Kuwait considers launching $165 billion investment company to drive infrastructure
New state-backed entity would support major national projects, issue $15 billion sukuk by 2028, and attract foreign investment
KUWAIT CITY, Kuwait (MNTV) — Kuwait is weighing the establishment of a government-funded investment company with authorized capital of 50 billion Kuwaiti dinars (approximately $165 billion) to finance large-scale infrastructure, energy, and industrial projects.
The proposal, submitted by Finance Minister Noura Al-Fassam to the Kuwaiti cabinet, outlines the creation of a strategic development entity tasked with investing in sectors such as energy, transportation, smart cities, and industrial zones, the Arabic-language daily Alqabas reported.
Citing sources within the Ministry of Finance, the report stated that the initiative is expected to significantly boost Kuwait’s economic growth and alleviate fiscal pressures.
Government projections suggest the company could help reduce budgetary strain by up to 30 percent while attracting private and foreign investment estimated at nearly KWD10 billion ($33 billion).
A preliminary framework for the new investment firm indicated it would serve as a major catalyst for Kuwait’s infrastructure overhaul, enhancing the country’s regional and international competitiveness.
Priority areas under consideration include solar and wind power, green hydrogen production, advanced power generation, tourism islands, industrial and commercial hubs, road network expansions, and export-oriented developments.
The proposed company would be wholly funded by the government through a capital call drawdown mechanism, and its implementation would span six years, covering structural development, capital deployment, and project approvals.
As part of its financing roadmap, the entity is projected to issue sukuk and bonds worth KWD4.5 billion ($15 billion) in 2028 to support its investment activities.
The following years would see a scale-up in project financing and capital deployment, according to the study.
Although specific funding mechanisms were not disclosed, the initiative follows Kuwait’s revival of a long-standing law allowing the state to borrow up to $100 billion over a 50-year period to support budgetary needs and infrastructure upgrades.
The move also aligns with Kuwait’s recent efforts to address chronic electricity shortages, as the country plans new solar and conventional power generation projects to meet surging demand.
Kuwait’s Investment Authority—the nation’s sovereign wealth fund and one of the largest globally—holds assets exceeding $1 trillion, according to the Sovereign Wealth Fund Institute, positioning the country to finance long-term development strategies.
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