KUWAIT CITY: Kuwait’s ruler has warned that declines in the oil price were damaging the economy of the energy-rich Gulf state, urging lawmakers to “stop squandering resources” and to diversify revenues.
“We are witnessing a new cycle of low oil prices as a result of economic and political factors that have hit the global economy and started to negatively impact our national economy,” Sheikh Sabah Al-Ahmad Al-Sabah said in a speech to open the new parliamentary term.
The emir called on the government and parliament to “safeguard our oil and fiscal wealth.”
“You have the responsibility to stop squandering resources, rationalize spending and direct subsidies to reach those who need it... without impacting the standard of living,” he said.
He also called for stepping up plans to reduce Kuwait’s dependence on oil revenues by diversifying the economy.
“I have repeatedly called ... for establishing productive economic activities to create jobs for youth, diversify the resources of income of the country and reduce national economic dependence on oil,” he said.
Oil prices have lost more than a quarter of their value since June, hitting the state coffers of energy-dependent countries like Kuwait.
Oil income accounts for about 94 percent of Kuwaiti revenues. But Kuwait has piled up massive fiscal reserves of more than $500 billion during the past 15 years due to high oil prices.
Earlier this month, Kuwait began reducing public subsidies, estimated at $18 billion, on diesel, kerosene and aviation fuel. It is considering similar measures for electricity, water and petrol.
Public spending has risen more than three-fold in Kuwait over the past seven years, with the overwhelming majority of the increase going to wages and subsidies.
Falling oil price ‘hurting Kuwait economy’
Falling oil price ‘hurting Kuwait economy’
MEA to see $3tn real estate, infrastructure pipeline by 2030, JLL says
RIYADH: The Middle East and Africa region is set to see a $3 trillion pipeline of real estate and infrastructure projects between 2026 and 2030, driven by tight occupancy levels and strong investor demand, an analysis showed.
In its latest report, professional services firm JLL said low vacancy and strong absorption rates are among the key drivers accelerating the sector’s transformation in the region, easing supply constraints and supporting rental and sales growth.
The steady momentum in the region’s real estate and infrastructure sectors underscores the ongoing economic diversification efforts pursued by countries across the region.
In July, real estate consultancy Knight Frank said the Kingdom’s construction output value is expected to reach $191 billion by 2029, representing a 29.05 percent increase from 2024, driven by residential development, ongoing giga-projects and rising demand for office space.
James Allan, CEO, UAE, Egypt and Africa at JLL, said: “Strong market fundamentals boosted the Middle East and Africa real estate market in 2025, setting the momentum for sustained performance across asset classes in 2026.”
He added: “We saw record residential transactions, double-digit growth in industrial and logistics rents, and an exceptionally tight 1 percent office vacancy rate in 2025, driven by professional talent migration, substantial private investment, and strategic infrastructure development.”
According to the report, the delivery of key infrastructure projects in the region will further catalyze new real estate developments and attract increased private sector participation.
In the evolving capital landscape, cross-border capital and alternative financing mechanisms are projected to play an increasingly central role, particularly in greenfield developments where investment stock remains limited.
The report added that improved market transparency across the region, driven by regulatory changes, is also expected to bolster investor confidence in the Middle East and Africa markets.
JLL said the UAE remains central to this growth trajectory, with projected project cash flows of $795 billion from 2026 to 2030, including $470 billion allocated to real estate development.
In November, CBRE echoed similar views on the region’s real estate sector, saying Saudi Arabia’s ongoing economic diversification push is energizing its property market, with office rents in Riyadh climbing 15 percent year on year and occupancy reaching 98 percent by the end of the third quarter of 2025.
CBRE added that the strong performance in Saudi Arabia’s office sector is buoyed by the Kingdom’s non-oil economic expansion and an influx of multinational companies relocating regional headquarters to Riyadh.
