Latest news with #PublicDebtLaw
Arab Times
21-05-2025
- Business
- Arab Times
Kuwait pushes diversification, private sector growth
KUWAIT CITY, May 21: Minister of Commerce and Industry Khalifa Al-Ajeel said the government is working hard to implement ambitious economic policies aimed at restructuring the national economy, achieving diversification, facilitating the business environment, expanding participation, and raising the efficiency of the State's financial management. Al-Ajeel made the statement at the opening of the New Kuwait Economic Strategy 2025 Conference the Kuwait Direct Investment Promotion Authority (KDIPA) organized Wednesday in cooperation with The Business Year Group. KDIPA Director General Sheikh Dr. Meshaal Jaber Al-Ahmad Al-Sabah attended the event, with the participation of a group of economic leaders in and outside Kuwait. According to Al-Ajeel, the government recently implemented a set of laws in light of these economic policies, such as the Public Debt Law, which aims to rationalize financing tools and support the financial sustainability of the State; as well as the Real Estate Developer Law, which will propel the real estate, banking and investment sectors to new stages of growth and development. He cited the initiatives and projects that were launched recently, like the Smart License Project, Office Licenses Merger System, and amendment of the Companies Law, which reflect policies to develop and improve the business environment in the country. He emphasized that 'these government reforms are manifested in the economic indicators of the country.' He explained that before the adoption of these reforms, the gross domestic product (GDP) witnessed a remarkable four percent growth in non-oil sectors, indicating a real beginning in terms of diversifying sources of income and reducing dependence on traditional resources. He stated that 'the government is looking forward to improving these rates in 2025 and the coming years. We have a historic opportunity to move Kuwait to a new phase of growth, productivity and partnership.' Regarding foreign investment, he revealed that Kuwait has adopted measures to improve the investment environment, raise the level of transparency and strengthen legal frameworks, which contributed to a 20 percent increase in foreign direct investment inflows last year. He pointed out that the country has witnessed many international investments in different sectors such as technology, renewable energy, and infrastructure, reflecting the extent of foreign investor confidence in Kuwait as a stable and ambitious investment hub. He added that mega strategic projects like Zour Refinery, Mubarak Al-Kabeer Port and Kuwait National Railway, along with the development of smart cities and infrastructure, not only strengthen the economic structure of the country, but also establish a sustainable economy based on innovation, diversity and partnerships between the private sector and the government. He said 'The noble directives of His Highness the Amir Sheikh Meshal Al- Ahmad Al-Jaber Al-Sabah are considered the compass that guides all of us in formulating the economic policies of the State. His Highness has repeatedly emphasized that Kuwait is now facing a historic responsibility that requires serious action to build a resilient and globally open economy based on knowledge and innovation, led by the private sector, supported by the State, and confidently keeping pace with rapid regional and global developments.' He believes that the challenge today does not lie in formulating visions; but in transforming them into reality through cooperation between the public and private sectors, developing national competencies, and strengthening Kuwait's position as an influential economic and investment hub in the region. 'The government looks forward to the future with confidence and treats challenges as opportunities to move assertively toward building a new Kuwaiti economic model -- one that believes in partnership, embraces modernity, and invests in people above all else,' he concluded.
