Kuwait’s economy gears up for ‘slow’ year-end recovery

KUWAIT CITY, Sept 2: The easing of geopolitical tensions suggests a promising final quarter capable of absorbing shocks and stimulating local economic performance in 2026. Kuwait’s economy gears up for ‘slow’ year-end recovery 02/09/2026 Add as Preferred Source on Google Former Ministry of Finance advisor and economic expert Mohammad Ramadan explained that financial buffers enabled the state to effectively overcome crises despite the decline in oil revenues following the closure of the Strait of Hormuz. Strong government capital spending on strategic projects had succeeded in revitalizing the local market and stimulating the economic cycle. This strong performance of the national economy was refl ected positively and directly in trading activity on the stock exchange, and there is hope that this positive performance would continue during the final quarter of the year. Meanwhile, economic expert Ahmad Al-Sundan confirmed that official economic and financial indicators for the final quarter of 2026 show signs of a gradual and resilient recovery in the Kuwaiti economy and the Boursa Kuwait, paving the way for stable performance. He stated that the improvement is due to the markets’ absorption of the shocks caused by regional geopolitical tensions and the return of momentum to capital and commercial spending. Al-Sundan explained that the recovery is refl ected in the projections of international institutions, such as the International Monetary Fund, which expects Kuwait’s GDP growth to reach nearly 4 percent in 2026, supported by the resilience of non-oil sectors and robust consumer spending. Consumer spending reached approximately 32.77 billion dinars from the beginning of the year through the end of July. Oil capital expenditures of 2.3 billion dinars are supporting major development projects. He pointed out that the enactment of liquidity legislation and the issuance of debt instruments have contributed to easing pressure on the general reserve and improving the country’s credit rating. Al-Sundan revealed that the Boursa Kuwait successfully absorbed the negative impacts of mid-year tensions, supported by a decline in regional risks and the strong performance of major banking stocks, such as the National Bank of Kuwait and Kuwait Finance House, which contributed to the recovery of the market index. He stated that strong sovereign solvency and well-established legislative frameworks prevented any structural setbacks during the peak of the crises in the second and third quarters of this year. He indicated that the government’s effective management of the economy has contributed to revitalizing the local market and stimulating the economic cycle.