Economy
From The Report: Kuwait 2022
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Kuwait’s economy has long been underpinned by the production and export of crude oil. Although the rise in oil prices in 2021-22 boosted government revenue and macroeconomic stability, the Covid-19 pandemic – which preceded the commodity price boom – also underscored the risks of overreliance on an industry subject to fluctuating global demand. This has created fresh impetus for economic diversification, with the government hoping that robust public finances, as well as a new Cabinet and elected legislature, will drive policy changes and infrastructure projects, in turn unlocking investment and private sector growth. Although many of the projects and objectives of the Kuwait National Development Plan 2015-20, which focused on infrastructure, have yet to be fulfilled, significant investment and ongoing efforts to meet these goals highlight progress.

Articles from this Chapter

Overview

On the up: Rising oil revenue and new policy developments look likely to unlock investment and drive private sector growth
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Kuwait’s economy has long been underpinned by the production and export of crude oil. Although the rise in oil prices in 2021-22 boosted government revenue and macroeconomic stability, the Covid-19 pandemic – which preceded the commodity price boom – also underscored the risks of overreliance on an industry subject to fluctuating global demand. This has created a fresh impetus for economic diversification, with the government hoping that robust public finances – and a new Cabinet and elected…

Analysis

Taking the lead: Creating an ecosystem to support the growth of small businesses
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While small and medium-sized enterprises (SMEs) have historically made a relatively small contribution to Kuwait’s GDP, policymakers are eyeing ways to stimulate their expansion to foster a more dynamic private sector under the Kuwait National Development Plan (KNDP) 2020-25. By doing so, they hope to generate diverse new engines of growth and job creation, and reduce the economic reliance on public sector entities. Addressing Imbalances In contrast with other emerging and developed economies,…

Analysis

Positive outlook: Surpluses from oil revenue are enhancing regional integration and economic diversification among GCC countries
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In a year of global economic uncertainty fuelled by inflation, geopolitical crises and supply chain insecurity, the Middle East witnesseda second consecutive year of economic growth, with countries in the region investing in new technologies and projects that could herald greater integration in the years ahead. Whereas in October 2022 the World Economic Outlook by the IMF projected that global GDP expansion would slow from 6% in 2021 to 3.2% in 2022, sustained high oil prices were set to push…