Kuwait

Ambitious plans to privatise segments of Kuwait’s health care services are gaining momentum as the government makes a two-fold bid to reduce waiting times at state hospitals and attract new investment for the sector.

Despite new state investments in infrastructure and a steadily rising population, the insurance sector in Kuwait is expected to grow more slowly than elsewhere in the Gulf.

Despite holding substantial oil reserves, Kuwait is stepping up its efforts to develop alternative sources of energy. In mid-June the government announced it was inviting bids for the construction of Shagaya, a renewable energy park, as part of its plan to generate 15% of its electricity through non-oil sources by 2030.

Limited uptake of new technology has had an impact on economic development in Kuwait, according to a recent report.

The Kuwait Stock Exchange (KSE) had a positive start to 2013, with the index steadily moving up to reach multi-year highs in May. While local investors are driving much of the recent activity, foreign capital is increasingly flowing into the Gulf’s third-largest bourse. Plans to privatise the exchange could also boost the KSE’s international profile.

Kuwait has announced it is conducting studies into the viability of extracting shale gas from recently identified reserves, although any commercial operation will likely be many years off.