Kuwait reengages with China to revive Gulf port project

As other countries in the Middle East are preparing the launch of major infrastructure projects, Kuwait is working with China to revive a ten-year old port project in the Persian Gulf.
The image shows the Shuwaikh Port, located in Kuwait City. | Photo: Gustavo Ferrari/AP/Ritzau Scanpix
The image shows the Shuwaikh Port, located in Kuwait City. | Photo: Gustavo Ferrari/AP/Ritzau Scanpix
By Fiona MacDonald, bloomberg news

Kuwait’s revived plans to finish a port meant to act as a major trading hub for the northern end of the Persian Gulf.

A Chinese delegation traveled to the oil-rich Gulf state this week, meeting Kuwaiti officials for “in-depth technical and field discussions” over the construction of the Mubarak Al-Kabeer port and other projects, Kuwait’s state news agency reported.

The resurrection of the project some ten years after building stopped — when it was roughly 50% complete — was sparked in part by neighboring Iraq’s ambitious plan for a USD 17bn road and rail network to boost trade in the region. Turkey, Qatar and the United Arab Emirates are working on that proposal, with Kuwait being sidestepped.

“It has become clear that if Kuwait doesn’t move forward it will be left behind,” said Kristin Smith Diwan, senior resident scholar at the Arab Gulf States Institute in Washington. “That is already happening.”

Kuwait is a key US ally in the Middle East and one of the world’s richest countries thanks to its abundant oil reserves. Yet its development goals have long been blighted by political dysfunction, underscored most recently by the ruling emir suspending parliament.

The revival of the port plan may be a signal that the emir, Sheikh Mishaal Al-Ahmed Al-Sabah, plans to use the suspension to push through projects stalled by disputes between lawmakers and ministers.

On Tuesday, the prime minister said the country is on the verge of a “huge” number of development projects.

There are still plenty of obstacles. The Persian Gulf also has several major ports already, including those in Dubai and Abu Dhabi. And the economies of Syria and Iran — which the port was initially supposed to serve — have been hammered by war and Western sanctions, limiting the benefits of any trade corridor with them.

Mubarak Al-Kabeer also poses direct competition to Iraq’s nearby Faw Port and Baghdad has nullified a maritime agreement that gave Kuwait access through the Khor Abdullah waterway, causing a dispute between the two countries.

“Kuwait is centering its strategic planning on the northern port and city project, which will encourage trade-led development and — it hopes — cement its leadership in the northern Gulf,” Diwan said. “That will be impossible” if the maritime problem with Iraq remains unresolved.

Share article

Sign up for our newsletter

Stay ahead of development by receiving our newsletter on the latest sector knowledge.

Newsletter terms

Front page now

Further reading