Industry
From The Report: Kuwait 2017
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The state-owned oil industry is by far the largest sector in Kuwait’s economy, representing more than half of GDP, 95% of exports and roughly four-fifths of state revenues. As oil and its byproducts are used to make more than 300,000 products globally, the country’s petroleum-based industries and petrochemicals hold significant growth potential. By comparison, non-petroleum industrial manufacturing is limited, as Kuwait lacks many of the natural resources necessary to establish alternative major industries. Relative security, political stability, economic performance, infrastructure projects and proximity to labour markets in Asia are all positive factors supporting the growth of Kuwait’s industry, but challenges include its domestic market size, limited supply of industrial land, production costs and considerable licensing and permitting issues. However recently announced government plans to boost Kuwait’s industrial output by 25% in the next few years bodes well for sector growth.

This chapter contains an interview with Faisal Awwad Al Khaldi, Deputy CEO, Kuwait Steel.

Articles from this Chapter

Overview

A national powerhouse: State support drives sector expansion through incentives and industrial zones
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The state-owned oil industry is by far the largest sector in Kuwait’s economy, representing more than half of GDP, 95% of exports and roughly four-fifths of state revenues. As oil and its byproducts are used to make more than 300,000 products globally, the country’s petroleum-based industries and petrochemicals hold significant growth potential. By comparison, non-petroleum industrial manufacturing is limited, as Kuwait lacks many of the natural resources necessary to establish alternative…

Interview

Stepping up to the plate: Faisal Awwad Al Khaldi, Deputy CEO, Kuwait Steel, on industry and manufacturing driving economic diversification
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Interview: Faisal Awwad Al Khaldi How can private sector industrial and manufacturing companies help diversify Kuwait’s economy? FAISAL AWWAD AL KHALDI: The economy in Kuwait has been heavily reliant on oil revenues and thus impacted by the sharp downturn in oil prices. Kuwait plans to diversify government revenues based on strong growth in non-oil sectors, while encouraging the private sector to play a greater part in the economy. Private participation in government infrastructure projects is…

Analysis

Feedstock value: Petrochemicals segment broadens its product base in response to low oil prices
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In September 2016 Mohammad Al Ajmi, director-general of the Public Authority for Industry, announced plans to boost Kuwait’s industrial output by 25% in the coming years. Although the state controls nearly 101bn barrels of proven crude deposits, the drop in oil prices has compelled the government to push ahead with a host of economic reforms aimed at diversifying the economy through industrial expansion. The success or failure of this expansion and the expected double-digit growth in industrial…