Today's Edition
Khaled Al Khawaldeh (Abu Dhabi)
Established in 1972, the relationship between the UAE and Kuwait has served as a model of Gulf unity and strategic cooperation for several decades.
Since the early days of the UAE’s formation, this bilateral alliance has evolved into a formidable partnership that has reflected not only the mutual economic interests of the two Gulf neighbours, but also a shared commitment to regional stability.
Over the years, the two countries have worked in tandem to deepen both economic and diplomatic ties, overcoming various crises and moving in lockstep to realise a vision of a more prosperous region.
Economic and Diplomatic Ties
According to statistics from the Federal Authority for Identity, Citizenship, Customs, and Port Security, the total trade between the UAE and Kuwait amounted to Dh44.8 billion in 2023, growing 15% on 2022 numbers and is expected to continue to grow in 2024.
This underpins what is considered a cornerstone of the burgeoning economic relationship that has been marked by several collaborative efforts between governments and major institutions in both countries.
These include a “Double Taxation Avoidance Agreement” to prevent tax evasion, a “Cooperation Agreement” between their Securities and Commodities Authorities to streamline financial market practices, and a partnership between the Governance Institute of the Dubai International Financial Centre Authority (DIFCA) and the Kuwait Capital Markets Authority to advance corporate governance.
A memorandum of understanding between Abu Dhabi’s Department of Economic Development (ADIO) and Kuwait’s Direct Investment Promotion Authority supports investment initiatives. Additionally, a securities cooperation agreement among the Abu Dhabi Securities Exchange (ADX), Kuwait Stock Exchange (KSE), and Kuwait Clearing Company (KCC) was in place to cement collaboration in regional capital markets.
All in all, these agreements helped facilitate Dh3.07 billion of investment from the UAE into Kuwait and Dh1.745 billion vice versa between 2016 and 2020, with a deepening of the economic links expected in the future.
Diplomatic Links
As key members of the Gulf Cooperation Council (GCC), the UAE and Kuwait often move in lockstep on major international and regional issues. This has ranged from resolutions to regional conflicts to agreeing on policies to further the prosperity and security of both nations.
These ties have been reinforced by numerous high-level visits, notably the visit of the late Sheikh Khalifa bin Zayed Al Nahyan to Kuwait on March 28, 2013, his first official visit as UAE President. A key milestone was the establishment of the Joint Committee for Bilateral Cooperation, with its agreement signed on April 24, 2006, in Kuwait, followed by the inaugural meeting on March 1, 2008, in Abu Dhabi, led by His Highness Sheikh Abdullah bin Zayed Al Nahyan, Deputy Prime Minister and Foreign Minister, and Sheikh Dr. Mohammad Sabah Al-Salem Al-Sabah, Kuwaiti Deputy Prime Minister. This committee underscored the depth of the UAE-Kuwait partnership and has since facilitated the signing of several MoUs between the two nations.
Cultural Collaboration: A Deepening Connection
Underpinning these relations is undoubtedly the deep cultural ties based on the shared heritage and values of both countries. Over the years, both countries have taken part in significant cultural exchanges, sending high-level representatives to attend and celebrate each other’s historic and social events. Perhaps this camaraderie was best exemplified by the gesture by UAE astronaut Hazzaa Al Mansoori, who, while aboard the International Space Station in September 2019, posted a photograph of Kuwait from space. In his tweet, Al Mansoori congratulated Kuwait on its 59th National Day, expressing well-wishes for continued peace and prosperity - a testament to the profound respect and affection between the two nations.
