Kuwait renews push for Northern Economic Zone
Kuwait renews push for Northern Economic Zone
Prime Minister meets officials, experts to discuss private sector participation, zone's legal foundation
KUWAIT: In a renewed drive to advance one of Kuwait's most ambitious development projects, His Highness Sheikh Ahmad Al-Abdullah Al-Ahmad Al-Sabah, Prime Minister of Kuwait, chaired a strategic meeting at Bayan Palace focused on the Northern Economic Zone— of which Silk City is a prominent part. The meeting brought together senior officials and experts from the Northern Economic Zone project team to review initial features of the zone's strategic plan. Discussions emphasized enhancing private sector participation through a flexible legislative framework and competitive incentive structures targeting industrial, commercial, and tourism sectors. The legal foundation for establishing the zone was also addressed, with officials stressing the need to preserve full Kuwaiti sovereignty while creating an investor-friendly environment.
Reviving Silk City
Silk City, or Madinat Al-Hareer, has been decades in the making. Originally proposed in the 1980s as a residential project in Subiya, the initiative evolved into a sweeping urban and economic development plan that includes Subiya, Boubyan Island, and nearby northern areas—covering over 250 square kilometers. Though envisioned as a hub for trade, innovation, and regional connectivity, the project has faced repeated delays due to geopolitical instability and shifting political priorities.
Chinese involvement
A key driver in the latest iteration of the Silk City project is Kuwait's growing partnership with China, particularly under the framework of China's Belt and Road Initiative (BRI). As early as 2018, high-level Kuwaiti delegations—including representatives from the Silk City Development Authority—visited Beijing and met with China's National Development and Reform Commission (NDRC), the China Development Bank, and top Chinese construction and tech firms such as Huawei, Alibaba, CGGC, and CCCC.
These meetings led to several Memoranda of Understanding (MoUs) around infrastructure investment, e-commerce, and digital development, positioning Silk City as a potential cornerstone of China's regional logistics and digital trade ambitions. The project's inclusion in Kuwait Vision 2035—a national strategy to diversify the economy beyond oil—further deepened its alignment with China's strategic interests in the Gulf. However, the road has not been smooth. Political opposition within Kuwait and debates over the role of foreign stakeholders as opposed to Kuwait's private sector have contributed to delays. The project has largely been on hold since 2019.
A turning point
Despite these challenges, the government appears determined to move the project forward. The first phase of Silk City, listed on the New Kuwait 2035 website, includes the activation of the China-Kuwait agreement on master planning and the development of special legislation for a competitive economic zone governed by independent institutions. Officials at Tuesday's meeting, including Abdulaziz Dakhil Al-Dakhil, Head of the Prime Minister's Diwan, and Housing and Municipal Affairs Minister Abdulatif Hamed Al-Mashary, reaffirmed Kuwait's commitment to transforming the northern region into a hub for trade, innovation, and international investment. — Agencies
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