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Kuwait, Saudi Arabia cherish deep-rooted economic ties

KUWAIT: The State of Kuwait and Kingdom of Saudi Arabia are tied with distinguished deep-rooted relations, especially in the economic field. The upcoming visit of His Highness the Crown Prince Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah today to Saudi Arabia comes to boost bilateral ties to wider domains and levels of cooperation, which would positively reflect on the bilateral relations and Gulf Cooperation Council (GCC) countries’ common interests.

Kuwaiti exports to Saudi Arabia climbed during the COVID-19 pandemic by 11.3 percent, and Saudi ranked first as a commercial partner for Kuwaiti exports during the last quarter of 2020, at a time of closure of international economies. Local exports to Saudi Arabia climbed by 11.3 percent to reach KD 59 million (around $194.7 million) compared to the same period of 2019 out of total Kuwaiti non-oil exports of a value of KD 358.8 million (around $1.1 billion), according to the Kuwait’s Central Statistical Bureau.

Kuwait’s total exports to Saudi in 2020 reached KD 205 million (around $676.5) compared to KD 197 million (around $650 million) during 2019, whereas Saudi exports to Kuwait reached KD 504.5 million (around $1.6 billion) compared to KD 629.6 million in 2019. Cooperation between the two nations is not only restricted to governmental bodies, but also between the private sectors, as this type of cooperation was set after signing a memorandum of understanding in 2005.

It was signed between the Council for Saudi Chambers of Commerce and Industry and the Kuwait Chamber of Commerce and Industry, aiming at boosting both economies and increasing business exchange between Kuwait and Saudi. In the oil sector, bilateral relations witnessed a new dimension when Saudi Minister of Energy Prince Abdulaziz Bin Salman and Kuwait’s Minister of Oil, Minister of Electricity and Water Khaled Al-Fadhel on Dec 25, 2019 allowed the resumption of oil production operations in Al-Khafji joint area.

They signed an agreement affiliated to the two agreements of dividing the divided zone and the submerged area adjacent to the divided zone between the two countries. The agreement came upon the instructions of the two wise political leaderships to end this file in order to come out with a stable, sustainable future vision.

Kuwaiti-Saudi coordination played a great role in the stability of international oil prices and markets through the joint work in the so-called OPEC+. In OPEC+, both nations contributed to maintaining stable supplies of energy in a way that protects producers’ and consumers’ rights equally during the tough circumstances the international economy suffered during the COVID-19 pandemic, taking into consideration that a large quantity of energy is available in the international markets.

Kuwait, under the leadership of His Highness the Amir Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah and His Highness the Crown Prince Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah is working on the development of economic process in the country and boosting commercial relations between Kuwait and the kingdom. The ties between Kuwait and the kingdom reached high level of cooperation; boosted on various levels to serve the interests of GCC countries.

Kuwait and Saudi possess a developmental vision for their economies reflected by the New Kuwait 2035 and 2030 Saudi vision, which would positively affect the prosperity of the whole region. Since the establishment of GCC in 1981, Kuwait and Saudi Arabia are tied by several cooperation agreements and projects in various sectors. – KUNA


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