Kuwait achieves record-breaking $16 billion in foreign direct investment amid war-torn landscape.
Amidst the threat of Iranian drone and missile attacks, the Kuwaiti government officially announced on Saturday (July 25) that it has signed a $16 billion (S$20.6 billion) cooperation agreement with three of the world's top asset management giants, Blackstone, Brookfield, and KKR, for oil export pipeline infrastructure.
This deal is not only the largest foreign direct investment (FDI) in Kuwait's history, but also the first time the country has introduced long-term international capital into the midstream energy infrastructure sector, marking a major breakthrough for Kuwait in attracting investment in the Gulf region.
According to Bloomberg, the three major international investment giants will form a joint venture, sharing a 49% stake, while a subsidiary of Kuwait National Oil Company (KPC) will hold the remaining 51% controlling stake.
The joint venture will lease the usage rights to 13 core oil and gas export pipelines from KPC's subsidiaries. The transaction is expected to generate upfront revenue of US$7.85 billion for KPC immediately.
In addition, the KPC subsidiary has the right to operate and maintain these pipelines for a period of 20.5 years. During this period, the KPC subsidiary will pay the joint venture a volume-based tariff.
The plan is to increase crude oil production to 4 million barrels per day by 2035. According to reports, KPC will use the proceeds from the transaction to support its investment plans, including increasing crude oil production to 4 million barrels per day by 2035.
The agreement was reached against a very special backdrop. Since the renewed outbreak of conflict between the US and Iran on July 7, 2026, Kuwait, a key US ally in the Gulf region, has become a primary target for Iranian retaliatory attacks .
In recent months, several military bases, power plants, and desalination plants in Kuwait have suffered varying degrees of damage. Earlier this year, the KPC headquarters in the capital and two large oil refineries were also directly attacked.
With the Strait of Hormuz effectively closed , exports were blocked, leading to overflowing oil inventories in Kuwait. This forced the country to drastically cut crude oil production, with daily output falling to its lowest level since the Iraqi invasion of Kuwait in the 1990s.
Despite this, Kuwait's financial credit remains strong. Just on Wednesday (22nd), Kuwait successfully raised $6 billion through the issuance of three tranches of dollar bonds, with exceptionally enthusiastic market demand.
Source: [Lianhe Zaobao] (https://www.zaobao.com/finance/world/story20260725-9420414)