Kuwait has signed a $4.1 billion agreement with China to complete construction of the strategically important Mubarak Al-Kabeer Port. The deal marks a major step in Kuwait’s efforts to diversify its economy and strengthen its role in regional and global trade. The project is located on Boubyan Island, a key site near major shipping routes in the Gulf.
The agreement comes as Kuwait looks beyond oil revenues. Authorities aim to expand logistics, transport, and trade infrastructure. The port is expected to play a central role in these plans.
Contract Details and Official Announcement
Kuwait’s State Audit Bureau, the government body that oversees public spending, confirmed the contract on Monday. The bureau stated that the engineering, procurement, and construction (EPC) contract for the port will cost 1.28 billion Kuwaiti dinars, equivalent to $4.164 billion.
The contract was formally signed during an official ceremony. Prime Minister Sheikh Ahmad Al-Abdullah Al-Ahmad Al-Sabah attended the event. State media reported that the ceremony marked the inking of the EPC contract for completing the port’s construction.
Government officials described the project as a national priority. Oversight mechanisms will monitor spending and progress to ensure transparency.
Strategic Importance of Mubarak Al-Kabeer Port
Speaking at the ceremony, the prime minister highlighted the port’s long-term value. He said the project will enhance Kuwait’s position in regional and international trade. It will also strengthen the country’s role in the global supply chain.
Mubarak Al-Kabeer Port is designed to become a major logistics hub. Its location on Boubyan Island gives it access to key maritime corridors. Once completed, the port is expected to support cargo handling, transit trade, and economic activity linked to shipping and logistics.
The project also aligns with Kuwait’s broader development vision. Authorities hope it will create jobs and attract foreign investment.
China’s Role and Belt and Road Initiative
China is a key partner in the project. Liu Xiang, China’s acting charge d’affaires, said the agreement reflects cooperation under the Belt and Road Initiative (BRI). The initiative aims to expand trade and infrastructure links across Asia, the Middle East, Africa, and Europe.
China has increased its focus on the Middle East in recent years. Large-scale infrastructure projects form a core part of this strategy. The Mubarak Al-Kabeer Port deal adds to China’s growing footprint in the region.
Growing Kuwait–China Cooperation
Kuwait and China have deepened cooperation in recent years. In 2023, the two countries signed seven memoranda of understanding. These covered projects in ports, housing, water treatment, and renewable energy. Mubarak Al-Kabeer Port was a key component of those agreements.
Officials from both sides view the partnership as mutually beneficial. Kuwait gains infrastructure and trade capacity. China strengthens economic ties and regional connectivity.
With the new contract signed, construction is expected to move forward at a faster pace. The port is set to become one of Kuwait’s most important economic assets in the coming years.
