In its Kuwait 2035 strategy, Kuwait declared its vision to transition into a knowledge-based economy (KBE). The core of this vision involves diversifying the country’s resources to avoid relying solely on oil as its main natural resource. The proposed diversification of resources requires significant reform within KBE’s four main pillars, which include effective investment in education, constructing a robust and innovative capability, modernising the information technology infrastructure, and having an economic environment that is conducive to maximum development. However, while Kuwait is increasingly investing in information and communication technology infrastructure and a welcoming economic environment, progress in education and innovation continues to lag. This research adopts a qualitative approach aiming to address the increased demand for academically based explorations of Kuwait’s attempts to adopt a KBE. Focusing on the education pillar, the study presents a framework for the development of a higher education system able to support the diversification process. In particular, this research seeks to inform policy debates by proposing actionable policies targeting education; thus, it defines concrete steps to strengthen the KBE in Kuwait.