The review period in Kuwait was characterized by opposition strengthening in parliament, leadership succession and corruption scandals. A period of consolidation from 2016 to 2020 gave way to political rifts, with frequent cabinet resignations and repeated suspensions and finally the dissolution of the National Assembly. Increased opposition influence led to friction over costly populist measures and the government’s fifth resignation in two years in January 2023.

Despite Kuwait’s wealth, its fiscal crisis stems from oil export reliance, failed diversification and susceptibility to global market fluctuations. Measures to counter the economic fallout from the COVID-19 pandemic have depleted financial reserves.

Socioeconomic challenges, including the status of the Bidoon, women’s underrepresentation, xenophobia towards migrant workers, healthcare and education deficiencies, a housing crisis and corruption, impede social progress. Political gridlock and the ongoing conflict between the administration and parliament have hindered comprehensive solutions. To manage economic impacts, Kuwait heavily utilized the General Reserve Fund due to a conflict with parliament, which prevented international borrowing.

Show country report