Today's Edition
ISIDORA CIRIC (ABU DHABI)
A commercial relationship can look quiet from the outside, even while it is doing heavy lifting in the background. The UAE and Kuwait have one of those relationships, where the numbers keep moving in the same direction, and the institutions around them keep getting busier.
Last year, non-oil trade between the two countries reached Dh54.5 billion, up from about Dh50 billion in 2024, recording a 9.1% rise, according to official data from the Ministry of Economy and Tourism.
The data also showed non-oil trade moving from Dh38.5 billion in 2021 to Dh44.1 billion in 2022 and Dh45.72 billion in 2023, reaching nearly Dh50 billion in 2024, before last year's increase. Over a much wider window, total non-oil trade increased fivefold between 2010 and 2025, reaching around Dh513.5 billion.
Trade That Holds Its Ground
What matters in the longer series is not only the direction, but the ability to recover and accelerate. Trade stood at Dh7.42 billion in 2010, then soared to Dh19.4 billion in 2011 and Dh20 billion in 2012. It continued to rise to Dh23.3 billion in 2013, Dh25.7 billion in 2014 and Dh26 billion in 2015, before stabilising around the mid-20s in 2016 (Dh25.8 billion) and 2017 (Dh25.4 billion).
A higher plateau followed in 2018 with Dh39.3 billion and 2019 with Dh38.9 billion, then a drop to Dh30bn in 2020, before the rebound to Dh38.5bn in 2021, Dh44.1 billion in 2022 and Dh45 billion in 2023.
That rebound has since become the platform for today's growth, with 2025 showing not only higher overall trade but meaningful movement inside the components. UAE imports from Kuwait rose by 15.1% in 2025, surpassing Dh13 billion. Meanwhile, re-exports increased by 1.2%, and UAE non-oil exports to Kuwait grew by 19.6%.
Today, the UAE is Kuwait's top Arab partner and second-largest global partner, accounting for around 20% of its non-oil exports. In 2024, trade with the UAE represented about two-thirds (75%) of Kuwait's trade with GCC states, and official projections point to further growth in 2026.
Capital, Companies and Coordination
The investment relationship runs in parallel and, in some respects, explains how trade links become durable. By the end of 2024, mutual investments exceeded $10 billion, with more than 60% of that total flowing from the UAE into Kuwait.
The UAE is also the third-largest global investor in Kuwait, contributing more than 6% of the total stock of inward foreign direct investment. Kuwait, meanwhile, ranks ninth among investors in the UAE, accounting for about 3% of inward FDI and standing second among Arab countries.
Emirati investments in Kuwait are concentrated across a broad mix of sectors. These include the manufacturing of caps, pharmaceuticals, cosmetics and cement, alongside wholesale and retail trade. Capital is also directed into oil and natural gas exploration, real estate activities, the automotive and telecommunications sectors, public relations, marketing and advertising, tourism and travel, and construction.
Kuwaiti investments in the UAE are similarly diversified. They are concentrated in machinery, insurance, manufacturing and real estate, as well as information and communications. Other key areas include wholesale and retail trade, vehicle and motorcycle repair, mining, construction, accommodation and food services, transportation and storage, professional, scientific and technical activities, and administrative and support services.
Business formation is one of the clearest indicators that the relationship is not only government-to-government. By the end of 2025, the number of UAE-based companies with Kuwaiti ownership had climbed to 4,311, a gain of about 16.2% compared with 2024.
Earlier this month, the UAE also hosted the UAE-Kuwait Economic Forum as part of "UAE and Kuwait: Brothers Forever" Week, positioning the event as a working platform to strengthen economic, trade and investment mechanisms, and build practical pathways for the private sector.
The forum was inaugurated by Dr Thani bin Ahmed Al Zeyoudi, Minister of Foreign Trade and Khalifa Abdullah Al-Ajeel, Kuwait's Minister of Commerce and Industry.
Dr Al Zeyoudi described the forum as a marker of ambition, linking it to diversification and private sector enablement, with an emphasis on building an "integrated model" that expands trade and investment horizons.
"The UAE and the sisterly State of Kuwait share firmly rooted fraternal relations that form a solid foundation for developing deeper and more sustainable trade and investment cooperation," he said.
"This supports the building of high-quality partnerships between the private sector and business communities in both countries, opening broader horizons for investors and entrepreneurs, and enhancing supply chain integration across vital sectors, including trade, industry, the new economy, renewable energy and logistics services."