Zawya
21-05-2025
- Business
- Zawya
Kuwait: New Public Debt Law aims to boost financing and liquidity
KUWAIT CITY - Undersecretary of the Ministry of Finance Aseel Al-Munifi has emphasized the core objectives of the newly issued Public Debt Law -- Financing and Liquidity, highlighting its role in providing the State with diversified financial resources, both locally and internationally, to support development projects. In a media briefing on Monday, Al-Munifi explained that the law is designed to strengthen domestic financial markets, stimulate the banking sector, and reflect the State's capacity to borrow responsibly. She stressed that access to liquidity will enhance the financial reserves of the country, helping it to meet obligations amid evolving global economic conditions. Al-Munifi stated that the Public Debt Law will play a pivotal role in advancing numerous development initiatives, ultimately driving economic growth and supporting Kuwait's vision of becoming a regional financial hub. 'Among the key projects to be financed under this law are strategic initiatives in infrastructure, housing and health cities, which form a cornerstone of the national development agenda,' she revealed. She added that the law provides flexible and sustainable financial instruments, reinforcing the government's commitment to diversifying funding sources. In this context, Al-Munifi revealed that a sukuk issuance law will soon follow, pending final procedures. She affirmed that the law is sovereign, with the Ministry of Finance authorized to mandate the Central Bank or Kuwait Investment Authority to act on its behalf in securing financing. The ministry, she added, remains committed to developing a robust legislative framework to enhance the country's fiscal environment. Faisal Al-Muzaini, Director of the Public Debt Department at the ministry, confirmed that borrowing from both domestic and international sources is incorporated into the 2025/2026 budget, with estimated borrowing expected to range between KD3 and KD6 billion. He pointed out major differences between the current and previous debt laws, indicating the new legislation raises the borrowing ceiling from KD10 billion to KD30 billion; and extends the borrowing term from 10 to 50 years. 'It also introduces specific expenditure guidelines, a new element compared to the earlier framework,' he stated. He stressed the importance of leveraging local markets alongside global ones, explaining that the new debt law will positively influence Kuwait's credit rating by showcasing its fiscal discipline and ability to manage development financing effectively. He described the law as 'one of the most significant financial reforms in Kuwait's history.' He also revealed that a flexible financing strategy has been developed to engage confidently with global markets, focusing on minimizing borrowing costs and diversifying the investor base across regions and institutions. He said the main goal is to develop a local debt market by establishing a reliable yield curve, which will serve as a benchmark for domestic investors. He added Kuwait's debt-to-GDP ratio stands at just 2.9 percent, significantly lower than international benchmarks, where this ratio often exceeds 50 percent or 60 percent. He confirmed this low ratio positions Kuwait advantageously to enter capital markets after an eight-year hiatus. Asked whether public debt could be used to repay existing obligations, he confirmed that the law does not prohibit such use and that it will be considered within the broader financing strategy. Although no specific timeline has been set for the initial borrowing, he stated that preparations are underway and that the ministry is nearing the final stages before entering the markets. Regarding borrowing models, he clarified that Kuwait will follow a strategy tailored to its unique fiscal position, leveraging its sovereign reserves and national standards rather than adopting any predefined international model. Arab Times | © Copyright 2024, All Rights Reserved Provided by SyndiGate Media Inc. (
Arab Times
20-05-2025
- Business
- Arab Times
New Public Debt Law aims to boost financing and liquidity
KUWAIT CITY, May 20: Undersecretary of the Ministry of Finance Aseel Al-Munifi has emphasized the core objectives of the newly issued Public Debt Law -- Financing and Liquidity, highlighting its role in providing the State with diversified financial resources, both locally and internationally, to support development projects. In a media briefing on Monday, Al-Munifi explained that the law is designed to strengthen domestic financial markets, stimulate the banking sector, and reflect the State's capacity to borrow responsibly. She stressed that access to liquidity will enhance the financial reserves of the country, helping it to meet obligations amid evolving global economic conditions. Al-Munifi stated that the Public Debt Law will play a pivotal role in advancing numerous development initiatives, ultimately driving economic growth and supporting Kuwait's vision of becoming a regional financial hub. 'Among the key projects to be financed under this law are strategic initiatives in infrastructure, housing and health cities, which form a cornerstone of the national development agenda,' she revealed. She added that the law provides flexible and sustainable financial instruments, reinforcing the government's commitment to diversifying funding sources. In this context, Al-Munifi revealed that a sukuk issuance law will soon follow, pending final procedures. She affirmed that the law is sovereign, with the Ministry of Finance authorized to mandate the Central Bank or Kuwait Investment Authority to act on its behalf in securing financing. The ministry, she added, remains committed to developing a robust legislative framework to enhance the country's fiscal environment. Faisal Al-Muzaini, Director of the Public Debt Department at the ministry, confirmed that borrowing from both domestic and international sources is incorporated into the 2025/2026 budget, with estimated borrowing expected to range between KD3 and KD6 billion. He pointed out major differences between the current and previous debt laws, indicating the new legislation raises the borrowing ceiling from KD10 billion to KD30 billion; and extends the borrowing term from 10 to 50 years. 'It also introduces specific expenditure guidelines, a new element compared to the earlier framework,' he stated. He stressed the importance of leveraging local markets alongside global ones, explaining that the new debt law will positively influence Kuwait's credit rating by showcasing its fiscal discipline and ability to manage development financing effectively. He described the law as 'one of the most significant financial reforms in Kuwait's history.' He also revealed that a flexible financing strategy has been developed to engage confidently with global markets, focusing on minimizing borrowing costs and diversifying the investor base across regions and institutions. He said the main goal is to develop a local debt market by establishing a reliable yield curve, which will serve as a benchmark for domestic investors. He added Kuwait's debt-to-GDP ratio stands at just 2.9 percent, significantly lower than international benchmarks, where this ratio often exceeds 50 percent or 60 percent. He confirmed this low ratio positions Kuwait advantageously to enter capital markets after an eight-year hiatus. Asked whether public debt could be used to repay existing obligations, he confirmed that the law does not prohibit such use and that it will be considered within the broader financing strategy. Although no specific timeline has been set for the initial borrowing, he stated that preparations are underway and that the ministry is nearing the final stages before entering the markets. Regarding borrowing models, he clarified that Kuwait will follow a strategy tailored to its unique fiscal position, leveraging its sovereign reserves and national standards rather than adopting any predefined international model.
