The economic outlook appears broadly positive in the short to medium term, with production of oil, the backbone of the economy, reaching 2.8m bpd in 2012 and continued budget surpluses forecast for 2013/14. Spending linked to the National Development Plan should help to support the expansion of the non-oil sector, particularly via planned investments in infrastructure and industry. This chapter...
Kuwait
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Chapter | Country Profile from The Report: Kuwait 2013
Estimated to possess some 6% of the world’s proven oil reserves, Kuwait’s oil and gas industry promises to play a critical role in the economy for years to come. The nation is not however resting on this alone, and it is now pursuing a programme of economic diversification that is set to re-energise the private sector. The Kuwait Development Plan is a $107bn, 20-year programme aimed at achieving...
Oil production retains its key role in the economy, however plans are under way to encourage diversification away from hydrocarbons towards an economy that is more knowledge based. The political climate has been characterised of late by a number of disputes, often resulting in either the resignation of the government or the dissolution of parliament, which has contributed to the slow progress of some projects.
With rising demand for residential units starting to match interest in commercial space,
Kuwait’s real estate sector appears set to see greater activity in the second half of the year. However, high prices and a shortage of supply in some segments may put a dampener on sales growth.
Government investments in the transport sector are set to expand capacity at Kuwait’s ports over the next several years. Progress is being made on the new Mubarak Al Kabeer (MAK) port, while other infrastructure projects – including a 36-km causeway that will link Shuwaikh Port with Boubyan Island – are moving ahead.
While Kuwait’s FDI figures were up in 2012, far more capital still leaves the country each year than enters it. However, the government is working to reverse this, in part by improving the legal framework for foreign investment.