The United Arab Emirates (UAE) and Kuwait share strong and expanding economic and trade relations, characterized by a mutual commitment to enhance these partnerships and diversify their areas of cooperation, thereby contributing to the interests of both nations and their peoples while reinforcing sustainable economic development and promoting Gulf integration.
The ongoing economic collaboration between the two countries is reflected in the continuous growth of bilateral trade figures and an increase in bilateral agreements, supported by positive indicators that encourage mutual investments and capital flow, showcasing the robustness of the economic partnership and the confidence of the business community in both nations.
The economic ties between the UAE and Kuwait date back to before the establishment of the federation, founded on principles of mutual trust and constructive collaboration, bolstered by strong fraternal relations and a shared vision that values economic integration as a pillar for development and stability. Early initiatives, meetings, and visits between economic leaders have solidified this cooperation, creating a strong foundation for the growth of economic, trade, and investment partnerships over the decades.
The economic relationship has seen ongoing growth, particularly in bilateral trade, where the total trade volume between the two nations reached 317 billion dirhams over a span of ten years (2013 to 2022), comprising 63 billion dirhams in imports, 85.5 billion in non-oil exports, and 168.5 billion dirhams in re-exports.
In 2023, the value of non-oil trade between the countries was approximately 45 billion dirhams, projected to rise to around 50 billion dirhams in 2024.
During the first half of 2025, trade volume between the UAE and Kuwait reached 27.1 billion dirhams, marking a growth of 15% compared to the same period in 2024, and further increased to 38.8 billion dirhams in the first nine months of 2025, representing a growth rate of 7.6%.
UAE imports from Kuwait grew by 3.6% in the third quarter of 2025 compared to the same time in 2024, with re-export activities also witnessing a 4% increase during the same period.
Kuwait stands out as one of the UAE’s key trading partners, while the UAE ranks as Kuwait’s second-largest global trading partner and the top among Arab and Gulf nations, accounting for nearly 20% of Kuwait’s non-oil exports.
In 2024, 145 Kuwaiti companies joined the Dubai Chamber of Commerce, raising the total of active Kuwaiti companies registered with the chamber to 776 by the end of that year, reflecting a growth of 5.6% compared to 2023.
Recent data from the Kuwaiti Business Council in Dubai and the Northern Emirates indicates that more than 44,000 Kuwaiti investors are currently active in UAE financial markets, with over 22,000 in real estate, showing annual growth.
The council estimates the number of registered Kuwaiti companies in the UAE exceeds 1,800, not including entities in financial hubs like the Dubai International Financial Centre and the Abu Dhabi Global Market.
Furthermore, Kuwaiti investments in the UAE are estimated at around 55 billion dollars, predominantly in real estate, financial markets, and various commercial sectors.
The council emphasized that the attractive legislative environment in the UAE, proactive government measures in response to economic challenges, and successful economic diversification are significant draws for Kuwaiti investors, unveiling a plethora of investment opportunities across various fields.
UAE investments in Kuwait are concentrated in key sectors including cable manufacturing, pharmaceuticals, cosmetics, cement production, wholesale and retail trade, oil and natural gas exploration, real estate, financial services, public relations, advertising, tourism, construction, and hospitality.
Major UAE companies investing in Kuwait include Union Cement, Gulf Pharmaceutical Industries (Gulf Pharma), Abu Dhabi Investment Company, First Abu Dhabi Bank, Mashreq Bank, Damas, Damac Properties, Dana Gas, Dubai Cable Company (Ducab), Al-Futtaim Group, National Petroleum Construction Company, Agthia Group, and several airlines (Etihad, Emirates, Flydubai, and Air Arabia).
Kuwaiti investments in the UAE largely target the financial sector, insurance activities, manufacturing, real estate, information and communications, wholesale and retail trade, vehicle and motorcycle repair, mining, construction services, food and accommodation services, logistics and transportation, professional and scientific services, and administrative and support services.
Tourism exchanges between the two nations have also seen remarkable growth, as the number of Kuwaiti tourists visiting the UAE reached 381,000 by the end of 2024, while Emirati tourists in Kuwait numbered 42,236 from January to September of the same year.
The UAE and Kuwait are connected by 164 weekly flights, facilitating travel and tourism between the two countries.
To further strengthen their economic relations, the UAE and Kuwait have signed multiple agreements. Notably, in 2025, a memorandum of understanding was signed between Abu Dhabi Ports Group and the Kuwait Ports Authority aimed at developing and operating container services at Shuaiba Port. Furthermore, another memorandum regarding land transport and road assets was signed between the UAE’s Ministry of Energy and Infrastructure and Kuwait’s Ministry of Public Works, alongside an agreement in advanced technology and industry between the UAE’s Ministry of Industry and Advanced Technology and Kuwait’s Ministry of Commerce and Industry.
Last year, additional agreements included a memorandum concerning oil and gas cooperation between the UAE’s Ministry of Energy and Infrastructure and Kuwait’s Ministry of Oil, a memorandum to encourage direct investment between the UAE’s Ministry of Investment and the Kuwait Direct Investment Promotion Authority, and a memorandum on future energy and water resources between the UAE’s Ministry of Energy and Infrastructure and Kuwait’s Ministry of Electricity, Water and Renewable Energy.
In 2024, an agreement was signed addressing double taxation pertaining to income and capital taxes to prevent tax evasion and avoidance, reinforcing economic ties and promoting investment flow between the two nations.
Key financial agreements include a cooperation memorandum between the securities and commodities authorities of both countries and a trilateral cooperation agreement in securities involving the Abu Dhabi Securities Exchange, the Kuwait Stock Exchange, and the Kuwait Clearing Company, among others, contributing to elevated investment volumes and trade exchanges.
Joint economic initiatives between the UAE and Kuwait reflect the deep strategic partnership between the two nations, providing a platform for companies and investors to explore promising opportunities and enhance cooperation across diverse economic sectors.
The “Emirati Companies Exhibition and Forum,” organized by the UAE Embassy in Kuwait in April 2024, provided UAE firms the chance to discover investment and commercial opportunities within the Kuwaiti market.
The event served as a platform to highlight the productive capacities of UAE companies and their readiness to enter the Kuwaiti market with optimal products and services for consumers.
Similarly, the “Emirati-Kuwaiti Week,” held in Dubai in February 2025, aimed at strengthening economic and cultural ties between the two nations and underscoring the historical bonds that link them.
This event featured a series of activities, including a conference attended by experts and officials discussing prospective investment opportunities in various key economic sectors, providing a unique framework for exchanging ideas and advancing collaboration on best government practices and sustainable development, with a focus on investment prospects in vital areas such as energy, renewable resources, financial services, real estate development, logistics, transportation, and tourism.
The economic relationship between the UAE and Kuwait presents promising investment horizons, with increasing opportunities for collaboration across a broad spectrum of vital sectors, particularly in renewable energy, financial services, real estate, logistics, transportation, and tourism. Both nations offer a stable and attractive economic environment for investors, featuring measures aimed at enhancing capital flow and broadening mutual investments.