Kuwait Lures Global Investment through Economic Reform and Partnerships

Kuwait has made significant strides in attracting global investment through economic reform and partnerships. A major example is the Shaheen Project, a $16 billion sale-and-leaseback model for crude oil pipelines signed by Kuwait Petroleum Corporation (KPC) with a consortium of global investors led by Blackstone, Brookfield, and KKR.

The project aims to monetize existing assets, generating estimated cash proceeds of $7.85 billion. This marks the largest foreign direct investment in Kuwait's history and is a key element of plans to finance capital expenditure and raise crude oil production capacity to four million barrels per day.

Kamel Al-Harami, an oil expert, described the project as a major shift in the philosophy of Kuwait's oil sector. He said it opens the door to global banking alliances to finance one of the state's most important assets and provides financial revenues amid budget deficits and liquidity needs.

The government's approach in attracting investment through the Direct Investment Promotion Authority and public-private partnership framework has been praised by experts as a significant shift in investment management. Foreign direct investment inflows into Kuwait reached $412.4 million in 2025, with a stock of foreign direct investment reaching approximately $17.6 billion at the end of 2025.

The country's efforts to attract global companies have been successful, with Blackstone announcing plans to open an office in Kuwait through the Direct Investment Promotion Authority and Franklin Templeton officially beginning operations in late June. Goldman Sachs also opened an office in October 2025, supporting a strategic partnership spanning 50 years.