With a projected KD9.8bn deficit in the 2026/27 budget, Kuwait is pushing fiscal and legal reforms by decree, including higher non-oil revenue, a government sukuk law and a new arbitration law. Large port, airport and wastewater projects and a digital government drive centred on the Sahel app continue.
Government · leader
Amir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah / Prime Minister Sheikh Ahmad Al-Abdullah Al-Ahmad Al-Sabah
Key national agenda
- New Kuwait Vision 2035: diversification and non-oil growth
- Fiscal reform and higher non-oil revenue
- Debt legislation including government sukuk
- New arbitration law for government contract disputes
- Execution of major infrastructure projects
- Digital government (Sahel platform) and AI in education
Government programmes
FY2026/27 state budgetSpending KD26.1bn
Revenue KD16.3bn, spending KD26.1bn, deficit KD9.8bn; oil at $57
Capital projects (Mubarak Al-Kabeer Port, Airport T2, wastewater plants, etc.)Capex KD3.1bn
Major infrastructure in the 2026/27 budget, including Umm Al-Hayman and North Kabd wastewater plants
Government sukuk decree-law
Approved by Cabinet on Sep 1, 2026 and referred to the Amir
New Arbitration Law
Includes rules for government-contract arbitration; approved by Cabinet on Sep 16, 2026 and referred to the Amir
Cloud-based digital government and Sahel unified e-services
Cloud, data centre and security cooperation with Google Cloud and Microsoft; Sahel links agencies electronically
Business opportunities
AI chatbot and document-processing automation for public services
The Sahel platform and cloud migration are driving demand for service automation across ministries.
Central Agency for Information Technology, service ministries
AI learning assistant and teacher workload automation for schools
The Cabinet has backed AI adoption in education.
Ministry of Education
PMO consulting for schedule and cost control on public infrastructure
With a large deficit, efficient execution of capex projects matters more.
Ministry of Public Works, Ministry of Communications, Korean contractor sites
Non-oil revenue and fiscal data analytics advisory
The government is highlighting fiscal reform and non-oil revenue gains.
Ministry of Finance
Korean support schemes
- South Saad Al-Abdullah Smart City · LH / Ministry of Land, Infrastructure and Transport — A Korean-model smart new town developed with Kuwait's housing authority that offers an entry route for Korean SMEs (2022 material).
- Korea-Kuwait construction cooperation and order support · Ministry of Land, Infrastructure and Transport — Government-level support for airport operations, Al-Zour petrochemicals, Abdullah new town and road O&M (2023 material).
Official notices
Government of Kuwait (Cabinet / Ministry of Commerce and Industry)
- 2026-09-16 Cabinet approves draft Arbitration Law; reviews Sahel e-service figures for Jan-Aug
- 2026-09-01 Cabinet approves draft government sukuk decree-law; Q1 report shows non-oil revenue growth
- 2026-09-14 Commerce Minister resigns; Minister of State Abdulaziz Al-Marzouq named acting
- 2026 MOCI Ministerial Decision No. 30 waives extra costs to keep supplies flowing and prices stable
Disaster · conflict · epidemic
Watch 2026-10-30
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Iran war regional tension; clashes near Bubiyan Island in May
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Earth & space
Sources
- Kuwait Times - Cabinet OKs draft arbitration law, reviews Sahel services
- Kuwait Times - Financial reforms chart Kuwait's path
- Arab News - Kuwait forecasts 54.7% rise in fiscal deficit
- Middle East Construction News - Kuwait advances major projects in 2026-2027 budget
- Kuwait Times - Cabinet supports AI-driven education, digital government
