Kuwait inks deal with China to build new port

Kuwait has signed a $4.1 billion deal with China to complete a port project, a move the government says will help the country expand its presence in regional and global trade, according to Algerian government-friendly outlet AL24 News via AFP on December 23rd.  

The deal covers the construction of the Mubarak Al-Kabeer Port on Boubyan Island. Kuwait’s State Audit Bureau, the government body that oversees public funds, said the engineering, procurement and construction contract is worth 1.28 billion Kuwaiti dinars, which is $4.164 billion.

The signing ceremony was attended by Prime Minister Sheikh Ahmad Al-Abdullah Al-Ahmad Al-Sabah, according to reports from state media. 

Once completed, the Mubarak Al-Kabeer Port could play a central role in Kuwait’s long-term economic plans. Speaking at the event, Kuwait’s prime minister said the port would help increase Kuwait’s share in regional and international trade, strengthening its position in international supply chains. The Boubyan Island project is positioned to facilitate a major logistics and shipping hub.

China’s acting charge d’affaires in Kuwait, Liu Xiang, said the agreement forms part of China’s Belt and Road Initiative, which is a global infrastructure programme. 

Kuwait and China have steadily expanded economic ties in recent years. According to Arab News, in 2023, the two countries signed seven memorandums of understanding covering a range of projects. One of the agreements was for the completion of the Mubarak Al-Kabeer Port, with other agreements covering housing developments, as well as water treatment and renewable energy projects.

China has increased its focus on the Middle East as part of its broader global strategy, with energy-rich Gulf states seen as key partners. For Kuwait, cooperation with China is part of a wider push to attract foreign investment and develop sectors beyond oil, including transport, trade and logistics.

Additionally, it was reported on November 10th, that the Chinese manufacturing company Boway Alloy had planned to invest $150 million in Morocco to set up a plant in Nador. China has also been eyeing closer diplomatic and economic ties with countries like Saudi Arabia and Algeria. 

AL24 News via AFP, Arab News, Maghrebi.org