2060). In August 2021, the Kuwait Ports Authority approved a proposal to build the first EV city in the Middle East, which will provide all port and logistics services to major global players, including EV manufacturers. In October 2022, the Ministry of Public Works and the Ministry of Electricity, Water and Renewable Energy (MEWE) approved final regulations for electric vehicle chargers. The regulations include definitions and technical specifications for EV chargers and will remain in effect until December 2030.

Opportunities

Foreign companies with specialized capabilities can play a key role in developing Kuwait’s EV market; demand is growing for:

• High-speed electric vehicle charging stations
• Battery electric vehicles (BEV)
• Autonomous electric vehicles
• Plug-in hybrid electric vehicles (PHEV)
• Hybrid electric vehicles (HEV)
• Fuel cell electric vehicles (FCEV).

Infrastructure

Kuwait’s development plan (2020–2025) focuses on economic reforms and the implementation of numerous megaprojects, including several major infrastructure projects valued at $124 billion. It includes a number of infrastructure upgrades, such as a new airport terminal worth $4 billion; the development of the Mubarak Al‑Kabeer Port on Bubiyan Island; and a petrochemical complex. The government has nearly completed healthcare projects worth over $4 billion to increase bed capacity across the country. It is projected that the Ministry of Health’s operating budget will reach approximately $18 billion by 2030.

Growing demand for public housing is expected to drive long-term growth in residential construction, with the Public Housing and Social Security Authority announcing plans to build 250,000 housing units over the next 10 years. The government also plans to use a public–private partnership model for public housing construction, including 11,000 units under the Sabah Al‑Ahmad project, which, upon completion, will provide housing for 100,000 people. The South Al‑Mutlaa City project, currently in the initial infrastructure development stage, will be able to house 28,000 families.

Opportunities

Local construction companies are applying foreign construction technologies and methods and using foreign construction materials and equipment for private projects, ranging from resorts to hospitals. Engineering and consulting companies also have good prospects for entering this market. Construction materials and labour are procured cheaply at the local or regional level.

Healthcare

Under Kuwait’s $104 billion National Development Plan, large-scale works to modernize the country’s healthcare infrastructure and institutions have begun and are ongoing. In Kuwait, non-communicable diseases (NCDs) are a serious concern, as high rates of obesity, diabetes and cancer among the population continue to put pressure on the healthcare system. This trend is expected to increase the need for high-quality specialized medical services in the coming years.

The public healthcare sector in Kuwait accounts for more than 80% of the country’s healthcare spending. Currently, the Kuwait Ministry of Health is the owner, operator, regulator and financier of the vast majority of medical services provided, medicines purchased and medical equipment acquired in the country. The government manages 28 general and specialized hospitals. The private sector is expected to grow moderately in the coming years, with private companies estimated to account for 15–20% of healthcare spending.

Kuwait aims to create world-class medical facilities and improve the quality of care at centers such as the Kuwait Cancer Center, Kuwait Chest Diseases Hospital, Kuwait Radiology Center, Ibn Sina Eye Center and Dasman Diabetes Research Center.

The country has a well-developed primary healthcare network comprising more than 100 clinics located throughout Kuwait.

According to the Ministry of Health, the private sector will play an important role in the overall development of the medical industry. The private healthcare market is expected to grow by 15–20% in the coming years. Currently, 16 private hospitals (with a total capacity of about 1,200 beds) provide medical services in Kuwait. Several new private hospitals are expected to open in the next few years, adding another 1,800 beds. Although the government provides free medical services, patients are willing to pay more for private treatment to reduce waiting times and treatment periods. Private hospitals also serve a significant portion of the Kuwaiti population living abroad. In some areas, such as obstetrics and gynecology, local patients pay more for the high-quality services offered by private hospitals.

Reforms are underway in the healthcare sector, including expanding public–private partnerships and giving the private sector a greater role in providing medical services. Under the Health Assurance Hospitals Company (DHAMAN) initiative, five medical clinics based on public–private partnerships have already been established. Currently, Kuwait sends thousands of patients and their families abroad for treatment each year, which is very costly. The Kuwaiti government aims to reduce funding for overseas treatment by expanding and building new hospitals. Over the next five years, the government plans to increase bed capacity by 40%.

