Economy
From The Report: Kuwait 2015
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Although the recent dip in oil prices is undoubtedly a concern for Kuwait’s economy should prices remain depressed, the successive budget surpluses of recent years and the country’s low breakeven price on oil production mean the country is strongly placed to cope with lower prices without increasing production. Meanwhile, the government remains committed to maintaining capital expenditures and delivering the project pipeline outlined under the National Development Plan 2015-20, and foreign direct investment continues to grow as the government works to encourage foreign involvement in the local economy in a bid to diversify sources of investment. A number of positive policy reforms aimed at diversifying industry and strengthening private sector participation are likely to continue to support steady growth going forward.

This chapter contains interviews with Tariq Abdulsalam, CEO – Investments, Kuwait Projects Company; and Chairman, United Real Estate; Meshaal Jaber Al Ahmad Al Sabah, Director-General, Kuwait Direct Investment Promotion Authority; and Abdulwahab Al Bader, Director-General, Kuwait Fund for Arab Economic Development.

Articles from this Chapter

Overview

Strong foundations: Prudent fiscal management has helped the country to expand its investment horizons
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As one of the world’s largest oil producers, Kuwait’s energy sector has supported a rapid pace of economic growth since the discovery of oil in the country in the early 1930s. Revenues from these resources have helped Kuwait to become one of the wealthiest countries in the world in terms of GDP per capita. Despite a significant increase in government spending, high oil prices until 2014 and a steady level of production have enabled the country to generate significant budget surpluses over the…

Interview

Steady wins the race: OBG talks to Tariq Abdulsalam, CEO – Investments, Kuwait Projects Company; and Chairman, United Real Estate Company
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What reform is needed to more effectively implement the National Development Plan (NDP)? ABDULSALAM: There are many areas that need improvement, including encouraging new businesses and a more secure economic environment. The government has been very aggressive in implementing its economic plan, beginning with infrastructure and energy. Despite the sudden drop in oil prices, it plans to move forward, as it knows these are investments in the future. However, the plan needs careful study and…

Interview

Overcoming obstacles: OBG talks to Meshaal Jaber Al Ahmad Al Sabah, Director-General, Kuwait Direct Investment Promotion Authority (KDIPA)
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Interview:Meshaal Jaber Al Ahmad Al Sabah How are higher minimum capital requirements and fees on commercial permits affecting the sector? MESHAAL JABER AL AHMAD AL SABAH: The changes that have resulted from these new laws were the result of an extensive study that took into account prevalent practices in other GCC countries and best practices elsewhere, and they have improved the establishment of new forms of business entities and introduced more transparent procedures. Criticism has tended…

Analysis

Setting the wheel in motion: New development plan lays out an ambitious project agenda
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After setting out a broad outline of the country’s second five-year development plan in August 2014, the government approved the KD34.15bn ($117.65bn) strategy in February 2015. The announcement builds on a successful year of project implementation in 2014 and emphasises a commitment from the authorities to maintain capital investment, despite the plunge in oil prices. Moreover, it provides a welcome boost for the country’s growing private sector. SPECIFICS: The Kuwait Development Plan…

Analysis

A healthier business climate: Government reforms seek to attract new investment through public-private partnerships
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The Kuwait Development Plan 2015-20 looks to address a range of challenges and hurdles that have hindered the country’s economic development strategy over the last five years. While 2014 proved to be a stellar year in terms of projects awarded and implemented, the government has recognised that reforms are required in order to maximise the country’s development potential. The government has indicated that the country needs to reform two key areas in order to maintain steady growth in its…

Interview

Creating opportunities: OBG talks to Abdulwahab Al Bader, Director-General, Kuwait Fund for Arab Economic Development (Kuwait Fund)
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Interview:Abdulwahab Al Bader What is the process through which loans are distributed both sectorally and geographically? AL BADER: Kuwait Fund extends loans on concessionary terms to finance development projects in developing countries. We also provide technical assistance to finance the cost of feasibility studies for projects and for training of nationals of the recipient countries. In addition, the fund contributes to the resources of regional and international development institutions. Over…