The financial authorities in Kuwait said that they are considering offering international bonds in the financial markets to finance the budget deficit of three billion Kuwaiti dinars, or ten billion dollars.
And this oil-rich Gulf country faces a deficit in the public budget for the first time in 16 years.
Anas Al-Saleh, the Kuwaiti Minister of Finance, said in a speech to the National Assembly that the state plans to issue Islamic and regular Sukuk for offering in the financial markets.
Under this plan, Kuwait borrows two billion Kuwaiti dinars, equivalent to $ 6.6 billion, in the form of traditional and Islamic bonds offered on the local market, according to Al-Saleh.
It is the first time that Kuwait has offered foreign bonds in 20 years.
The Kuwaiti Ministry of Finance is slated to launch these bonds over the 17/17/2016 fiscal year that starts April 1 and ends March 31, according to the finance minister, who has not given a specific date for the offering.
Saleh, who is in charge of the oil portfolio in the Kuwaiti Ministry of Acting, added that the Finance Ministry has already borrowed 2.5 billion dollars from the local market, stressing that the budget deficit amounted to 5.5 billion Kuwaiti dinars, or 18.3 billion dollars, in the 2015/16 fiscal year.
The UAE expects a budget deficit of up to $ 28 billion in the current fiscal year.
Kuwait enjoyed good financial conditions for 16 consecutive years until the collapse of world oil prices two years ago, to experience a huge budget deficit after it was achieving an annual fiscal surplus.
Oil contributes to about 95 percent of government revenue in Kuwait.
In years, Kuwait achieved a financial surplus estimated at about 600 billion dollars, managed by the Kuwait Investment Authority in the form of property, mostly in the United States, Europe, and Asia.