Insight Focus
Kuwait and China advance Bubiyan Island port project. Mubarak Al-Kabeer Port will lift capacity beyond 8 million TEUs by 2026, with China Communications Construction Company leading the USD 4.1 billion first phase. Strategically positioned at the northern tip of the Gulf, the project is set to deepen bilateral ties and strengthen Kuwait’s role in regional trade flows.
Kuwait and China have agreed to strengthen their commercial and maritime cooperation through the construction of a new container port on Kuwait’s Bubiyan Island. The project marks a significant step in deepening bilateral economic ties and enhancing the oil-rich country’s strategic position within regional shipping networks.
The Chinese majority state-owned firm China Communications Construction Company will undertake the Engineering, Procurement, and Construction (EPC) works for the project’s first phase.
The development of the new container hub in the north of the country is expected to expand Kuwait’s port capacity and reinforce its role in both regional and global trade flows.
The New Port’s Construction Plan
The construction of Mubarak Al-Kabeer Port has been divided into three phases. In the first phase, plans call for a 1,200-metre-long container terminal with an annual handling capacity of 2.7 million TEUs.
In the second and third phases, 14 additional box berths are scheduled to be built, increasing total handling capacity to over 8 million TEUs. All phases are expected to be completed in 2026.
The project is set to significantly strengthen Kuwait’s trade profile both regionally and globally by increasing port throughput capacity and improving overall logistics efficiency. Ultimately, the initiative will contribute to sustainable, diversified economic growth and position Kuwait as a key logistics and trade hub in the region.
According to the State Audit Bureau of Kuwait, a government oversight body responsible for monitoring public funds, the EPC contract for completing Mubarak Al-Kabeer Port will cost approximately 1.3 billion Kuwaiti dinars, equivalent to more than USD 4.1 billion.
Strategic Positioning and Regional Competition
Located at the northern tip of the Arabian Gulf, Mubarak Al-Kabeer Port is positioned to serve not only Kuwait’s domestic market but also Iraq and potentially parts of Iran, offering access to underserved northern Gulf trade corridors. Its development could allow Kuwait to capture transshipment flows and cargo destined for southern Iraq, while also strengthening its role in regional feeder networks.
However, the port will enter a highly competitive Gulf logistics market. Established regional hubs such as Jebel Ali Port and Hamad Port already operate at significant scale, with advanced automation and strong liner connectivity.
For Mubarak Al-Kabeer Port to compete effectively, operational efficiency and hinterland connectivity will be critical. Its long-term success may depend less on direct competition with these mega-hubs and more on carving out a specialised role within northern Gulf trade flows.
Jebel Ali Port, Dubai
Strong Relations Between the Two Nations
China and Kuwait maintain strong strategic relations focused on sectors such as energy, infrastructure and defence, with China as a top oil importer and investor in Kuwait’s economic transformation projects.
In 2024, the most recent year for which complete data is available, China’s exports to Kuwait exceeded USD 4.8 billion. The bulk of these exports comprised vehicles (excluding railway and tramway rolling stock), machinery, nuclear reactors and boilers, articles of iron or steel, and electrical and electronic equipment, representing the largest share of China’s total exports to Kuwait.
Source: Trading Economics
In the opposite direction, Kuwait’s exports to China reached nearly USD 690 million in 2024, with organic chemicals and plastics accounting for more than 85% of total export value, underscoring the concentration of Kuwait’s export profile in these key product categories.
Source: Trading Economics
Integration into China’s Global Network
The project also aligns with China’s broader ambitions under the Belt and Road Initiative (BRI), a global infrastructure and economic development strategy aiming to engage over 150 countries and international organisations through six overland economic corridors and the 21st Century Maritime Silk Road.
Strengthening port infrastructure in Kuwait enhances China’s logistical footprint along key energy and trade routes, while offering Beijing greater supply chain diversification in a strategically sensitive region. Over time, the development could catalyse adjacent logistics parks, bonded zones and value-added services, reinforcing Kuwait’s aspirations under Kuwait Vision 2035 to transition into a regional commercial hub.
