The Cabinet of Kuwait, chaired by His Highness the Prime Minister Sheikh Ahmad Al-Abdullah Al-Ahmad Al-Sabah, approved on Tuesday a draft decree-law to restructure Kuwait Airways Corporation into a fully state-owned shareholding company. Deputy Prime Minister and Minister of State for Cabinet Affairs Shareeda Al-Maousherji reported that the draft decree has been forwarded to His Highness the Amir Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah for final endorsement.
In addition to this corporate reform, the Cabinet addressed several key domestic and regional issues during the session. A report presented by Minister of Finance Dr. Yaqoub Al-Refai highlighted Kuwait’s sovereign credit rating for the first half of 2026, confirming the country’s strong investment-grade status. Ratings agencies Standard & Poor’s and Fitch affirmed Kuwait’s AA- rating while Moody’s maintained its A1 rating, all with stable outlooks. The report attributed this stability to ongoing structural reforms, including the recent Law No. 60 of 2025 on financing and liquidity, which has enhanced government financial flexibility and expanded public debt instruments.
On foreign affairs, the Cabinet reviewed the outcomes of recent high-level talks between His Highness the Amir and UAE President Sheikh Mohammed bin Zayed Al Nahyan during the latter’s state visit to Kuwait. The meeting also noted the Amiri order declaring a four-day official mourning period following the death of the former Father Amir of Qatar, Sheikh Hamad bin Khalifa Al-Thani, with national flags lowered to half-mast in respect.
Security concerns were a prominent focus, with the Cabinet strongly condemning what it described as hostile aggression by Iran and affiliated militias in Iraq targeting Kuwaiti border posts and an offshore drilling platform operated by the Kuwait Oil Company. These attacks reportedly resulted in casualties and material damage. The Cabinet characterized these actions as violations of Kuwait’s sovereignty and a breach of United Nations Security Council Resolution 2817 (2026). Kuwait reaffirmed its right under international law to take all necessary measures to protect its borders and safeguard its citizens and residents. There was also a denunciation of repeated attacks against the Kuwaiti Consulate General in Basra, with calls for the Iraqi government to uphold its obligations under the 1963 Vienna Convention on Consular Relations and to hold the perpetrators accountable.
Minister of Defense Sheikh Abdullah Ali Abdullah Al-Salem Al-Sabah briefed the Cabinet on the readiness of the Kuwait Armed Forces, affirming their full preparedness to respond to any threats to national sovereignty or territorial integrity. The Cabinet further expressed solidarity with regional partners in condemning recent attacks against Saudi Arabia, the United Arab Emirates, Bahrain, Oman, Qatar, and Jordan. It warned that missile strikes on Saudi territory and hostile actions against Saudi and Emirati vessels in the Strait of Hormuz pose a significant risk to regional stability, global energy supplies, and freedom of navigation.
Domestically, the Cabinet approved several Green Urban Development Initiatives proposed by public oil companies, private sector bodies, and civil society organizations. The government commended Ahmadi Governor Sheikh Humoud Jaber Al-Ahmad Al-Sabah and the relevant committees for their efforts in promoting nationwide greening and beautification projects. The meeting ended with further review and approval of ministerial committee reports, while several pending matters were referred to specialized committees for additional examination and recommendations.