‘Financial Connections Between UAE and Kuwait Boost Trade and Investments’

The United Arab Emirates and Kuwait have solidified their commitment to enhancing cooperation across various sectors, with a particular focus on the financial arena. This commitment was demonstrated through the signing of key agreements and Memoranda of Understanding (MoUs) during the World Governments Summit 2024, aiming to strengthen the partnership between the two nations.

Key Agreements include a Double Taxation Avoidance Agreement, which eliminates double taxation on income and capital, simplifying cross-border investments and promoting financial integration. Additionally, the collaboration between Securities and Commodities Authorities and the tripartite agreement between stock exchanges promote cross-border investment in listed companies.

The MoU between the UAE Ministry of Finance and the Saban Al-Ahmad Centre for Giftedness and Creativity aims to foster innovation in government work, while the Governance Institute collaboration enhances corporate governance practices in Kuwaiti companies. Furthermore, agreements between investment promotion authorities and the COFE App support business expansion and attract investments into both countries.

Growing numbers showcase the increasing investment interest, with Kuwaiti shareholders in UAE listed companies rising from 3 to 40,979 between 2000 and 2022. The number of licenses granted to Kuwaiti nationals for economic activities in the UAE reached 5,745 in 2022, indicating a growing business presence.

Trade between the UAE and Kuwait reached AED22.3 billion in the first half of 2023 and AED44.8 billion for the whole year, marking a 15% increase from 2021. Kuwaiti investments in the UAE reached 7.8 million between 2016-2020, while UAE investments in Kuwait reached .745 billion, with financial and insurance activities being key areas of investment.

The strengthened financial cooperation between the UAE and Kuwait sets the stage for continued economic growth and prosperity. By fostering innovation, attracting investments, and facilitating trade, both countries are poised to benefit from this strategic partnership.