Opportunities

There are broad opportunities for foreign companies in healthcare-focused technologies and services, including medical equipment, hospital supplies, products and services, as well as specialized digital applications. Quality control has been tightened. It is estimated that around 15,000 medical professionals may be needed in the public sector alone in the coming years.

In 2022, the Ministry of Health created a new position — Assistant Undersecretary for Digital Health. The goal is to prepare Kuwait for the digitization of many healthcare systems and workflows. Most medical assistance coordination and billing in public hospitals is done on paper, leading to inaccuracies and delays in data processing. Foreign companies can support these digitization efforts. The Ministry is in the process of procuring electronic health records for most general and specialized public hospitals.

Security and Protection

Kuwait has a low crime rate, a stable political environment and strong government institutions. While Kuwait itself is safe, it shares a land border with Iraq and is located near several other high-risk countries, such as Iran and Syria.

Therefore, Kuwait plans to invest significant resources in security equipment and technologies over the next few years. Given Kuwait’s proximity to Iraq and the history of wars in the Persian Gulf, defense and security forces will seek to acquire surveillance equipment, perimeter security and control systems, checkpoint equipment (fences, barriers, cameras, access points), explosive and ordnance disposal equipment, as well as smuggling detection systems, including scanning systems, and security planning consulting services.

Several projects are currently under consideration, including the installation of additional video surveillance systems at transport infrastructure points, the provision of geospatial connectivity, the creation of maritime networks, and the installation of sensors to minimize security threats to vessels and facilities, including refineries, power plants, production facilities and loading platforms, including in ports. The projects also include the hardware and software infrastructure needed to support a fully integrated command, control, communications and computers (C4) and intelligence, surveillance and reconnaissance (ISR) system. Additional opportunities are opening up at Kuwait International Airport, where security procedures are being modernized and a new terminal is being built, with completion expected by early 2027.

Opportunities

Tenders are expected to be announced for the supply of video surveillance systems for internal security, the modernization of airport security systems, the modernization of security systems for oil and refining infrastructure, border control and surveillance. Additional projects will include system integration, portable monitoring devices and long-range detection equipment.

Information and Communication Technologies

Telecommunications services in Kuwait are developing rapidly: there are five internet service providers (ISPs), three mobile operators, and many sub-providers and authorized distributors operating across the country. In recent years, vertical integration has been observed in the market: several telecom companies have acquired ISPs to provide comprehensive mobile and internet services to both commercial and private customers.

Kuwait’s information and communication technology (ICT) market was valued at $22.48 billion in 2023 and is expected to reach $39.83 billion over the next five years. Kuwait’s telecommunications industry is well developed and includes 5G and 6G services, fiber-optic cables, satellite communications and nationwide Wi‑Fi access. 99.4% of the population has home internet access, and the 5G network covers about 97% of the population.

The ICT sector is regulated by the Communications and Information Technology Regulatory Authority (CITRA). CITRA manages and enforces Kuwait’s data protection regulations, including the requirement to store certain sensitive data within Kuwait. CITRA works closely with the Central Agency for Information Technology (CAIT) to implement e-government and public technology projects. CAIT aims to create a national data center and digitize more than 90% of public services over the next five years.

In 2022, the Kuwaiti government established the National Cybersecurity Center (NCSC), the regulatory body for all cybersecurity matters. NCSC works closely with CAIT to oversee government cybersecurity and implement initiatives, including the “Zero Trust” program in partnership with Microsoft.

Under the “Vision 2035” program, the government sets the following IT goals: creating “smart cities”; increasing productivity in key sectors (including oil and gas, information technology, financial services, healthcare and transport); and optimizing bureaucratic processes (especially in public procurement).

Cybersecurity

In 2022, the Kuwaiti government created the National Cybersecurity Center to protect government networks and critical infrastructure assets. Priority areas include infrastructure protection, comprehensive risk management, network equipment and other software to ensure information security.

The Center will collaborate with government agencies and the private sector to monitor Kuwait’s networks for cybersecurity threats, collect and disseminate threat information, and support the national cyber threat response strategy. Other functions will include preparing a national cybersecurity assessment and threat analysis.

