Laos is forging closer ties with the United Arab Emirates (UAE) and Kuwait, as Prime Minister Sonexay Siphandone used the 2025 World Governments Summit in Dubai to push for deeper economic cooperation and investment. Held from 11 to 13 February, the summit provided a platform for the Lao leader to engage with high-level counterparts, including the UAE’s Vice President, Prime Minister, and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, and Kuwait’s Prime Minister, His Highness Sheikh Ahmed Abdullah Al-Ahmad Al-Sabah. Alongside these discussions, talks with Vietnam’s Deputy Prime Minister and Foreign Minister Bui Thanh Son underscored Laos’ commitment to strengthening regional partnerships.
The meetings come at a pivotal time for Laos, a landlocked nation in South East Asia seeking to diversify its economy amid regional competition and global economic uncertainties. With a focus on agriculture, hydropower, tourism, and mining, the Lao government is keen to attract foreign investment to bolster infrastructure and industrial growth. The engagements in Dubai signal a strategic pivot towards Gulf countries, whose capital and expertise could play a transformative role in Laos’ development ambitions.
Building Bridges with the UAE
During bilateral talks on 12 February, Prime Minister Sonexay and Sheikh Mohammed explored avenues to enhance cooperation between their nations. A key outcome was an agreement to encourage UAE investors to explore opportunities in Laos, particularly in agriculture, industry, tourism, hydropower, and mining. The Lao Ministry of Foreign Affairs highlighted the potential for building on existing UAE business ventures, such as dry port services in a special economic zone in Savannakhet, a central province that serves as a logistics hub. 
The UAE’s involvement in Savannakhet offers a glimpse of what future partnerships could achieve. Dry ports—facilities that handle cargo away from coastal areas—have become critical to Laos’ aspirations as a transit hub connecting Thailand, Vietnam, and China. UAE expertise in logistics and infrastructure could further elevate these zones, potentially transforming Laos into a linchpin of regional trade. However, while the prospects are promising, challenges such as regulatory hurdles and the need for skilled labour in Laos may temper the pace of investment. If addressed, such collaborations could yield significant economic dividends for both nations.
To mark the 30th anniversary of diplomatic relations between Laos and the UAE in 2026, Prime Minister Sonexay extended an invitation to Sheikh Mohammed to visit Laos. This gesture underscores Vientiane’s intent to deepen ties beyond economic interests, fostering cultural and political exchanges. The Lao leader also expressed gratitude for the invitation to the summit and the warm hospitality extended to his delegation, a nod to the personal diplomacy that often underpins such high-level engagements.
Deepening Ties with Kuwait
On 11 February, Prime Minister Sonexay met with Kuwait’s Prime Minister Sheikh Ahmed Abdullah Al-Ahmad Al-Sabah, with both leaders reaffirming the value of their bilateral relationship, established in 2008. Similar to discussions with the UAE, the Lao premier encouraged Kuwaiti investors to explore opportunities in clean energy, industry, agriculture, services, and tourism. These sectors align closely with Laos’ national development goals, which prioritise sustainable growth and economic diversification.
Kuwait’s history of assistance to Laos, particularly in agriculture and energy, provided a foundation for the talks. Prime Minister Sonexay expressed heartfelt thanks for this support, highlighting its role in addressing rural poverty and energy access—persistent challenges for a country where over 60% of the population lives in rural areas. An official visit to Laos by Sheikh Ahmed Abdullah, extended as an invitation during the meeting, could further cement these ties, potentially unlocking new avenues for aid and investment.
While Kuwait’s engagement with Laos remains less extensive than that of regional giants like China or Vietnam, its focus on energy and agriculture complements Vientiane’s priorities. If Kuwaiti investment in clean energy materialises, it could help Laos reduce its reliance on hydropower, which, while abundant, poses environmental and social risks due to dam construction along the Mekong River. Such a shift, if confirmed through future agreements, may offer a more balanced approach to energy development, though no specific commitments were announced at the summit.
Reinforcing Solidarity with Vietnam
Beyond Gulf partnerships, Prime Minister Sonexay’s meeting with Vietnam’s Deputy Prime Minister and Foreign Minister Bui Thanh Son reaffirmed the deep-rooted ties between the two neighbours. Described as embodying “great friendly relations, special solidarity, and comprehensive cooperation,” the relationship between Laos and Vietnam is underpinned by shared history, political alignment, and economic interdependence.
