Kuwait has secured an ‘A+’ sovereign credit rating with a stable outlook from Standard & Poor’s (S&P), thanks to a substantial stock of government financial assets projected to support around 418 percent of the nation’s GDP in 2024. Despite lagging structural and financial reforms and a heavy dependence on the oil sector, S&P expects Kuwait’s real GDP to grow by an average of 2.4 percent from 2025 to 2027, following a contraction of 2.3 percent in 2024. This forecast assumes a slight easing of restrictions under the OPEC agreement on oil production.
The report also emphasized the expected acceleration of large government investment projects driven by the New Kuwait 2035 vision, aimed at transforming Kuwait into a regional and international financial and trade hub. The stable outlook reflects the assumption that Kuwait’s substantial financial and external balances will remain robust, with government financial assets projected to reach 447 percent of GDP between 2024 and 2027, mitigating risks associated with oil price fluctuations. An upgrade could occur with successful structural reforms, while a downgrade could result from significant fiscal imbalances or the absence of fiscal reforms.