KuwaitChapters
Kuwait represents an attractive market within the Gulf region due to its financial strength, geographic positioning, and state-led economic transformation agenda. Backed by substantial hydrocarbon reserves, the country benefits from long-term fiscal stability and one of the world’s largest sovereign wealth funds, managed by the Kuwait Investment Authority. Ongoing investments in ports, transport infrastructure, and connectivity aim to position the country as a regional trade and distribution hub.
From a regulatory standpoint, Kuwait has implemented reforms to attract foreign direct investment through the Kuwait Direct Investment Promotion Authority (KDIPA), which allows up to 100% foreign ownership in approved sectors and offers tax incentives and customs exemptions for strategic projects. These measures are aligned with Kuwait Vision 2035, the national development plan designed to diversify the economy beyond oil by promoting growth in financial services, logistics, digital technologies, healthcare, renewable energy, and advanced manufacturing.
The domestic market, while relatively small in population, benefits from high purchasing power and a stable currency environment. The Kuwaiti dinar remains one of the strongest globally, and the financial system is overseen by a well-regulated central banking framework. This creates a predictable operating environment compared to many emerging markets.
Opportunities are particularly strong in infrastructure development, defence and security technologies, digital transformation, energy transition initiatives, and high-value consumer and professional services.
Key indicators
- Area
- 17,818 km2
- Population
- 5,102,773 (Jan. 2026 est.)
- Government type
- constitutional monarchy (emirate)
- Languages
- Arabic (official), English widely spoken
- GDP
- $160 billion (2015 est.)
- Growth rate
- 2.6% (2025 est.)
- HDI
- 64
- Capital
- Kuwait
Macroeconomic indicators
Real GDP is projected to recover in 2026, with oil sector growth reaching 2.9 percent as OPEC+ production cuts are gradually unwound. Non-oil activity is forecast to expand by 2 percent, underpinned by a rebound in real credit growth and large-scale infrastructure projects such as the Northern Special Economic Zone. Over the medium to long term, however, sustaining higher and more inclusive growth will hinge on advancing structural reforms to strengthen the business climate, attract private investment, and diversify the economy away from hydrocarbons.
This is supported by large infrastructure projects such as Mubarak Al-Kabeer Port and the Silk City initiative, which help cushion the downturn, create jobs, and attract investment
Source: The World Bank
IMF Statistics:
| Subject descriptor | 2023 | 2024 | 2025 | 2026 | 2027 |
|---|---|---|---|---|---|
|
All Items, Consumer price index (CPI), Period average, percent change Percent (Units) |
3.642 |
2.899 |
2.184 |
2.23 |
2.143 |
|
Current account balance (credit less debit), Percent of GDP Percent (Units) |
31.082 |
29.147 |
26.53 |
24.426 |
22.918 |
|
Current account balance (credit less debit), US dollar US dollar (Billions) |
51.409 |
46.7 |
41.776 |
39.789 |
38.771 |
|
Gross domestic product (GDP), Constant prices, Percent change Percent (Units) |
-1.667 |
-2.56 |
2.574 |
3.927 |
2.306 |
|
Gross domestic product (GDP), Current prices, Per capita, US dollar US dollar (Units) |
33663.122 |
31971.468 |
30805.156 |
31241.854 |
31809.078 |
|
Gross domestic product (GDP), Current prices, US dollar US dollar (Billions) |
165.396 |
160.226 |
157.469 |
162.895 |
169.17 |
Estimates
Source: IMF Statistics - Kuwait
Relationships with Luxembourg
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
None
Air Services agreement
None
Further information
Foreign Trade
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact Point in Kuwait
Luxembourg is represented by Ambassade Royale des Pays-Bas à Koweït City
Competent post for consular affairs Ambassade du Royaume de Belgique à Koweït City
Source: Ministry of Foreign Affairs of Luxembourg
Embassy of the Grand Duchy of Luxembourg
Chargée d’Affaires a.i.: Mrs. Marie-Anne MARX
Nation Tower Residences
Corniche Road
Appt. 6201, 62nd Floor
Abu Dhabi United Arab Emirates
Tel.: (+971) 2 491 24 46
Emergency number: (+971) 50 613 0248
Fax: (+971) 2 491 22 89
E-Mail: abudhabi.amb@mae.etat.lu
Website: abudhabi.mae.lu
Luxembourg Trade and Investment Office
Mrs. Marie-Anne MARX
Nation Tower Residences - Appt.6201, 62nd Floor Corniche Road
P.O. Box No 44909
Abu Dhabi - UAE
Tel: (+971) 2 491 2446
Email: ltio.abudhabi@mae.etat.lu
Website: abudhabi.mae.lu
Country risk as defined by Office du Ducroire for Kuwait
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Link: Ducroire Office - Country Risk for Kuwait