Zawya
29-04-2025
- Business
- Zawya
KPMG publishes latest report comparing Kuwait's leading listed banks' financial performance
Country average in terms of net profit (Y-O-Y) sees double-digit growth Noticeable spike in need to embed AI in banking; implementation paramount to support cost adjustments Kuwait: In a first, KPMG published a Kuwait-specific banking report comparing the country's leading banks' financial performance, titled Kuwait listed banks' results 2025. The report offers a comprehensive analysis of Kuwait's nine listed commercial banks' financial results for the year-ended 31 December 2024 compared with the prior year (year-ended 31 December 2023) to predict future directions and trends of the country's banking sector. Banks in Kuwait closed the year (year-ended 31 Dec 2024) strong, with the country's average increase year-on-year in terms of total assets (8.49%) and net profit (12.63%) in the green. The report also pointed at the dip in the banks' overall cost-to-income ratio from 47.61% (2023) to 47.26% (2024). With the broader sentiment of the report portraying a positive outlook for the country's banking sector, Bhavesh Gandhi, Partner and Head of Financial Services, KPMG Kuwait, said: 'Based on our analyses, the prospects for Kuwait's banking industry, supported by recent reforms such as the Public Debt Law and decline in interest rates, remains hopeful. If implemented, we expect the Mortgage Law to unlock newer investment opportunities for the banks that could help expand on lenders' credit portfolios. While it might be far-fetched to say how some of the initiatives may impact the sector on the long term, we are seeing some promise in bank-led initiatives, such as investments towards digitalization and refined cost management, that paints a buoyant picture for the future.' The KPMG publication probed deeper into the banks' performance based on eight key performance indicators (KPIs) to identify any underlying themes that could play a part in shaping Kuwait's banking industry. They were: (1) total assets; (2) net profit; (3) share price; (4) return on equity; (5) return on assets; (6) cost-to-income ratio; (7) loan by stage; and (8) non-performing loan ratio. Marking the significance of the newly implemented Public Debt Law in Kuwait, the report drew more attention to the strategic role the law could play in debt management by enabling banks to access the country's sovereign debt instrument. Although more remains to be seen and done regarding the proposed Mortgage Law, once implemented, KPMG analysts anticipate it to offer banks some sense of relief as it would enable them to offer mortgages up to KD 200,000 (approx. USD 649,000), with repayment periods extending to 25 years, and allow them to tap into alternate revenue pools. One of the primary findings from the report indicated that banking executives are divided by AI's transformative potential and the potential risks it brings with it. In Kuwait, larger strides with respect to the implementation of AI in banking remain to be taken, with one of the biggest challenges being convincing decisionmakers to view AI as a strategic rather a technology-based investment, underlined the report. It further emphasized that AI implementation in banks is not straightforward, given factors such as risk, compliance and regulatory complexities, security, and resistance to adoption continue to serve as headwinds. Addressing the role of AI in banking, Bhavesh added: 'AI implementation calls for an all-round rethink that encompasses strategy, culture, operations and ethics, and banks should consider viewing it as a driver of sustainable growth to tap into its full potential. Embedding AI on a cross-functional level would allow banks to create more innovative consumer-focused solutions that can enhance profitability and deepen customer loyalty.' Additionally, KPMG professionals weighed in that considering banks in Kuwait face elevated regulatory, technological and operational costs, there is an increasing need to relook at how they can better manage expenses without compromising on their efficiencies. While there is no universal solution to how banks could go about cost reduction, the expectation is that banks might take a closer lens to their spendings and discern more ways to minimize them, concluded the report. For more details, visit
Arab Times
29-04-2025
