Kuwait’s economy relies heavily on hydrocarbons-related industries, and while plans are in place to transition to more renewable sources, 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 is largely reliant on oil for exports, government revenue and GDP contribution. The country is therefore particularly sensitive to fluctuating global hydrocarbons prices and the long-term financial risks associated with the global shift towards lower-carbon sources of energy. Transitioning towards a more diversified and sustainable energy mix is an ongoing challenge for the country, as for much…
Aided by elevated oil revenue and the resumption of economic activity after the Covid-19 pandemic, Kuwait was able to narrow its budget deficit for FY 2021/22 year and record GDP growth in excess of 8% in 2022. With a newly elected Parliament in place and a new Cabinet appointed, there is renewed hope that the country will undertake the reforms needed for long-term economic growth and diversificat
The non-hydrocarbons industrial sector has long played a secondary role to oil and gas in Kuwait. As the country pivots towards easing the dependence of its economy on hydrocarbons, manufacturing is one of the sectors the government is looking to further develop, with the Public Authority of Industry (PAI) taking the lead. Sector stakeholders are welcoming the increased availability of industrial…
Small and medium-sized enterprises (SMEs) are the engines of global economic growth and employment, accounting for an average of 33% of GDP and 45% of the workforce in high-income countries, and over 60% of GDP and 70% of employment in developing economies. In the case of the latter, the rise in the number of SMEs has been crucial to economic diversification and resilience, particularly in…
Interview:Abdulkarim Taqi In what ways can the PAI collaborate with the private sector to develop Kuwait’s industrial parks? ABDULKARIM TAQI: Supporting infrastructure for industrial parks is key to enabling a sustainable business environment. This includes building logistics capabilities, utilities, seaports, labour housing, free trade zones, schools and entertainment facilities. The PAI…
The non-hydrocarbons industrial sector has long played second fiddle to oil and gas in Kuwait. As the economy pivots towards easing its dependence on hydrocarbons, manufacturing is one of the key sectors the government is looking to further develop. Sector stakeholders are welcoming the increased availability of industrial land, as construction continues in the Al Shadadiya Industrial Zone and plans…
The New Kuwait 2035 vision aims to deploy the nation’s oil wealth to diversify the economy. The private sector is vital to this, with partnerships and privatisation, improvements to the business environment, and efforts to attract foreign direct investment (FDI) and harness knowledge from abroad all being key moves. Kuwait seeks to attract $200bn in FDI during 2020-35 to become a global centre f
As Kuwait tries to curb its dependency on hydrocarbons, which accounted for over 90% of state revenues in 2017, other industries are coming into focus. Excluding refined petroleum products and nuclear fuel, manufacturing industries’ contribution to GDP rose by 6.2% in 2017 to KD1.7bn ($5.6bn), according to the central bank. This figure has grown steadily from KD1.6bn ($5.3bn) in 2016, KD1.5bn…
Interview:Faisal Awwad Al Khaldi What opportunities exist for the private sector to invest in value-added activities in downstream that enhance steel’s contribution to the economy? FAISAL AWWAD AL KHALDI: In downstream production, there are many potential investment opportunities in both long and flat-finished products. Flat products such as steel sheets, plates and strips are used in several…