Riyadh, 15 February 2023 (TDI): The Crown Prince of Saudi Arabia, Mohammed bin Salman spoke over the phone with the Crown Prince of Kuwait, Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah.
The two leaders discussed ways to enhance cooperation and strengthen ties in various economic, political, and security fields. They also discussed regional and international issues of mutual concern.
Saudi Arabia – Kuwait Ties
Saudi Arabia and Kuwait enjoy a warm and friendly relationship based on shared history and cultural ties.
Historical links: Saudi Arabia and Kuwait have a long cultural and economic relations history. For centuries, the two countries have been linked by trade, familial, and tribal ties. They continue to have strong social and cultural relations.
Economic ties: Saudi Arabia and Kuwait are both large oil producers. They have collaborated to coordinate their oil policy to stabilize the global oil market. Saudi corporations invest in Kuwait’s banking, real estate, and telecommunications sectors.
Security partnership: Saudi Arabia and Kuwait cooperate closely to combat terrorism and maintain regional stability. Kuwait joined the Saudi-led coalition that intervened in the Yemeni civil war in 2015.
Diplomatic relations: Since 1961, Saudi Arabia and Kuwait have maintained diplomatic relations. The Middle East’s stability and security are a concern for both nations. They have collaborated on several regional and global issues.
Cultural exchange: Saudi Arabia and Kuwait have a lot of cultural interchanges because they have a similar language, history, and culture. Saudi and Kuwaiti writers, musicians, and artists interact and celebrate their shared heritage at cultural events.
Kuwait’s Investments In Saudi Arabia
Kuwait’s finance in Saudi Arabia is part of a larger strategy to expand Kuwait’s investments and minimize its oil dependence.
In recent years, the Kuwait Investment Authority (KIA) has invested in Saudi Arabia’s infrastructure, real estate, and energy projects. Kuwait is one of Saudi Arabia’s largest trading partners, with SR11 billion in trade and SR35 billion in investments.
The KIA has invested in various important Saudi Arabian projects, including the King Abdullah Economic City on the Red Sea coast and the Riyadh Metro in the capital city.
Kuwait has funded several Saudi Arabian real estate developments, including the Kingdom Tower in Jeddah and the Jabal Omar Development Company, which created significant mixed-use growth near the Grand Mosque in Mecca.
In addition, the KIA has invested in various Saudi energy projects, including the Sadara Chemical Company, a joint venture between Saudi Aramco and Dow Chemicals.
It also financed the Rabigh Refining and Petrochemical Company, a joint venture between Saudi Aramco and Sumitomo Chemicals.
KIA Investment in the Red Sea Project and NEOM
Kuwait is funding Saudi Arabia’s Red Sea Project and NEOM development initiatives. KIA invested in the project with the Saudi Public Investment Fund (PIF) with other investors.
The Red Sea Project on Saudi Arabia’s western coast is a significant tourism development project featuring luxury resorts, hotels, and other attractions to attract domestic and international tourists.
Similarly, NEOM is a future city development project that intends to create a regional center for innovation and entrepreneurship. The KIA has also invested in this initiative through a joint venture with the PIF and other partners.
Kuwait is diversifying its assets and reducing its oil dependence with these projects. Saudi Arabia is also expanding its economy and reducing its reliance on oil with the Red Sea Project and NEOM.
Both initiatives are anticipated to generate tens of thousands of jobs. It will also attract billions of dollars in investments over the next few years.
Saudi-Kuwaiti Coordination Council
In June 2021, Saudi Arabia and Kuwait signed five memorandums of agreement. They established the Saudi-Kuwaiti Coordination Council. The Council aims to strengthen economic ties and promote cooperation between the two countries.
The agreements cover a range of areas, including trade, investment, and infrastructure development. The two nations strive to integrate the Kingdom’s Vision 2030 with Kuwait’s Vision 2035.
Under the agreements, the two countries will develop joint projects in many areas, including energy, transportation, and tourism.
In addition, the contracts include provisions for the exchange of research and expertise in various fields, such as technology, healthcare, and education.
The Council is intended to serve as a platform for regular high-level meetings and consultations and the implementation of joint initiatives and projects.
The Council’s work will be overseen by the two countries’ Ministers of Foreign Affairs. It will promote cooperation and strengthen ties between the two nations.
Kuwaiti investments in Saudi Arabia demonstrate the strong relations between the two nations. Their solid ties and regional collaboration are very crucial to Gulf’s economic progress.