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Beyond Congratulations: The Economic Powerhouse of UAE-Kuwait Relations in 2026

 



When Leadership Translates into Livelihoods

When President His Highness Sheikh Mohamed bin Zayed Al Nahyan dispatched his congratulatory message to H.H. Sheikh Mishal Al Ahmad Al Jaber Al Sabah, Emir of Kuwait, on the occasion of Kuwait's National Day and Liberation Day, he was affirming more than diplomatic courtesy. He was acknowledging an economic partnership that has grown into one of the most dynamic in the Middle East, touching the lives of hundreds of thousands of citizens and businesses in both countries.

Alongside the UAE President, His Highness Sheikh Mohammed bin Rashid Al Maktoum and His Highness Sheikh Mansour bin Zayed Al Nahyan sent similar messages to the Kuwaiti Emir and Prime Minister H.H. Sheikh Ahmed Abdullah Al-Ahmad Al-Sabah. These messages arrive at a time when the economic indicators tell a compelling story of integration, growth, and shared prosperity.



The Trade Corridor That Defines Gulf Cooperation

AED 317 Billion: A Decade of Growth

The numbers coming out of the UAE-Kuwait economic relationship are staggering. Over the decade spanning 2013 to 2022, total trade exchange between the two nations reached AED 317 billion ($86.3 billion) . This figure represents not just transactions, but the deep integration of two economies that have learned to work as one.

The momentum has only accelerated in recent years. By 2024, non-oil trade exchange hit approximately AED 50 billion . The first half of 2025 saw this trend continue with AED 27.1 billion in trade, representing a 15 percent growth compared to the same period in 2024 . By the end of the third quarter of 2025, the figure climbed to AED 38.8 billion, proving that the bilateral trade corridor remains one of the most active in the Middle East.

Speaking at the sixth session of the UAE-Kuwait Joint Higher Committee in January 2026, Sheikh Abdullah bin Zayed Al Nahyan confirmed that "economic and trade relations between the two countries have witnessed sustained growth, reaching their highest level ever in 2024, with total trade exceeding US$13.5 billion" .

Strategic Positioning: UAE as Kuwait's Gateway to the World

The UAE has solidified its position as Kuwait's second-largest trading partner globally and its primary partner within the Arab and GCC worlds . This is not merely a statistical achievement—it represents the UAE's role as Kuwait's gateway to global markets.

Currently, the UAE accounts for nearly 20 percent of Kuwait's total non-oil exports . Even more remarkably, two-thirds of Kuwait's trade with GCC countries is conducted with the UAE alone . Sheikh Abdullah bin Zayed emphasized this point, noting that "the UAE is the world's leading destination for Kuwait's non-oil exports".

Investment Flows: The Lifeblood of Partnership

Kuwaiti Capital in the UAE

Kuwaiti investors have found a welcoming and profitable home in the UAE. The numbers tell a compelling story:

  • 44,000+ Kuwaiti investors in UAE capital markets

  • 22,000+ Kuwaiti investors in UAE real estate

  • $55 billion: The estimated value of Kuwaiti investments in the UAE, primarily concentrated in real estate, hotels, and finance 

The flow of Kuwaiti businesses into the UAE continues unabated. In 2024 alone, 145 new Kuwaiti companies joined the Dubai Chamber of Commerce, bringing the total number of active Kuwaiti firms in Dubai to 776 . This growth reflects Kuwaiti confidence in the UAE's business ecosystem and its role as a launchpad for regional expansion.

Emirati Footprint in Kuwait

The relationship is decidedly two-way. Major UAE entities have established significant operations across Kuwait's economic landscape:

  • Etihad Airways and Emirates connect the two nations with over 164 weekly flights 

  • DP World partnered with the Kuwait Ports Authority to develop container operations at Shuaiba Port 

  • Abu Dhabi First Bank (FAB) maintains a strong presence in Kuwait's financial sector

  • Masdar is involved in renewable energy projects, aligning with both nations' sustainability goals 

Emirati investments span critical Kuwaiti sectors including cable manufacturing (Ducab), pharmaceuticals (Julphar), cement (Union Cement), oil and gas exploration, and real estate development (DAMAC).

2025-2026: A Legislative Turning Point

The Double Taxation Agreement

The year 2025 marked a legislative turning point in UAE-Kuwait economic relations. The Double Taxation Agreement initiated in 2024 became fully operational in 2025, effectively preventing tax evasion while facilitating the free flow of capital between the two nations . This agreement removed a significant barrier to cross-border investment and has been credited with accelerating business formation and trade.

Five New MoUs: The 2026 Framework

During the sixth session of the UAE-Kuwait Joint Higher Committee held in Kuwait City in January 2026, Sheikh Abdullah bin Zayed Al Nahyan and Kuwaiti Foreign Minister Abdullah Ali Al Yahya witnessed the signing of five memoranda of understanding and executive programmes that will shape bilateral cooperation for years to come .

These agreements cover:

  1. Consumer Protection and Commercial Control: Establishing mechanisms to protect consumers in both countries and ensure fair commercial practices

  2. Tourism Cooperation (2026–2028): A three-year programme to boost tourism flows and develop joint tourism products

  3. Standardization Activities (2026–2028): Aligning industrial and product standards to facilitate trade

  4. Promoting Integrity and Combating Corruption: Joint efforts to ensure transparent business practices

  5. Public Sector Oversight and Auditing: Sharing best practices in governance and accountability 

These agreements represent the institutional framework that will support the next phase of economic integration.

