While small and medium-sized enterprises (SMEs) have historically made a relatively small contribution to Kuwait’s GDP, policymakers are eyeing ways to stimulate their expansion to foster a more dynamic private sector under the Kuwait National Development Plan (KNDP) 2020-25. By doing so, they hope to generate diverse new engines of growth and job creation, and reduce the economic reliance on public…
As part of plans to expand and diversify its global trade partners and fulfil their respective national development strategies, the GCC has launched negotiations with the UK on a free trade agreement (FTA). This partnership is expected to bolster the bloc’s economy, help attract investment and provide greater opportunities for local businesses. On June 22, 2022, the two parties signed a joint statement…
Development aid is a fundamental and long-standing pillar of Kuwait’s foreign policy. Since independence, the combination of the country’s geography, relatively small armed forces and oil wealth have shaped the views of Kuwaiti leadership on the importance of bilateral and multilateral development cooperation as a tool of diplomacy. The country has pioneered regional efforts in the field, establishing…
While many established global stock markets have seen mixed performance in recent years, Kuwait’s have shown positive gains – highlighting the robust nature of its capital markets. With an economy backed by rising oil prices and a solid, well-capitalised financial sector, the country continues to see international investor interest grow. Indeed, its benchmark indices recorded positive performances…
The Kuwaiti insurance sector is undergoing a period of change and growth, as a new regulatory body finds its feet and companies emerge from the Covid-19 pandemic. Stronger oversight and a move towards greater standardisation, coupled with the continuing evolution of digital insurance technology (insurtech), are likely to see that trend continue, with the country’s crowded insurance field likely consolidating…
While it is common knowledge that laws in the Middle East include restrictions on foreign parties doing business that do not apply to citizens, progress has been made in recent years to facilitate foreign investment and participation in businesses in the region. Kuwait was a pioneer in this regard, with the promulgation of the Foreign Direct Investment Law (FDIL) in 2014, which has since been replicated…
With one of the largest relative youth cohorts in the Gulf – the share of the population under 35 stood at 50% as of 2022 – Kuwait has a vested interest in achieving positive learning and health outcomes for nationals and foreign residents alike. As was the case around the world, the Covid-19 pandemic posed specific and immediate challenges for educators and medical workers in the country, which…
Technology development is central to Kuwait’s longterm plans to diversify the economy, with the government attempting to position the country as a regional leader in ICT and financial services. The competition in those spaces across the GCC is fierce, as countries such as the UAE and Saudi Arabia are making concerted investment in ICT infrastructure and financial technology (fintech). The highly…
Kuwait’s economy relies heavily on its hydrocarbons-related industries, and while plans are in place to transition to renewable energies, medium-term development strategies will see oil and gas extraction, processing and capacities ramped up, with the revenue channelled into the government’s industrial diversification drive. Downstream chemicals and petrochemicals production forms the backbone…
Kuwait’s construction and real estate sectors rebounded in the years preceding the Covid-19 pandemic following the 2017 unveiling of New Kuwait 2035, the government’s overarching development blueprint, heralding an extensive infrastructure pipeline. This sparked growth in construction activity, and saw a host of new residential and commercial properties enter the market. In spite of that reinvigoration,…
