The Kuwaiti cabinet is studying a proposal to establish a special investment entity to support and implement major projects.
The entity, called Al Kout Investment Company, will have a capital of $163.59 billion. Its mission will be to focus on ‘energy, transportation, infrastructure, smart cities and industrial zones’.
Kuwaiti newspaper Alqabas yesterday quoted informed sources as saying that the finance ministry has completed its study into establishing the company.
It said the move will have a significant impact on the Kuwaiti economy by reducing the financial burden on the state’s budget by up to 30 per cent, while attracting private and foreign investments worth up to $32.72bn).
It will also achieve annual revenues of up to $3.27bn by 2030 and provide more than 50,000 new job opportunities, strengthening Kuwait’s position as one of the regional hub for trade and investment.
The proposed new company will support and implement infrastructure and major local projects, contributing to boosting non-oil revenues and achieving economic and development aspirations.
The company’s initial capital will be provided through government funding worth $163.5bn.
The visual presentation of the company’s establishment demonstrated that investing in infrastructure would bring about a qualitative shift in Kuwait’s development, enhancing its regional and global competitiveness, and supporting economic diversification and reducing dependence on oil through sustainable investments.
The company’s strategy also focuses on strengthening public-private sector partnerships to finance major projects without placing additional burdens on the state’s budget, while achieving sustainable investment returns that support Kuwait Vision 2035.
The company has identified five strategic sectors as priority investment areas. These sectors were selected based on their importance in promoting sustainable economic development and their ability to attract local and foreign investment. These priority investment sectors are:
1- Transportation and Logistics: Development of ports, metro, smart roads and logistics centres.
2- Energy and Utilities: Renewable energy (solar, wind, green hydrogen) and strengthening the electricity and water grid.
3- Smart Cities and Real Estate: Developing special economic zones, smart cities and commercial centres.
4- Tourism and Hospitality: Building tourist islands, luxury hotels and entertainment projects.
5- Manufacturing and industrial zones: Establishing advanced export-oriented manufacturing centres.
Al Kout Investment will rely on a diverse mix of funding sources to ensure the sustainability of its operations, starting with initial government funding and then expanding to include multiple funding sources from the private sector and international institutions.
The project timeline has been specified as 2025-2030.
Moreover, Kuwait will also establish Al Kout Investment Fund, which is expected to be a global player, The fund will work to create long-term value for Kuwait while maintaining global standards.
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