Strengthening Ties: The Kuwait-UAE Economic Forum
A Promising Outlook for Bilateral Relations
At the Kuwait-UAE Economic Forum held in Dubai on Monday, business leaders from Kuwait and the United Arab Emirates expressed optimism about the future of their bilateral relations. With an increasing volume of trade, joint investments, and enhanced regulatory alignment, attendees highlighted the potential for collaboration even as they acknowledged the challenges posed by growing global competition.
Historical Context and Current Trade Dynamics
Kuwait was among the first nations to recognize the UAE shortly after its formation in the early 1970s. Over the decades, this partnership has matured, culminating in a robust trade relationship that stood at approximately $13.6 billion by the end of 2024. Marwa Al Juaidan, Kuwait’s Undersecretary at the Ministry of Commerce and Industry, outlined these figures at the forum, affirming that trade cooperation has been essential to strengthening ties between the two countries.
Voices of Experience
Dr. Thani Al Zeyoudi, UAE Minister of State for Foreign Trade, identified cooperation in trade as the foundation of the ongoing relationship between Kuwait and the UAE. This sentiment echoed through various discussions at the forum, which featured insights from both seasoned executives and emerging entrepreneurs. Notably, Ali Al Ebrahim, CEO of the Kuwaiti precision coffee-making company Cofe, shared his vision for future collaborations.
Alongside contemporary discussions, the forum also paid tribute to pioneers like the Murshid Al Osaimi family, who relocated from Kuwait in 1944 and successfully established a merchant business in Dubai’s Deira district. Their legacy serves as a reminder of the long-standing connections that have laid the groundwork for today’s economic interactions.
Celebrating a Legacy of Cooperation
Feras Al Salem, President of the Kuwait Business Council in Dubai and Northern Emirates, emphasized the decades of cooperation that predate the UAE’s formation. He remarked, “We’ve seen a lot of bilateral cooperation between Kuwait and the UAE over the past 70 years. Previous generations laid a very strong foundation, and that is allowing trade today to accelerate at a much faster pace.”
As a reflection of their growing economic partnership, bilateral trade reached Dh38.8 billion by the third quarter of 2025, marking a noteworthy increase of 15% year-on-year compared to the first half of 2024. This trend, Mr. Al Salem noted, bodes well for the private sector and indicates a robust economic future.
New Agreements and Future Prospects
Recent agreements including a tax treaty signed in 2024 and a direct investment agreement between the respective ministries of investment from both nations have set the stage for enhanced business operations. These agreements offer a solid framework for financial institutions, investment firms, and entrepreneurs, fostering a conducive environment for bilateral trade.
Furthermore, Mr. Al Salem pointed out Kuwait’s active role in several major technology projects in the UAE. He highlighted that Kuwait’s commitment to investing in a significant AI and data center infrastructure project in Abu Dhabi illustrates deeper economic integration. Being the first financial investor and non-operating partner in this venture demonstrates Kuwait’s proactive approach to harnessing opportunities in the fast-evolving tech landscape.
Aiming for Innovation and Expansion
The AI infrastructure partnership involving companies like MGX, BlackRock, Global Infrastructure Partners, and Microsoft reflects a significant collaborative investment, with the Kuwait Investment Authority joining in hopes of mobilizing $30 billion in equity capital. As both countries continue to embrace a more open Gulf market, they are attracting a diverse array of international firms, particularly from China, which have been eager to tap into the region’s growing consumer base.
With high smartphone penetration and relatively open digital trade frameworks, the Gulf presents a lucrative landscape for global businesses. As economic ties between Kuwait and the UAE strengthen, the future appears bright for further collaboration across various sectors, including technology, trade, and investment.
