SARA ALZAABI (ABU DHABI)
From trade exchanges dating back to the pre-Union era to expanding economic cooperation across multiple sectors, the UAE and Kuwait have grown together, supporting one another over the years.
Their shared milestones in strengthening trade and accelerating growth are proof of what can be achieved when relations are built on trust, genuine brotherhood, and a belief that economic integration is key to development and stability.
Decades before the Emirates came together as a Union, Kuwaiti merchants had already recognised the land’s potential. Many settled in Dubai, particularly in the Murshid Souq area, contributing to the timber trade, real estate, and entertainment. In fact, it was a Kuwaiti merchant who opened the emirate’s first known cinema in the 1950s.
These early ties were reinforced with the founding of the UAE and the formalisation of diplomatic relations.
The UAE’s Founding Father, the late Sheikh Zayed bin Sultan Al Nahyan, and the late Sheikh Jaber Al-Ahmad Al-Sabah of Kuwait brought the two nations closer. And their historic meeting in 1973 cemented a relationship that continued to grow over time.
A major turning point in these ties came in 2006 with the establishment of the Joint Higher Committee for Bilateral Cooperation. This high-level body meets regularly to steer initiatives and monitor progress across a wide range of partnerships. Successive sessions have resulted in several agreements advancing strategic cooperation across sectors, from economy to culture, and education, among other key sectors. Telecommunications, cybersecurity, and information technology have also emerged as priority areas, underscoring the forward-looking nature of the partnership.
These frameworks have translated longstanding goodwill into practical collaboration, particularly in trade and investment, which have expanded steadily over the past decade.
Consistent efforts and strategic partnership are yielding tangible results, as reflected in recent trade figures. Today, the UAE is Kuwait’s top Arab trading partner, and its second-largest globally. Non-oil trade reached Dh46 billion in 2023 and rose to approximately Dh50 billion in 2024. In the first nine months of 2025 alone, bilateral trade surpassed Dh38.8 billion, up 7.6% compared to the same period in 2024.
The UAE is also the world’s largest destination for Kuwait’s non-oil exports, accounting for more than 20% of the total, while ranking among Kuwait’s most significant import markets worldwide.
Investment flows have remained robust too, with Kuwaiti direct investment in the UAE reaching $3.9 billion (Dh14.3 billion) by the end of 2022. Kuwait ranks ninth globally among the top investing countries in the UAE, contributing 3% to total foreign direct investment inflows.
The strength of this partnership lies not only in its scale but in its diversity. Kuwaiti investments in the UAE span key sectors, led by finance and insurance (29.1%), telecommunications and information technology (17.2%), real estate (15.1%), commercial activities (14%), and industry (10.9%).
While historic ties have laid a solid foundation, it is a shared, forward-looking vision that continues to propel the relationship. With the We the UAE 2031 vision and Kuwait Vision 2035 as guiding north stars, both countries are determined to seize new opportunities and accelerate sustainable growth, hand in hand.