Economy
From The Report: Kuwait 2017
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With billions of dinars worth of short-term spending plans and a new vision for economic transformation over the next two decades, Kuwait offers opportunities for investment across a range of sectors. While the country adopted a save and prosper approach during the oil boom years of 2010-14, the prolonged reduction in oil prices experienced since then has coincided with a renewed appetite for investment and reform that bodes well for private sector players. Funding mechanisms such as public-private partnership agreements, as well as capital projects funded by state-owned enterprises, are set to provide opportunities for international firms with the government actively seeking to attract foreign direct investment and highlighting the ICT, renewable energy and finance as sectors it would like to see developed by using international expertise over the following two decades.

This chapter contains interviews with Khaled Mahdi, Secretary-General, Supreme Council for Planning and Development and Sheikh Meshaal Jaber Al Ahmad Al Sabah, Director General, Kuwait Direct Investment Promotion Authority.

Articles from this Chapter

Overview

Seeking investment: Decades of fiscal discipline and wise planning are now beginning to bear fruit
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With billions of dinars worth of short-term spending plans and a new vision for economic transformation over the next two decades, Kuwait offers opportunities for investment across a range of sectors. While the country adopted a save and prosper approach during the oil boom years of 2010-14, the prolonged reduction in oil prices experienced since then has coincided with a renewed appetite for investment and reform that bodes well for private sector players. “While government revenues in…

Analysis

A new day: The most recent ambitious economic strategy aims to deliver on past promises and new goals
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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, launched the plan, which includes 164 development programmes, five themes, and seven pillars for investment…

Interview

Changing course: Khaled Mahdi, Secretary-General, Supreme Council for Planning and Development, on structural reforms
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Interview:Khaled Mahdi How is the council enhancing integration between the public and private sectors in the Kuwait Development Plan 2015-20? KHALED MAHDI: The government stated very clearly its intentions to transition its role in the economy from an operator to regulator, from wealth distribution to wealth creation, and to entrust the economy to the private sector. The important question is how to achieve this change in strategic governance? We have identified what we call four private…

Interview

Looking abroad: Sheikh Meshaal Jaber Al Ahmad Al Sabah, Director-General, Kuwait Direct Investment Promotion Authority (KDIPA), on encouraging foreign investment
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Interview: Sheikh Meshaal Jaber Al Ahmad Al Sabah What role can foreign companies play in helping Kuwait shift to a more diversified economy? SHEIKH MESHAAL JABER AL AHMAD AL SABAH: Foreign companies established in Kuwait are positively contributing to job creation and training opportunities for Kuwaiti nationals. In 2016 foreign companies in Kuwait created more than 1000 jobs for Kuwaiti nationals. In addition, renowned global companies are establishing long-term ties in Kuwait by opening training…

Analysis

Mind the gap: Despite deficits in recent years, the government has maintained fiscal discipline
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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” credit rating from Fitch Standard & Poor’s thanks to a track record of saving during the oil…

Analysis

Branching out: Non-oil sectors see a flurry of new activity
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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, driven by strong investment. The IMF bases its calculations on the calendar year, rather than the fiscal…

Analysis

All together: Public-private partnerships help to realise several key projects
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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 with a health insurance company, but also with the successful construction on budget and on time…