In parallel with Kuwait's tireless efforts to enhance investment and economic opportunities, the government's openness has resulted in attracting a significant influx of foreign investment to the country, attracting international companies at a time when the state is intensifying its comprehensive initiatives to achieve sustainable development.

The Kuwait Petroleum Corporation's recent announcement of the signing of the $16 billion Shaheen Project agreement represents a qualitative leap forward in supporting the state's efforts to diversify funding sources and strengthen the participation of global investors in the national economy.

The project aims to financially leverage existing assets through a $16 billion crude oil pipeline lease and leaseback model, generating substantial cash returns estimated at $7.85 billion.

It represents the largest foreign direct investment in Kuwait's history and is a cornerstone of the capital expenditure and financing plan to increase crude oil production capacity to 4 million barrels per day by 2035.

The agreement was signed with a consortium of leading global infrastructure investors and investment institutions, led by investment funds managed by Blackstone, Brookfield, and KKR. Foreign

direct

investment inflows to Kuwait reached approximately KWD 126.4 million (US$412.4 million) in 2025.

The Central Bank of Kuwait confirmed the continued growth of the Kuwaiti foreign direct investment stock over the past years, projecting it to reach approximately KWD 5.4 billion (US$17.6 billion) by the end of 2025. This reflects the accumulation of existing foreign direct investments in the Kuwaiti economy and the country's continued attractiveness as an investment destination.

The Central Bank of Kuwait clarified in a statement issued last July that the concept of foreign direct investment (FDI) encompasses investments granting the foreign investor a significant stake of at least 10 percent in an establishment, whether inside or outside the country. It excludes investments in securities where ownership is less than this percentage, financial derivatives, deposits, loans, and other financial instruments. The

statement further noted that when the data is broadened to include all financial instruments, total inflows rise to approximately 11.8 billion Kuwaiti dinars, equivalent to about 38.5 billion US dollars. Kuwait ranked

fifth in

the Arab world and 52nd globally in the 2025 Investment Climate Guarantee Index (Dhaman), advancing two places compared to the 2024 index. According to the Arab Investment & Export Credit Guarantee Corporation (Dhaman), the volume of FDI inflows to the country reached 497 million US dollars.

The strength of the strategy to attract foreign investment was reflected in its latest success at the end of July when Blackstone, the world's largest alternative asset manager, announced its plans to open an office in Kuwait through the Kuwait Direct Investment Promotion Authority (KDIPA), a move that strengthens its presence in the Gulf Cooperation Council (GCC) countries.