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The UAE and Kuwait continue to strengthen their economic and commercial relations through sustained bilateral trade growth, with non-oil trade reaching 50 billion dirhams in 2024, reflecting a 9% increase compared to 45.7 billion dirhams in 2023. This UAE-Kuwait economic partnership demonstrates the strategic depth of cooperation between the two Gulf nations, according to official data from the UAE Ministry of Economy and Tourism.
During the first nine months of 2025, bilateral trade volumes climbed to 38.8 billion dirhams, marking a 7.6% growth rate. The first half of 2025 alone witnessed 27.1 billion dirhams in non-oil foreign trade between the countries, representing a 15% year-on-year increase. These figures underscore the expanding commercial ties that date back to before the UAE’s formation.
Historical Roots of UAE-Kuwait Trade Relations
Economic relations between the Emirates and Kuwait have deep historical foundations, predating the establishment of the UAE federation. Early Kuwaiti merchants settled in Dubai, particularly in the Murshid Souq area, where they contributed to timber trade, real estate, and entertainment sectors. Notably, Kuwaiti merchant Murshid Al-Osaimi opened Dubai’s first known cinema, “Al-Watan Cinema,” during the 1940s and 1950s.
This historical cooperation has evolved into a comprehensive partnership built on mutual trust and shared vision for economic integration. The relationship supports sustainable economic development and enhances Gulf Cooperation Council unity, benefiting both nations and their peoples.
Kuwait’s Position as Key Trading Partner
Kuwait ranks as the 14th largest global trading partner for the UAE in 2024 and fourth among Arab nations. Meanwhile, the UAE serves as Kuwait’s second-largest trading partner worldwide and first among Arab and Gulf states. The Emirates captures approximately 20% of Kuwait’s non-oil exports, according to official statistics.
Additionally, trade between the two countries represented nearly two-thirds of Kuwait’s total trade with GCC countries during 2024. The UAE holds the top position globally in receiving Kuwait’s non-oil exports, accounting for more than 15.7% of Kuwait’s total non-oil export volume. In imports, the Emirates ranked second globally for Kuwait in 2023.
Investment and Business Activity
The UAE ranks third globally among countries investing in Kuwait, contributing over 6% of Kuwait’s total inbound foreign direct investment stock. Conversely, Kuwait holds the ninth position globally for countries investing in the Emirates, representing 3% of the UAE’s inbound foreign direct investment and ranking second among Arab investors.
The UAE hosts more than 1,700 Kuwaiti trademarks, 13 registered commercial agencies, and 15 Kuwaiti companies, according to Ministry of Economy and Tourism data. Key Kuwaiti investment sectors in the Emirates include financial services and insurance, manufacturing, real estate, information and communications, wholesale and retail trade, mining, construction, hospitality, transportation, and professional services.
Fourteen-Year Trade Growth Trajectory
Non-oil trade volume between the countries has increased fivefold since 2010, when bilateral commerce totaled 7.4 billion dirhams. The trade relationship experienced significant jumps, reaching 19.4 billion dirhams in 2011 and climbing steadily through subsequent years. By 2018, trade had surged to 39.3 billion dirhams, eventually reaching the current 50 billion dirham milestone in 2024.
The cumulative non-oil trade volume between the UAE and Kuwait from 2010 through the end of 2024 reached approximately 459 billion dirhams. This sustained growth reflects the strengthening business confidence and capital flows between both nations’ commercial communities.
Tourism and Connectivity Enhancement
The countries maintain strong tourism ties, with 164 weekly flights connecting the UAE and Kuwait, facilitating travel and business movement. Kuwaiti tourists staying in UAE hotels reached more than 381,000 in 2023, compared to 250,000 in 2022. Meanwhile, Emirati tourists visiting Kuwait numbered 42,236 during the January-September 2024 period.
Official forecasts indicate that 2026 will witness additional growth in export volumes and bilateral trade, reflecting the strength of economic relations. However, authorities have not specified exact projections or announced new agreements expected to be finalized in the coming months.
