Kuwait’s acting finance minister, Subaih Al-Mukhaizeem, stated that the temporary suspension of parliament is expected to enhance governmental agility in decision-making, enabling faster implementation of infrastructure initiatives and structural reforms aimed at economic diversification. In his recent economic assessment, he noted that the non-oil sector expanded modestly by 3.6% in 2024, with projections indicating stronger growth under ongoing fiscal consolidation measures. The country has faced prolonged political instability over the past two decades, with frequent friction between appointed administrations and elected legislative bodies, which has delayed vital development projects and stalled reform efforts. In May, Emir Sheikh Meshal Al-Ahmad Al-Sabah dissolved parliament for up to four years, transferring legislative authority to the Emir and cabinet. The government anticipates that the introduction of the Global Minimum Corporate Tax—effective January 1—and a revised fee structure for public services will support non-oil sector expansion. Al-Mukhaizeem referred to the tax policy as a “strategic step” in this direction. Oil revenues totaled 19.36 billion dinars ($63.4 billion) in the 2024/2025 fiscal year, accounting for 87.8% of total revenues, while the budget recorded a deficit of 1.06 billion dinars. Despite the non-oil sector contributing 56.6% to GDP in 2024, the economy remains heavily dependent on hydrocarbons, which represented 43.4% of GDP.
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Kuwait finance minister sees boost in projects, diversification under parliament suspension
Sept 3 (Reuters) – Kuwait’s acting finance minister said that the temporary suspension of parliament will help the government boost its flexibility in decision-making and carry out infrastructure projects as part of efforts to diversify the economy and implement structural reforms. n nKuwait ‘s non-oil sector grew “slightly,” by 3.6%, in 2024, Acting Minister of Finance Subaih Al-Mukhaizeem said in his latest economic report, but is expected to see stronger growth amid what he described as “fiscal consolidation.” n nSign up here. n nKuwait has endured two decades of recurring political crises marked by persistent clashes between appointed governments and directly elected parliaments, stalling economic reforms and delaying much-needed development projects. n nEmir Sheikh Meshal Al-Ahmad Al-Sabah dissolved parliament in May for up to four years “to review the democratic experience,” with its powers assumed by the Emir and cabinet. n nThe government is counting on the Global Minimum Corporate Tax, which came into force in Kuwait on January 1, along with a new policy of repricing fees for public services, to help strengthen growth in the non-oil sector. Al-Mukhaizeem described this tax as a “strategic step”. n nOil revenues reached 19.36 billion dinars ($63.4 billion), making up 87.8% of actual revenues in the 2024/2025 fiscal year ending March 31, while the budget posted a deficit of 1.06 billion dinars. n n”The Kuwaiti economy still relies mainly on the oil sector,” which accounted for 43.4% of GDP in 2024, while the non-oil sector made up 56.6%, Al-Mukhaizeem said. n n($1 = 0.3053 Kuwaiti dinars)