A Year of Diplomacy and Growth
The State of Kuwait has markedly broadened its regional and global strategic partnerships throughout 2025, engaging in a series of multi-sector deals and Memoranda of Understanding (MoUs). This extensive outreach, described as a 'Year of Diplomacy' and 'Growth', encompasses critical areas such as diplomatic relations, economic cooperation, military and security alliances, health initiatives, scientific research, and advancements in artificial intelligence. The expansion underscores Kuwait's ambitious vision to strengthen its international standing and drive sustainable development and economic diversification.
Deepening Regional Alliances
Kuwait has reinforced its strategic depth within the Gulf Cooperation Council (GCC) through enhanced bilateral relations with member states. With the Kingdom of Saudi Arabia, cooperation was strengthened through financial and security agreements, including a pact between ministries of finance and an MoU between Financial Intelligence Units to enhance information exchange. Further agreements covered competition protection, academic cooperation with King Saud University, and the organization of Kuwaiti pilgrims' affairs for the 1446 AH Hajj season.
Relations with Qatar saw progress following Joint Higher Committee meetings, resulting in three MoUs in industrial export development, standardization, and social insurance, alongside an executive program for cultural and artistic cooperation for 2025–2026. A financial cooperation agreement between the two ministries of finance also supported regional economic integration.
With the United Arab Emirates (UAE), Kuwait signed eight MoUs covering diverse fields such as land transport, industry, advanced technology, electricity, water, future energy, oil and gas, health, education, investment promotion, and joint security cooperation, including combating human trafficking and protecting shared data. A significant defense contract worth AED 9 billion (US$2.45 billion) was signed with the UAE's EDGE Group for the acquisition of 'Falaj 3' class missile boats. Additionally, the Kuwait Investment Authority joined an Artificial Intelligence Infrastructure Partnership with MGX, BlackRock, Global Infrastructure Partners, and Microsoft.
Cooperation with Bahrain was enhanced through an MoU aimed at improving collaboration in the health sector and advancing healthcare standards.
Expanding Global Engagement and Diversification
On the international front, Kuwait diversified its strategic partnerships with several key nations and organizations:
- United Kingdom: Three strategic agreements were signed in July 2025, focusing on trade, education, cultural exchange, and joint security initiatives.
- France: A Strategic Investment Partnership (2025-2035) was established, aligning Kuwait Vision 2035 with France 2030. This partnership covers economic and investment cooperation, energy, sustainability, advanced technology, innovation, defense, security, healthcare, education, and culture. A memorandum between the National Guard and the French Gendarmerie was also signed.
- India: Bilateral ties were elevated to a 'strategic partnership' following Prime Minister Narendra Modi's visit in December 2024, with a focus on crude oil trade, remittances, economic engagements, and potential joint research in renewable energy, AI, healthcare, and desert ecology.
- China: A renewable energy cooperation framework was established.
- Türkiye: Agreements were concluded in maritime transport, energy, and direct investment.
- Uzbekistan: Four agreements were signed covering air transport, labor exchange, smart city development, and industrial cooperation.
- Austria: A protocol was signed to amend their agreement on avoiding double taxation and preventing financial evasion.
- Egypt: A military cooperation agreement and an MoU for joint cooperation in regional security and diplomatic capacity-building were signed.
Kuwait also enhanced its engagement with international organizations by acceding to the World Water Organization and signing three agreements with the International Atomic Energy Agency (IAEA), including the Fourth Framework Plan for Technical Cooperation (2026–2035). The Kuwait Institute for Scientific Research (KISR) was redesignated as a regional collaborating center for radiation monitoring and marine pollution control. The Kuwait Fund for Arab Economic Development (KFAED) signed an MoU with the United Nations Industrial Development Organization (UNIDO) to strengthen development cooperation in developing countries.
Focus on Technology and Economic Reforms
As part of its economic diversification and digital transformation strategy, Kuwait entered into significant partnerships in technology and artificial intelligence. This includes an agreement with Microsoft to establish AI data infrastructure and a cloud computing center of excellence, as well as cooperation with Hong Kong on financial technologies and AI.
In 2025, Kuwait also implemented notable economic reforms, including the introduction of a 15% Domestic Minimum Top-Up Tax on multinational enterprises and an overhaul of state property regulations. This overhaul, through Decree Law No. 7/2025, permits foreign investors to own real estate in certain instances, aiming to boost investment and modernize the economy.
5 Comments
Comandante
Dependency on so many foreign entities feels risky and unsustainable. Where is the true self-reliance?
Muchacha
Strengthening regional ties within the GCC and expanding globally is a wise move for Kuwait's geopolitical influence. Nevertheless, balancing these diverse interests without overstretching resources or diluting focus will be a key challenge.
ZmeeLove
Smart moves in tech and AI partnerships. This will drive real innovation and progress for the country.
Muchacho
The push towards AI and advanced technology is definitely a step in the right direction for future growth. Yet, the article doesn't detail how these advancements will directly benefit the average citizen or create widespread job opportunities.
Coccinella
Opening up real estate to foreign investors could inflate prices dramatically. This is a very bad idea for locals.