UAE and Kuwait: Strategic Economic Partnership Reaches $14 Billion Annually

Marwa Al-Juaidan, Acting Undersecretary of Kuwait's Ministry of Commerce and Industry, announced that trade exchange between the UAE and Kuwait has reached $14 billion annually. Over 170 weekly flights connect the two countries, reflecting the depth of their strategic economic partnership. Bilateral relations are supported by a comprehensive framework of qualitative agreements, most notably the double taxation avoidance agreement, which stimulates investments and facilitates capital flows.

According to the latest official data, trade between the two countries totaled AED 38.8 billion during the first nine months of 2025, marking a 7.6% increase compared to the same period in 2024. Kuwait ranks among the UAE’s top trading partners, while the UAE is Kuwait’s second-largest global trading partner and its leading Arab and Gulf partner, accounting for around 20% of Kuwait’s non-oil exports.

The dense network of air travel, including 29-30 weekly Emirates flights between Dubai and Kuwait and services from Flydubai, Kuwait Airways, Jazeera Airways, and Air Arabia, plays a crucial role in supporting trade, tourism, and investment. In April 2025, Emirates signed a memorandum of understanding with Kuwait Airways to enhance their interline agreement, offering travelers more connectivity options.

In February 2024, the UAE and Kuwait signed a double taxation avoidance agreement during the World Government Summit in Dubai, aiming to boost economic ties and encourage investments.

From 2019 to 2023, UAE investments in Kuwait reached approximately AED 4 billion ($1.087 billion), while Kuwaiti investments in the UAE totaled AED 715.5 million. The UAE hosts 1,702 registered Kuwaiti trademarks, 13 commercial agencies, and 15 Kuwaiti companies, underscoring Kuwait’s strong presence in the UAE market. In 2024, 145 Kuwaiti companies joined the Dubai Chamber of Commerce, raising the total to 776 active Kuwaiti firms by year-end, a 5.6% growth over 2023.

Kuwaiti investments in the UAE span finance, insurance, manufacturing, real estate, ICT, wholesale and retail trade, mining, and construction. The financial sector is a key area for UAE investments in Kuwait, with the UAE hosting two branches of Kuwaiti banks.

Recent strategic agreements include a contract between Ducab Cables and Kuwait’s Ministry of Electricity in January 2024 and a memorandum of understanding between EDGE Group and Kuwait’s Ministry of Defense in September 2024. Prospects for cooperation remain strong, with further growth in exports and trade anticipated in 2026 and the second edition of the UAE Companies Exhibition and Forum scheduled for April 2026 in Kuwait, following the success of the 2024 event.

Marwa Al-Juaidan’s remarks highlight the strategic economic integration between the UAE and Kuwait, built on advanced connectivity, comprehensive agreements, and growing investment flows, positioning their relationship among the strongest economic partnerships in the Gulf region.