The leaders agreed to push relevant ministries and agencies to implement existing cooperation agreements, with a particular focus on economic affairs. This commitment reflects the intertwined economies of the two nations, with Vietnam serving as a key trading partner and gateway to maritime access for landlocked Laos. Through Bui Thanh Son, Prime Minister Sonexay conveyed warm greetings to Vietnam’s leadership and people, a gesture that reinforces the personal and political bonds between the two countries.
The Laos-Vietnam relationship stands as a cornerstone of Vientiane’s foreign policy, often prioritised over newer partnerships like those with Gulf states. Vietnam’s role in Laos’ infrastructure development, including road and rail links, has been instrumental in connecting remote regions to regional markets. However, economic dependence on Vietnam also raises questions about Laos’ ability to balance its regional alliances with emerging global partnerships, such as those discussed in Dubai. While no new initiatives were announced, the reaffirmation of existing agreements suggests continuity in this critical relationship.
Strategic Implications for Laos
Prime Minister Sonexay’s engagements at the World Governments Summit highlight Laos’ evolving foreign policy, which seeks to diversify partnerships while maintaining strong regional ties. The focus on Gulf countries like the UAE and Kuwait represents a calculated effort to attract investment in sectors vital to Laos’ growth. Agriculture and hydropower, for instance, are not only economic mainstays but also areas where foreign expertise could address longstanding challenges, such as low productivity and environmental concerns.
Tourism, another priority sector, offers immense potential for Laos, with its rich cultural heritage and natural landscapes drawing increasing numbers of international visitors. UAE and Kuwaiti investment in hospitality and infrastructure could elevate Laos’ profile as a destination, though cultural sensitivities and the need for sustainable development must be carefully managed. If successful, such partnerships could position Laos as a niche tourism hub in South East Asia, distinct from more commercialised destinations like Thailand or Vietnam.
Mining and industry, meanwhile, present both opportunities and risks. While rich in resources like copper, gold, and bauxite, Laos has faced criticism for lax environmental regulations and the displacement of local communities due to mining projects. Gulf investment, if accompanied by stringent oversight, may help modernise these sectors, though no evidence confirms specific commitments at this stage. Analysts suggest that Laos must prioritise transparency and community engagement to avoid repeating past mistakes, a concern that looms over any new economic agreements.
The World Governments Summit also served as a platform for Laos to showcase its ambitions on the global stage. Hosted by Dubai, a city synonymous with innovation and economic diversification, the event offered Prime Minister Sonexay a chance to align Laos with forward-thinking governance models. Whether this translates into tangible outcomes remains to be seen, but the discussions mark a step towards integrating Laos into broader international networks.
Challenges and Opportunities Ahead
Despite the optimism surrounding these engagements, Laos faces significant hurdles in translating diplomatic overtures into economic gains. Infrastructure deficits, bureaucratic inefficiencies, and a limited skilled workforce remain barriers to foreign investment. While Gulf countries bring capital and expertise, their unfamiliarity with Laos’ unique socio-political context could complicate partnerships. If unaddressed, these challenges may limit the impact of the agreements discussed in Dubai.
Moreover, Laos must navigate its geopolitical position carefully. Sandwiched between economic giants like China, Thailand, and Vietnam, the country often struggles to assert its autonomy in foreign relations. The push for Gulf partnerships, while a diversification strategy, must be balanced against existing commitments to regional allies. Over-reliance on any single partner, whether regional or international, risks undermining Laos’ strategic flexibility.
On the flip side, the engagements in Dubai underscore Laos’ growing confidence in seeking global partnerships. The invitation to Gulf leaders to visit Vientiane signals an intent to host high-level exchanges on its own terms, a departure from its historically inward-looking stance. If these visits materialise, they could elevate Laos’ diplomatic profile, drawing further attention to its investment potential.
Prime Minister Sonexay Siphandone’s participation in the 2025 World Governments Summit has positioned Laos as an emerging player in international diplomacy, with a clear focus on economic collaboration with the UAE and Kuwait. By inviting Gulf leaders to visit and encouraging investment in key sectors, Laos is laying the groundwork for partnerships that could reshape its economic landscape. At the same time, reaffirming ties with Vietnam ensures continuity in its regional strategy, balancing new ambitions with established alliances.
While challenges such as infrastructure gaps and geopolitical constraints persist, the discussions in Dubai offer a glimpse of Laos’ potential to carve out a more prominent role on the global stage. If these diplomatic efforts translate into concrete investments and sustainable development, they could mark a turning point for a nation often overshadowed by its larger neighbours. For now, the outcomes remain speculative, with no confirmed agreements to report, but the intent and direction are clear: Laos is open for business, and the Gulf may hold the key to its next chapter.
