Dianne Wilton was dining with friends and a member of the Kuwaiti royal family in a restaurant when a woman attacked her table.
According to witnesses, the suspect had entered the restaurant in Kuwait on Monday looking manic and fled afterwards.
Mrs Wilton - whose husband Christopher is the former British ambassador to Kuwait - was immediately taken to hospital where she underwent treatment, The Times reported.
She was released from hospital last night and will fly back to Britain tomorrow to be with her husband.
Speaking to The Times, Mr Wilton - who served in Kuwait from 2002 to 2005 - said: 'She was extremely shaken up. She is all right but traumatised that this could happen at all.
'The assumption is she (the attacker) singled out a table where Arab men were dining with obviously Western women.'
The attack will come as a massive embarrassment to the rulers of Kuwait - which is a key ally of the west.
It highlights increasing concern in the region about the strength of radical religious groups since the Arab Spring last year.
Mr Wilton ran the British embassy during the invasion of Iraq in 2003. The Gulf state was a key tactical post for coalition forces.
His wife was in the Gulf state to discuss building a new school.
A shocking news for expats like me and thought of sharing with my readers.