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,…
A common theme throughout the GCC’s insurance markets is the gradual shift towards compulsory private health care. The issue has been on the agenda of regulators for years, and the sustained period of low oil prices which began in late 2014 has strengthened the desire of governments to shift some of the burden of health care provision to the private sector. By the close of 2016 these efforts…
Kuwait is investing in a significant pipeline of major infrastructure projects and transportation programmes connected to the Kuwait Development Plan 2015-20. The country’s most recent 2016-17 spending plan earmarks roughly $15.6bn for infrastructure projects across the housing, transport, electricity, ports, aviation, telecommunications and renewable energy sectors. The government will…
The first green shoots of renewable energy have begun to appear in Kuwait as new solar projects come on-stream and recognise the potential to cut costs, reduce emissions and divert fuel to export markets rather than domestic consumption. In November 2016 the emir of Kuwait, Sheikh Sabah Al Ahmad Al Jaber Al Sabah, demonstrated the country’s commitment to international efforts to reduce global…
