Kuwait Signs $4.1 Billion Deal with China for Mubarak Port

Kuwait has signed a $4.1 billion agreement with China to complete the construction of the Mubarak Al-Kabeer Port, marking a major step in the Gulf nation’s efforts to diversify its oil-dependent economy and strengthen its role in global trade and logistics.

Details of the Port Construction Agreement

According to Kuwait’s State Audit Bureau, the engineering, procurement, and construction contract for the Mubarak Al-Kabeer Port will cost 1.28 billion Kuwaiti dinars. The project is located on Boubyan Island and is considered one of Kuwait’s most strategic infrastructure developments. The agreement was formally signed in the presence of Prime Minister Sheikh Ahmad Al-Abdullah Al-Ahmad Al-Sabah.

Strategic Importance of Mubarak Al-Kabeer Port

Speaking at the signing ceremony, the Prime Minister stated that the port would enhance Kuwait’s share in regional and international trade and strengthen its position within the global supply chain. Once completed, the port is expected to serve as a major maritime hub linking the Gulf region with key international trade routes.

China’s Role and Belt and Road Initiative

Chinese acting charge d’affaires Liu Xiang described the agreement as part of China’s Belt and Road Initiative. The initiative, promoted globally by Chinese President Xi Jinping, focuses on large-scale infrastructure development to improve trade connectivity across Asia, Africa, Europe, and the Middle East. China has increasingly prioritised partnerships in the Middle East under this framework.

Imporatnt Facts for Exams

• Mubarak Al-Kabeer Port is located on Boubyan Island in Kuwait.
• The project is part of China’s Belt and Road Initiative.
• The deal is valued at over $4 billion.
• Kuwait aims to diversify its economy beyond oil through trade infrastructure.

Broader Kuwait–China Cooperation

Kuwait and China have expanded cooperation in recent years. In 2023, Kuwait signed seven memoranda of understanding with China covering projects such as the Mubarak Al-Kabeer Port, housing development, water treatment facilities, and renewable energy. The port agreement reflects Kuwait’s broader strategy to position itself as a regional trade gateway while deepening economic ties with China.