When I wrote three months ago about why the economic changes afoot in the Gulf region have taken on a whole new urgency in “The challenge of change: And why it matters this time”, my analysis was very much framed against a background of anything but business as usual. I remain firmly of the opinion that the major economic restructuring that is needed in the GCC is far more likely…
The past decade has seen substantial changes in the global economy and geopolitics, with the rise of China and Russia’s re-emergence on the global stage being two particularly important trends. These developments are creating new opportunities for GCC member states as they look to diversify their economies and trade, seek investment opportunities in emerging markets, and forge partnerships…
The past decade has seen substantial changes in the global economy and geopolitics, with the rise of China and Russia’s re-emergence on the global stage being two particularly important trends. These developments are creating new opportunities for GCC member states as they look to diversify their economies and trade, seek investment opportunities in emerging markets, and forge partnerships…
With plans to invest KD34bn ($112.4bn) in strategic projects by 2019, Kuwait wants to raise a third of that capital from the private sector. One of the key vehicles geared up for delivering that aim is the public-private partnership (PPP) model, a relatively new concept in the country, but one that has been growing in popularity across the GCC for decades. Proof of concept has been established…
A far-reaching vision for New Kuwait 2035 was unveiled in 2017, the aim of which is to develop the country into a cultural centre, a financial hub, a world-leading manufacturer of petrochemicals, a focal point for foreign investment, and a place for knowledge transfer in renewable energy and IT by 2035. Sheikh Mohammad Abdullah Al Mubarak Al Sabah, the minister of state for Cabinet Affairs,…
Although Kuwait’s economy is dominated by hydrocarbons, it is non-oil activity, alongside the rebound in crude prices experienced since January 2016, that is driving growth forecasts. National Bank of Kuwait estimated overall real GDP growth of 3.6% in 2016, and forecast growth of 1.7% in 2017 and 2.7% in 2018, while in the non-oil sector it anticipated growth of 3.5-4% in 2017 and 2018,…
When Kuwait raised $8bn in its first international bond sale in March 2017, Deputy Prime Minister Sheikh Jaber Al Mubarak Al Hamad Al Sabah said the country intended to be a prudent borrower, and it can afford to be. Kuwait’s economy may be dominated by oil, but it can tolerate a lower fiscal break-even price for the commodity than any of its Gulf neighbours. The country enjoys an “AA”…
Banking sector liquidity has not been a concern in the GCC for nearly 10 years, but the rapid decline of crude oil prices that began in the summer of 2014 has made the issue a regional challenge once again. The central role played by oil and gas in GCC economies means that large movements in spot prices and energy futures have the potential to significantly influence the liquidity position…
In 2016 Boursa Kuwait, the new operator of the Kuwait Stock Exchange (KSE), set about implementing its long list of regulatory improvements that will align the country’s stock market with the most advanced in the region. This process is continuing in 2017, with every month seeing announcements regarding new products and services aimed at improving the regulatory framework, boosting liquidity…
In late 2016 the Central Bank of Kuwait (CBK) made a significant change to the Islamic financial services (IFS) sector. Like most regulators in the region, the CBK has traditionally taken a universal stance on its conventional and sharia-compliant financial institutions, regulating both segments simultaneously and only making exceptions where required by the provisions of sharia. Until now,…