- Business
- Arab Times
KPMG publishes latest report comparing Kuwait's leading listed banks' financial performance; anticipates top trends for the banking sector
KUWAIT CITY, April 29: In a first, KPMG published a Kuwait-specific banking report comparing the country's leading banks' financial performance, titled Kuwait listed banks' results 2025. The report offers a comprehensive analysis of Kuwait's nine listed commercial banks' financial results for the year-ended 31 December 2024 compared with the prior year (year-ended 31 December 2023) to predict future directions and trends of the country's banking sector. Country average in terms of net profit (Y-O-Y) sees double-digit growth Noticeable spike in need to embed AI in banking; implementation paramount to support cost adjustments Banks in Kuwait closed the year (year-ended 31 Dec 2024) strong, with the country's average increase year-on-year in terms of total assets (8.49%) and net profit (12.63%) in the green. The report also pointed at the dip in the banks' overall cost-to-income ratio from 47.61% (2023) to 47.26% (2024). With the broader sentiment of the report portraying a positive outlook for the country's banking sector, Bhavesh Gandhi, Partner and Head of Financial Services, KPMG Kuwait, said: 'Based on our analyses, the prospects for Kuwait's banking industry, supported by recent reforms such as the Public Debt Law and decline in interest rates, remains hopeful. If implemented, we expect the Mortgage Law to unlock newer investment opportunities for the banks that could help expand on lenders' credit portfolios. While it might be far-fetched to say how some of the initiatives may impact the sector on the long term, we are seeing some promise in bank-led initiatives, such as investments towards digitalization and refined cost management, that paints a buoyant picture for the future.' The KPMG publication probed deeper into the banks' performance based on eight key performance indicators (KPIs) to identify any underlying themes that could play a part in shaping Kuwait's banking industry. They were: (1) total assets; (2) net profit; (3) share price; (4) return on equity; (5) return on assets; (6) cost-to-income ratio; (7) loan by stage; and (8) non-performing loan ratio. Marking the significance of the newly implemented Public Debt Law in Kuwait, the report drew more attention to the strategic role the law could play in debt management by enabling banks to access the country's sovereign debt instrument. Although more remains to be seen and done regarding the proposed Mortgage Law, once implemented, KPMG analysts anticipate it to offer banks some sense of relief as it would enable them to offer mortgages up to KD 200,000 (approx. USD 649,000), with repayment periods extending to 25 years, and allow them to tap into alternate revenue pools. One of the primary findings from the report indicated that banking executives are divided by AI's transformative potential and the potential risks it brings with it. In Kuwait, larger strides with respect to the implementation of AI in banking remain to be taken, with one of the biggest challenges being convincing decisionmakers to view AI as a strategic rather a technology-based investment, underlined the report. It further emphasized that AI implementation in banks is not straightforward, given factors such as risk, compliance and regulatory complexities, security, and resistance to adoption continue to serve as headwinds. Addressing the role of AI in banking, Bhavesh added: 'AI implementation calls for an all-round rethink that encompasses strategy, culture, operations and ethics, and banks should consider viewing it as a driver of sustainable growth to tap into its full potential. Embedding AI on a cross-functional level would allow banks to create more innovative consumer-focused solutions that can enhance profitability and deepen customer loyalty.' Additionally, KPMG professionals weighed in that considering banks in Kuwait face elevated regulatory, technological and operational costs, there is an increasing need to relook at how they can better manage expenses without compromising on their efficiencies. While there is no universal solution to how banks could go about cost reduction, the expectation is that banks might take a closer lens to their spendings and discern more ways to minimize them, concluded the report.
