Economy
From The Report: Kuwait 2024
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Kuwait’s GDP has undergone significant expansion in recent years, with the spike in global oil prices enabling the country to maintain a trade surplus amid domestic political changes, international geopolitical tensions and economic uncertainties. Guided by medium- and long-term development plans, the country is in the process of diversifying its economy as it shifts its focus from resource-based to knowledge-based industries. Increased privatisation is central to that drive, with government entities dominating economic activities and high public expenditure historically returning budget deficits. The development of the ecosystem for small and medium-sized enterprises is intended to provide a stable foundation from which a more versatile business community can grow.

Articles from this Chapter

Overview

Rooted transformation: Positive economic indices and a privatisation drive are supporting ambitious economic diversification plans
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Kuwait’s GDP has undergone significant expansion in recent years, with the spike in global oil prices enabling the country to maintain a trade surplus amid domestic political changes, international geopolitical tensions and economic uncertainties. Major ongoing infrastructure developments in the country’s oil sector are set to boost capacity and output and further drive receipts derived from the country’s number one export. Guided by medium- and long-term development plans, Kuwait is in the…

Analysis

Actualising progress: A positive financial outlook and potential reforms aim to boost economic resilience amid global economic headwinds
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Kuwait entered 2024 in a generally robust economic position thanks to improved fiscal and external balances. Following a formal change in executive leadership in late 2023, policymakers have the opportunity to build on recent gains to foster long-term, sustainable growth – provided they can navigate the prevailing challenges in the domestic and global markets. National & Global Context Kuwait’s economic recovery from the Covid-19 pandemic has been aided by high oil prices, with inflation…

Analysis

Even approach: Gulf countries are following fiscally stringent economic strategies
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As oil prices moderate from recent highs, countries in the Middle East are following divergent fiscal paths in their efforts to generate sustainable growth. For FY 2023/24 Kuwait anticipates revenue of KD19.5bn ($63.4bn), primarily driven by oil. During the same period the government’s planned expenditure of KD26.3bn ($85.6bn) allocates 80% to salaries and subsidies, 9% to capital expenditure and 11% to other expenses, resulting in a fiscal deficit of KD6.8bn ($22.1bn). This contrasts with the…