Sectoral Deep Dive: Where Integration Runs Deepest

Financial Services and Banking

The UAE and Kuwait enjoy deep integration in financial services. Abu Dhabi First Bank (FAB) has established itself as a major player in Kuwait, while Kuwaiti investors maintain a significant presence in UAE capital markets . The UAE's banking sector showed robust performance in early 2026, with FAB recording 24% year-on-year growth in net income for 2025.

Kuwait's domestic credit growth remained robust in 2025, expanding 7.6% year-on-year, much higher than the growth in 2024, driven by a surge in lending to banks and financial institutions and business credit . This credit expansion supports the business activity that fuels UAE-Kuwait trade.

Real Estate: A Preferred Destination

Kuwaiti investors have long favored UAE real estate, and the numbers bear this out. With 22,000+ Kuwaiti investors in UAE property and investments concentrated in this sector, real estate remains a cornerstone of the investment relationship.

This preference aligns with broader market trends. Kuwait's own real estate sector reached an all-time high in 2025, growing by 26% year-on-year to KD 4.4 billion . This growth, particularly in the investment segment which expanded by 39%, suggests that Kuwaiti investors understand real estate markets well and apply that expertise to their UAE investments .

Industry and Advanced Technology

Collaborative agreements established in 2025 created a joint framework between the UAE Ministry of Industry and Kuwait's Ministry of Commerce to align industrial standards and promote the adoption of advanced technology, particularly in artificial intelligence.

This cooperation positions both nations to compete in the global technology economy. Sheikh Abdullah bin Zayed expressed aspirations for "further cooperation in future-oriented sectors such as industry, renewable energy, infrastructure, artificial intelligence and advanced technologies".

Energy and Sustainability

Masdar's presence in Kuwait's renewable energy sector reflects a shared commitment to sustainability and energy transition . As both nations pursue ambitious net-zero targets, this cooperation is expected to deepen, creating new opportunities for Emirati clean technology companies in the Kuwaiti market.

Connectivity: The Physical Backbone

Air Travel: 164 Weekly Flights

The economic relationship rests on a foundation of physical connectivity. With over 164 weekly flights between the two countries, business travelers and tourists move seamlessly between UAE and Kuwait . This air bridge, maintained by Etihad Airways, Emirates, and other carriers, ensures that the movement of people keeps pace with the movement of capital and goods.

Tourism Flows

By the end of 2024, the number of Kuwaiti tourists visiting the UAE reached 381,000 . The "Brothers Forever" week in January-February 2026 likely boosted these numbers further, as Kuwaiti visitors were welcomed with special programs and souvenirs.

Tourism is not a one-way street. Thousands of Emiratis visited Kuwait during 2024-2025, particularly for business and cultural exchange events like the UAE-Kuwait Week held in Dubai in February 2025 . The newly signed Tourism Cooperation Programme for 2026–2028 aims to increase these flows through joint marketing and product development.

The Human Dimension: Beyond the Numbers

Healthcare Cooperation

Perhaps the most profound measure of bilateral cooperation lies in the healthcare sector. Since 2021, the UAE and Kuwait have collaborated on organ transplant exchanges, resulting in 153 organ transplants for recipients from the State of Kuwait . Sheikh Abdullah bin Zayed highlighted this achievement as "reflecting an advanced level of coordination, integration and operational readiness between the two sides".

This life-saving cooperation demonstrates that UAE-Kuwait relations transcend economics—they touch the most fundamental aspects of human welfare.

Educational and Cultural Ties

Sheikh Abdullah bin Zayed highlighted "the long-standing educational and cultural cooperation between the two countries, which began even before the establishment of the Union" . He recalled "Kuwait's support for these sectors and for the people of the UAE during the early stages of its development journey," stressing that "this support and Kuwait's historic stances remain deeply appreciated by the UAE's leadership and people".

The UAE-Kuwait Week featured the first-ever UAE-Kuwait Women's Forum, highlighting the contributions of Emirati and Kuwaiti women in nurturing historic ties . Sessions covered women's roles in technology, media, tourism, logistics, renewable energy, climate action, peace, security, and sports, demonstrating "the many ways in which women contribute to the development and the future of both nations".

Looking Ahead: The Next Decade of Partnership

As Kuwait celebrates its National and Liberation Days in 2026, the UAE-Kuwait economic partnership stands at an inflection point. The legislative framework is in place through the Double Taxation Agreement and new MoUs. The infrastructure of connectivity is robust with over 164 weekly flights. The investment flows are substantial at $55 billion and growing. The sectoral cooperation is deepening in advanced technology, renewable energy, and healthcare.

The question is not whether the partnership will grow, but how fast. With non-oil trade growing at 15% annually and new agreements opening additional avenues for cooperation, the AED 317 billion recorded over the past decade may soon look modest by comparison.

Conclusion: A Model for Regional Cooperation

The UAE-Kuwait economic partnership stands as a model for what Gulf cooperation can achieve. Rooted in history, strengthened by leadership vision, and validated by hard economic data, this relationship demonstrates that when nations work together, the whole becomes greater than the sum of its parts.

As President Sheikh Mohamed bin Zayed and the UAE leadership extend their congratulations to Kuwait on its national occasions, they do so with the knowledge that these words carry weight—the weight of AED 317 billion in trade, $55 billion in investments, 164 weekly flights, and 153 lives saved through medical cooperation. This is the substance behind the sentiment, the economics behind the congratulations.

For businesses, investors, and citizens of both nations, the message is clear: the UAE-Kuwait partnership is not just enduring—it is accelerating.
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