KUWAIT CITY, Jan 22: With a vision of optimism rooted in improving economic performance and strong global ratings, Kuwait’s Minister of Finance, Noura Al-Fassam, has announced significant steps toward economic growth and diversification, reports Al-Seyassah daily quoting ‘Al Arabiya Business’. The daily added, during the World Economic Forum in Davos, Al-Fassam highlighted key initiatives to create a resilient and sustainable economy. Al-Fassam projected a 2.6 percent economic growth for 2025, citing increased capital expenditure and serious financial reforms. “We are optimistic about the near future as Kuwait moves to diversify its economy and achieve financial balance,” she stated. Addressing concerns about taxation, Al-Fassam confirmed that no income tax will be imposed on individuals at this time, though discussions are ongoing in collaboration with Gulf Cooperation Council (GCC) countries. She emphasized that any new taxes introduced would align with Kuwait’s priorities and provide tangible benefits to the state. Regarding corporate taxation, Al-Fassam revealed that a draft law is underway to introduce a 15 percent income tax on corporate earnings, while small and medium enterprises (SMEs) and vital sectors will be exempt to encourage growth and innovation. As part of Kuwait’s broader economic strategy, efforts are being directed toward in the following area:

Increasing Non-Oil Revenue: Initial targets aim to raise non-oil revenues to 10 percent, with aspirations to reach higher benchmarks similar to other Gulf states.

Attracting Investments: Key sectors for investment include renewable energy, infrastructure, technology and family-focused tourism, particularly from the Gulf region. Successes such as the Gulf Cup have already demonstrated the potential of family tourism. Foreign Investment Success: Kuwait’s Direct Investment Promotion Authority (KDIPA) has successfully attracted over 5 billion Kuwaiti dinars since its inception.
The Finance Minister noted the government’s commitment to legislative reforms, which include strengthening public-private partnerships and improving the business environment.

Al-Fassam emphasized that these Continued from Page 1 No income Increasing Non-Oil Revenue: Initial targets aim to raise non-oil revenues to 10 percent, with aspirations to reach higher benchmarks similar to other Gulf states. Attracting Investments: Key sectors for investment include renewable energy, infrastructure, technology and family-focused tourism, particularly from the Gulf region. Successes such as the Gulf Cup have already demonstrated the potential of family tourism.

Foreign Investment Success: Kuwait’s Direct Investment Promotion Authority (KDIPA) has successfully attracted over 5 billion Kuwaiti dinars since its inception. The Finance Minister noted the government’s commitment to legislative reforms, which include strengthening public-private partnerships and improving the business environment. Al-Fassam emphasized that these reforms are crucial for accelerating sustainable development and reducing fiscal pressures.

She concluded by revealing that the Public-Private Partnership Authority (PPPA) will launch several projects soon, further accelerating Kuwait’s developmental trajectory. Kuwait’s focused efforts on economic diversification, tax reforms and investment promotion demonstrate a clear commitment to achieving a resilient and forward-looking economy.