Investing in Kuwait: Vision 2035 and Strategic Development Opportunities

For entities investing in Kuwait, the GCC country presents a stable, strategically connected market with an array of opportunities in the non-oil, technology, healthcare, and private sectors, facilitated by the Vision 2035 approach.

By Estelle Xiao

The State of Kuwait, strategically positioned in West Asia and bordered by Iraq to the north, Saudi Arabia to the south, and the Persian Gulf to the east, stands as a compelling investment destination. As a member of the Gulf Cooperation Council (GCC), the United Nations, the Arab League, and OPEC, Kuwait offers unique prospects for investors across sectors worldwide.

Vision 2035

To strengthen its attractiveness to global investors, Kuwait launched ‘Vision 2035’, a transformative agenda aimed at positioning Kuwait as a regional and international financial hub. The plan emphasizes a business-friendly climate where the private sector leads economic growth, enhances competition, and improves productivity. Supported by strategic geography, progressive legislative frameworks, a comprehensive judiciary, and a balanced foreign policy, Kuwait seeks to elevate government performance and utilize national resources to realize Vision 2035 objectives. These include:

• Increase local productivity and development of non-oil economic sectors;
• Improve standards of living for citizens;
• Engage the private sector into the national economic activity of the country;
• Support human and social development;
• Train and qualify national human resources;
• Enable and qualify national human resources;
• Preserve government administration by restructuring government bodies; and
• Preserve the values of the Arab-Islamic identity.

Investment sectors outlook

Infrastructure and construction

As part of Vision 2035 and the third National Development Plan, covering the period from 2020 to 2025, Kuwait aims to reduce its dependency on the oil industry and create more job opportunities in the private sector.

In the next 15 years, 250,000 additional housing units will be required to meet the growing demand for housing. However, given the current rate of construction, only 180,000 units are expected to be built by 2035. This presents a promising opportunity for construction companies to enter the market and help make Vision 2035 a reality.

From 2020 to 2025, Kuwait is focused on economic reform and implementing numerous long-stalled mega projects, with large infrastructure projects estimated at US$124 billion. These projects include a US$4 billion new airport terminal, development of the Mubarak Al-Kabeer Port on Boubyan Island, and a petrochemicals complex. These opportunities indicate that Kuwait’s commercial and residential construction plans will offer significant opportunities for building products and construction equipment from around the world.

Renewable energy

Kuwait is, and will continue to be, investing in infrastructure projects to meet the growing demands of its rising population and expanding economy. Power generation is a key focus, including both fuel and renewable sectors. There is increasing interest in generating power using renewable energy sources, such as solar, wind, tidal power, and green hydrogen. The Kuwaiti government has set a target to produce at least 15 percent of the country’s energy mix from renewable sources by 2035.

One example of foreign investment is a US$5.1 million project by the National Center for Atmospheric Research (NCAR), funded over three years and sponsored by the Kuwait Institute for Scientific Research (KISR). Under this project, the Shagaya Renewable Energy Park will become the world’s second-largest photovoltaic (PV) plant in its second phase of development, aiming for a combined wind and solar power capacity of 3-5 GW at Shagaya by 2030.

IT, software development, and technology

Kuwait’s telecommunications services are rapidly improving. In recent years, the market has vertically integrated, with several telecom companies acquiring international service providers (ISPs) to provide bundled mobile and internet services for both commercial and consumer customers.

As a key pillar of Kuwait’s Vision 2035, the telecom industry is advanced and aims to continue expanding, with 5G service, fiber optic cabling, and satellite connectivity available across the country. IT service providers and application developers are well-established, supporting a thriving tech ecosystem.

In Kuwait, 99.4 percent of homes have internet access, and the 5G network covers approximately 97 percent of the population. Kuwait is rapidly adopting digital technologies, such as artificial intelligence, machine learning, next-generation internet, cloud computing, predictive analytics, and robotic process automation.

In 2024, Kuwait Telecommunications Company (stc) and Huawei, a Chinese multinational technology corporation, collaborated to build 5.5G-based intelligent wireless networks and introduce 5.5G services for consumers, homes, and businesses, further advancing the 5.5G industry and ecosystem. The two companies will also collaborate to launch customized smart office solutions for SMEs and develop vertical applications in the oil and gas industry.

Healthcare

Non-communicable diseases (NCDs), such as diabetes and cancer, account for around 72 percent of deaths in Kuwait, contributing to a life expectancy below the average for developed countries.

Al Amiri Hospital is currently the only public hospital in Kuwait with a fully digital healthcare system. However, more public institutions in Kuwait are seeking opportunities to improve healthcare for Kuwaiti citizens. As a pillar of Vision 2035, Kuwait is exploring data integration to support electronic patient records, customer relationship management systems, and cloud security solutions.

Driven by Vision 2035, Kuwait has recorded one of the highest levels of healthcare expenditure as a share of GDP in the GCC, reaching 5.1 percent in 2023. The government of Kuwait expects healthcare to remain an investment priority over the medium to long term under Vision 2035, creating promising opportunities for investors interested in various aspects of the healthcare system.

Kuwait’s key economic zones

Vision 2035 is also aimed at expanding the national labor force in the private sector by 69 percent, promoting industry growth in areas such as logistics, manufacturing, and trade through the establishment of specialized economic zones. Regulated by the Kuwait Direct Investment Promotion Authority (KDIPA), these zones operate under a supportive legal framework and offer incentives to attract global investors. Key economic zones include:

• Al Abdali Economic Zone: Focused on coke and petroleum products, logistics, and waste management.
• Al-Wafra Economic Zone: Dedicated to basic industries and environmental technologies.
• Shuwaikh Free Zone: Kuwait’s first free trade zone, promoting re-export and transit trade to strengthen Kuwait’s regional commercial role.
• Al-Nuwaiseeb Free Zone: A developing free trade zone managed by KDIPA, designed to drive competitive trade activities.

Conclusion

Kuwait’s strategic location, visionary approach through Vision 2035, and comprehensive legal and economic frameworks make it a compelling choice for investors. The country’s focus on diversifying beyond oil, fostering private-sector growth, and advancing sectors like healthcare, technology, and renewable energy signals a forward-looking economy ready to support long-term investments. For those seeking a stable, strategically connected investment landscape in the Gulf, Kuwait offers an array of opportunities aligned with a clear vision for sustainable and inclusive growth.

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