Latest news with #FaisalAl-Muzaini
Zawya
20-05-2025
- Business
- Zawya
Kuwait plans to borrow to fund $7.6bln projects
Kuwait has decided to borrow between $1020 billion this year to fund projects with a value of around $7.6 billion, an official has said. Faisal Al-Muzaini, Director of the Public Debt Management Department at the Ministry of Finance, said the debt law which was approved by parliament in March allows the Ministry to borrow up to 30 billion Kuwaiti dinars ($99 billion) for a period of 50 years. The debt expected during the 2025-2026 fiscal year ranges between KWD 3 billion and 6 billion ($10-20 billion), he said at a local debt forum on Monday. 'The time is right to use this tool to get the needed liquidity since the debt-to GDP ratio in Kuwait is only around 2.9 percent…this is a very low level compared with other countries,' he said in comments published by local newspapers on Tuesday. He said no date has yet been set for borrowing in the current fiscal year but that the Ministry is now in the final stage of a borrowing plan. (Writing by Nadim Kawach; Editing by Anoop Menon) (
Arab News
27-03-2025
- Business
- Arab News
Kuwait passes borrowing law to rejoin global debt markets after 8 years
RIYADH: Kuwait is set to return to international debt markets after an eight-year absence, following the approval of a long-awaited public borrowing law aimed at addressing fiscal pressures and financing infrastructure projects. According to the Ministry of Finance, the law allows the government to issue up to 30 billion Kuwaiti dinars ($98 billion) in debt instruments, either in local or major foreign currencies, with maturities of up to 50 years — the longest-term legal framework the country has ever established for managing public debt. Since its debt law expired in 2017, Kuwait has been unable to issue sovereign bonds. Fitch Ratings noted earlier this month that passing the financing and liquidity law will boost fiscal flexibility, although the government has so far met its financing needs through substantial assets. Finance Minister and Minister of State for Economic Affairs and Investment, Noura Suleiman Salem Al-Fassam, said the law marks a strategic shift that will enhance Kuwait's ability to meet financial obligations and support long-term growth. 'This law gives Kuwait greater financial flexibility by providing the option to access both local and global financial markets to enhance liquidity management. This law supports government efforts to strengthen financial stability and drive economic development in line with Kuwait Vision 2035,' she added. The law is expected to stabilize liquidity, reduce borrowing costs, and strengthen Kuwait's debt management strategy. Faisal Al-Muzaini, director of public debt at the Ministry of Finance, said it would introduce multiple financial instruments, allowing the state to secure financing through bonds, sukuk, or other market tools. 'Developing the local debt markets enhances Kuwait's competitiveness as a regional financial center and provides the government with new financial tools to manage public finances efficiently,' Al-Muzaini added. The law addresses a long-standing challenge in financing major infrastructure and development projects. It is also expected to stimulate liquidity and encourage greater private sector participation in financing activities. The ministry emphasized that this legislative step underscores Kuwait's commitment to sustainable fiscal policy, balancing development financing with debt sustainability. The government also expects the law to improve Kuwait's sovereign credit profile and enhance financial stability by ensuring liquidity under varying economic conditions. Kuwait's budget for the next fiscal year, which runs from April 1, 2025, to March 31, 2026, projects a $22.44 billion deficit, with $59.10 billion in revenue and $79.54 billion in expenditure.
