Featured by OBG
Kuwait is advancing a broad reform agenda under the New Kuwait 2035 development plan, aiming to strengthen economic resilience and diversify beyond hydrocarbons. Recent governance and fiscal reforms, including the passage of a new public debt law, are expected to expand financing options and support capital market development. At the same time, investment in infrastructure, logistics, digital technology and industry is creating new opportunities for private sector participation. While the energy sector continues to anchor the economy, expanding activity in finance, ICT and trade is helping to broaden growth drivers. Parallel investment in education, health care and cultural infrastructure is also strengthening human capital and quality of life, positioning Kuwait for more diversified and sustainable long-term growth.
The economic downturn resulting from lower global commodity prices and the completion of the PNG LNG project means the future of Papua New Guinea must be navigated with care. The country possesses plentiful natural resources, which, given effective management, could provide new revenue to spur diversification, as well as sustainable and equitable growth in all provinces.
Abu Dhabi is home to the world’s sixth-largest proven oil reserves and is working to achieve self-sufficiency in natural gas. It has been successfully pursuing diversification, particularly in terms of manufacturing, banking and ICT. While the global Covid-19 pandemic and decline in international oil prices poses challenges for the emirate, the fundamentals underpinning its economy remain strong.
Indonesia is the world’s 16th-largest economy and presents an enticing opportunity for investors, with ongoing reform efforts and attractive demographics. Meanwhile, a booming start-up ecosystem signals the country’s rising consumer power and regional influence. While headwinds are expected to follow Covid-19, Indonesia’s strong foundations will help maintain momentum in the medium to long term.
Cote d'Ivoire is an economic powerhouse in West Africa, posting average growth of 8% between 2011 and 2018. However, the rate of GDP growth in real terms fell to 6.7% in 2019 and is expected to contract to 2.7% in 2020 due to the Covid-19 pandemic and subsequent widespread shutdowns. Looking to the future, the IMF expects growth to rebound to 8.7% in 2021, highlighting the country’s economic resilience.
Saudi Arabia’s decision to weaken the link between hydrocarbons and economic growth, and pursue a policy of diversification has seen projects across a range of sectors come to fruition in the last several years. While at present the twin crises presented by the Covid-19 pandemic and the unprecedented plunge in oil prices are causing significant short-term uncertainty, the reforms that have been put in place in recent years should stand the Kingdom in good stead over the longer term.
