Economy
From The Report: Kuwait 2013
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The economic outlook appears broadly positive in the short to medium term, with production of oil, the backbone of the economy, reaching 2.8m bpd in 2012 and continued budget surpluses forecast for 2013/14. Spending linked to the National Development Plan should help to support the expansion of the non-oil sector, particularly via planned investments in infrastructure and industry. This chapter contains interviews with Bader Al Saad, Managing Director, Kuwait Investment Authority; Faisal Al Ayyar, Vice-Chairman, Kuwait Projects Company; and Abdulwahab Al Bader, Director-General, Kuwait Fund for Arab Economic Development.
Articles from this Chapter
Capitalising on gains: Leveraging resources and a strong economy to diversify the market and secure future needs
OBG talks to Bader Al Saad, Managing Director, Kuwait Investment Authority (KIA)OBGplus
Interview:Bader Al Saad How big a role will the KIA play in funding the construction of infrastructure and mega-projects under the National Development Plan (NDP)? BADER AL SAAD: If you look at the bylaws of the development plan, the role of the KIA has been clearly defined. Our job is to assist in the establishment of entities that will implement the strategic plan. Examples include the health sector services company and the logistic cities in the north and west. The KIA is in charge of…
Better policies: Improving incentives and mechanisms to attract more foreign investmentOBGplus
In the decade since the passage of Kuwait’s foreign direct investment (FDI) legislation, the nation has worked to capitalise on the numerous advantages it offers investors from beyond its borders. These include: its location between Iraq and Saudi Arabia; a relatively open economy with a thriving merchant class; one of the most vocal and democratic states in the region; an ambitious development plan with significant budgets for infrastructure projects; a civil-law-based legal system; a robust…
OBG talks to Faisal Al Ayyar, Vice-Chairman, Kuwait Projects Company (KIPCO)OBGplus
Interview:Faisal Al Ayyar What can be done to promote the private sector and restore investor confidence in Kuwait? FAISAL AL AYYAR: The parliament and the government need to actively reach out to the private sector and encourage participation. The private sector currently carries little weight, which is not good for the country’s development. Since the state has a lot of money, there is less of a perceived need for the private sector. If we look back at Kuwait’s history, the previous…
OBG talks to Abdulwahab Al Bader, Director-General, Kuwait Fund for Arab Economic Development (KFAED)OBGplus
Interview:Abdulwahab Al Bader Why was KFAED established, how does it operate and what does it seek to achieve? ABDULWAHAB AL BADER: Since its independence in 1961, the state of Kuwait has been participating in economic development efforts, motivated by its firm belief in the principles of cooperation and humanities. To this end, Kuwait proceeded to establish KFAED, the first institution in the Middle East to take an active role in international developmental efforts. The fund extends loans…
Private gains: Understanding the political landscape for privatisationOBGplus
The potential benefits a privatisation strategy offers to Kuwait are similar to those experienced in other jurisdictions, especially the possibility of increased foreign direct investment (FDI), the potential to reduce public spending and greater tax revenues. Other significant advantages include improved sector efficiency, encouraging Kuwaiti citizens to return from abroad, higher standards driven by more competition, the provision of new job opportunities and availing public assets to more…
Secured for the future: Sovereign funds provide a safeguard and aid diversificationOBGplus
Like many countries fortunate enough to post regular budget surpluses, Kuwait has sought to put its excess liquidity to work in international markets. According to the Sovereign Wealth Fund (SWF) Institute, the Kuwait Investment Authority (KIA) represents the sixth-largest SWF in the world. Furthermore, although it has a broad mandate to invest both at home and abroad, its development reflects the extent of its foreign outlook, given its establishment as the Kuwait Investment Board back in 1953…
Striking a balance: Creating benefits for foreign investors and the local economy alikeOBGplus
set swapping. The NOC offers contractors three main investment options: an NOC pre-approved offset project; a project proposed by the contractor with NOC post-approval; or participation in offset funds developed or approved by the NOC. There is variation in the type of offset projects that the NOC can accept as proposals or propose itself, including joint ventures, greenfield FDI projects, brownfield investments, direct contributions, procurement of national goods and services, the acquisition of…
Open hands: Iraq and Kuwait reach out to forge a new relationshipOBGplus
A landmark flight from Baghdad that touched down in February 2013 at Kuwait International Airport looks set to usher in a new era of stronger economic ties between the two Gulf neighbours. The resumption of direct air travel between Iraq's capital and Kuwait, which is building on a steadily rising flow of traffic between the two countries, is good news for business leaders. The arrival of the Iraqi Airways Airbus 320 in Kuwait on February 27, 2013 signalled the continuation of regular air links…
