The Kuwait Ministry of Defence has decided to allocate $10bn towards strengthen the country's military capabilities.
The funds will be used to purchase new fighter jets, tanks and air defence systems, enhancing capabilities of the Kuwaiti Armed Forces over the next ten years.
The move is part of the country's larger modernisation project, which aims to replace the legacy military weapons currently in use.
The upgrade programme also seeks to develop effective strategies to combat regional militant groups.
Kuwait Finance Minister Anas al-Saleh was quoted by AFP as saying that the government had previously requested double the amount, but later settled for $10bn under the condition that additional funds be allocated when required.
In November 2015, Kuwait Air Force had requested the US for the sale of sniper advanced targeting pods (ATP) and associated equipment, parts and logistical support.
The country is also in the process of purchasing 28 Eurofighter Typhoon swing-role combat aircraft from Italy.
In July 2015, Rheinmetall was contracted by the Kuwait Army to supply Fuchs / Fox 2 NBC-RS nuclear, bacteriological and chemical (NBC) reconnaissance vehicles for an undisclosed sum.
Media reports had also claimed that Kuwait were contemplating the acquisition of Super Hornet advanced fighter jets from Boeing to replace its fleet of 39 Boeing F/A-18 Hornet jets.