Kuwait City, October 26, 2023
In a landmark move expected to reshape the country's economic landscape, the Kuwaiti government has announced a comprehensive strategy to reduce its dependence on oil revenue by 40 percent by 2035. The initiative, dubbed "Kuwait Vision 2035 Economic Diversification Plan," was formally unveiled by the Minister of Finance, Dr. Anwar Al-Mudhaf, during a nationally televised press conference at the Sheikh Jaber Al-Ahmad Cultural Centre on Wednesday.
According to the minister, the primary goal is to transform Kuwait from a rentier state into a regional hub for financial services, technology, and renewable energy. The plan outlines five key pillars: a $25 billion investment in solar and wind energy projects across the Al-Shaqaya region, a complete digitalization of public services, the establishment of a state-backed venture capital fund for local tech startups, an overhaul of the foreign investment law to include 100 percent foreign ownership in key sectors, and a massive infrastructure modernisation program for Kuwait City.
The announcement comes as Kuwait faces mounting fiscal pressure from volatile global oil prices. The country, which holds approximately seven percent of the world's proven oil reserves, currently derives over 90 percent of its state revenue from hydrocarbons. "We cannot afford to wait. The time for decisive action is now," Dr. Al-Mudhaf stated, emphasizing that the plan aims to create 150,000 new private-sector jobs for Kuwaiti nationals by 2030.
However, the initiative has already sparked significant debate within the National Assembly. Some opposition MPs have raised concerns over the speed of the proposed policy changes, particularly regarding the privatization of state assets and its potential impact on the country’s generous welfare system. Member of Parliament Ali Al-Qattan argued that the plan lacks a clear timeline for safeguarding the livelihoods of public sector employees.
The announcement has sent ripples through international markets, with global trade analysts analyzing the plan’s viability