KUWAIT: Kuwait has introduced a new financial framework with the issuance of law no. 60 of 2025 on liquidity and public debt, setting a maximum debt ceiling of KD 30 billion (or its equivalent in major convertible foreign currencies). The law also allows the issuance of financial instruments with maturities of up to 50 years, establishing a long-term legal framework for public borrowing. The law will remain in effect for 50 years from its enactment, providing a stable regulatory environment for managing public debt.

Minister of Finance and Minister of State for Economic Affairs and Investment Noura Al-Fassam stated that this law grants Kuwait greater financial flexibility by enabling access to both local and global financial markets. “This strategic approach ensures alignment with global economic developments and sustains the country’s financial stability,” she said. She added that the law is part of the government’s broader efforts to enhance financial stability and accelerate economic development in line with the 2035 New Kuwait vision. “This marks a crucial step in ongoing financial and economic reforms aimed at building a more diversified and sustainable economy that benefits both the state and its citizens,” Al-Fassam noted.

Director of Public Debt Management at the Ministry of Finance Faisal Al-Muzaini outlined the key objectives of the new law, emphasizing that it provides Kuwait with access to a variety of financial instruments through local and international markets. This allows the government to secure funding in Kuwaiti dinars or major foreign currencies, offering greater flexibility in managing public debt and liquidity.

He explained that the law also aims to develop Kuwait’s financial markets by establishing a sovereign yield curve, which will enhance the attractiveness of the country’s financial sector. This, in turn, will create a benchmark for banking and corporate debt issuances, improving financing structures and reducing borrowing costs.

Al-Muzaini highlighted that the new law will contribute to financing major development projects, including infrastructure and strategic initiatives, which will accelerate economic growth. He added that it will also stimulate the local economy by increasing investor confidence, attracting foreign investment, and fostering economic activity.

Another key aspect of the law is its potential to improve Kuwait’s sovereign credit rating, allowing the country to secure loans under more favorable conditions. Additionally, the law aims to preserve the liquidity of sovereign reserves, ensuring financial stability and enabling the government to meet its financial obligations in various economic conditions.

Al-Muzaini emphasized that this law comes at a time of rapid changes in global financial markets, where flexible access to funding is crucial for economic stability. He also highlighted that developing Kuwait’s debt markets enhances its competitiveness as a regional financial hub. “This new framework provides the government with innovative financial tools to manage public finances efficiently while maintaining a sustainable approach to balancing development needs with long-term fiscal stability,” he concluded. – KUNA