Cloud Computing

Cloud computing is a fast-growing subsector in Kuwait’s technology market. Cloud storage providers must obtain a license from CITRA to operate and deliver services in Kuwait. To obtain a license, the provider must prove that sensitive data does not leave the country. Some providers have chosen to open a local data center, while others have set up edge nodes at the ends of the national network. In 2023, Kuwait announced a strategic partnership with Google as part of a government-wide digital transformation program in cloud computing and data storage. The goal is to modernize public services, migrate national data to the cloud and simplify collaboration and service delivery. The plan also includes creating a national training program to increase the number of government employees with digital skills.

On March 6, 2025, Microsoft Kuwait entered into a strategic partnership agreement with the Kuwaiti government, represented by the Central Agency for Information Technology (CAIT) and the Communications and Information Technology Regulatory Authority (CITRA), to accelerate digital transformation efforts in line with Kuwait’s policy.

Financial Technology

Kuwait’s financial industry is undergoing rapid transformation. In 2022, the Central Bank of Kuwait enacted the digital banking law. Banks are actively investing in their IT infrastructure, and their strategic plans include:

• Transitioning to digital banking services
• Collaborating with fintech companies to improve digital payments, e-loans and data analytics
• Developing smartphone apps for banking operations
• Enhancing internet banking services

Kuwait’s e-commerce market is expanding rapidly thanks to high levels of internet penetration, mobile connectivity and banking services. Over the past five years, online payments (Knet, Apple Pay and Google Pay) have grown nine times faster than point-of-sale transactions.

The telecom sector is expected to grow significantly over the next 10 years. Foreign companies interested in exploring opportunities in this market should identify suitable local partners. The procurement process for telecom operators and service providers is carried out through tenders, and international companies need a local presence to participate and submit bids.

Manufacturing

Kuwait is focusing on diversifying its economy by developing the manufacturing sector. The country aims to reduce its dependence on imports by promoting local production and industrial development, especially in non-oil sectors.

Petrochemical Manufacturing

Given its vast oil and gas reserves, Kuwait seeks to expand its processing industry, particularly in petrochemicals, plastics and fertilizers. Investors can explore opportunities to establish manufacturing facilities to meet the needs of both domestic and international markets.

Food and Beverages

Demand for locally produced food and beverages is growing, driven by population growth and changing consumer preferences. Investments in food processing, packaging and distribution offer significant opportunities.

Construction Materials

Amid the booming construction sector, there is high demand for locally produced construction materials such as cement, steel and glass. Investors can benefit from this demand by setting up production units for construction products.

Pharmaceutical Manufacturing

Kuwait aims to develop its pharmaceutical manufacturing capabilities to reduce reliance on imports. This opens opportunities for foreign investors, particularly in generic drugs and medical devices.

The foreign manufacturing sector, especially in areas such as pharmaceuticals, chemicals and food, offers broad opportunities for cooperation with Kuwait. Foreign companies can provide expertise, transfer technology and establish joint ventures in manufacturing, and Kuwait’s strategic location opens the way to access Middle Eastern and European markets.

Logistics Services

Kuwait’s strategic location at the crossroads of Europe, Asia and Africa makes it a vital logistics hub in the region. The country is focused on developing world-class logistics infrastructure to support trade and economic diversification.

Free Economic Zones and Ports

Investments in free economic zones, such as Mubarak Al‑Kabeer Port on Bubiyan Island and the Kuwait Free Economic Zone, offer opportunities for logistics companies, shipping firms and investors in warehousing and transportation.

E‑Commerce Logistics

As e‑commerce grows in the region, demand for efficient logistics services is rising. This opens investment opportunities in last-mile delivery, warehousing and cold chain logistics.

Air Cargo

The expansion of Kuwait International Airport and the development of air cargo facilities create opportunities for investment in air logistics, freight forwarding and supply chain management.

Foreign logistics companies can collaborate with Kuwaiti firms to develop supply chain management solutions, especially in sectors such as pharmaceuticals, agriculture and textiles. With the growth of e‑commerce, logistics companies have huge opportunities to simplify trade procedures.