Kuwait-China Port Engagement

This news follows a visit to the Gulf state by a Chinese delegation that has been reported by Kuwait’s state news agency as undertaking “in-depth technical and field discussions” relating to a number of infrastructure projects, which include the construction of the Mubarak Al-Kabeer port.

This project ceased building activity around 10 years ago despite being partially complete. The new process is also timely with Turkey, Qatar and the United Arab Emirates known to be working to support the ambitious plan in Iraq to generate a US$17bn road and rail network – the interesting point there is that Kuwait is not involved with its fellow Gulf state partners (and Turkey).

Kristen Smith Diwan, Senior Resident Scholar, Arab Gulf States Institute in Washington DC points out: “It has become clear that if Kuwait doesn’t move forward it will be left behind. That is already happening.”

There are market and other challenges that need to be overcome before any resumption of construction activity becomes viable. The Arabian Gulf already has several major hub ports, most notably for containers in Abu Dhabi and Jebel Ali. Moreover, Kuwait’s location at the northern end of the Gulf means it represents a significant deviation for shipping lines that is highly unappealing due to time and cost implications.

The project also has a political dimension. Kuwait is a long-standing ally of the US in the Mid East region, but any partnership involving China will likely cause concerns in Washington DC and potentially put pressure on the US relationship.