Kuwait

The decision to temporarily halt and revise the Kuwait Offset Programme (KOP), before reintroducing it next year, is widely seen as a sign of the government’s commitment to enhancing the business climate amidst fierce regional competition and following regulatory reforms.

A growing population and crowded public school system have led Kuwait to move forward on a host of investments in education. The government recently launched tenders for a series of primary and secondary school construction projects while private sector contractors are poised to benefit as a university city is built.

Kuwait is seeing significant activity in its construction sector this year, with contracts worth $17.5bn already signed or on offer. There are also a number of large-scale projects already underway and at the stage of moving from the drawing-board to the development stage, adding further momentum. However, raw material supplies, including cement, are in short supply and could cause delays and cost increases.

An increasing number of Kuwaiti lenders are moving away from traditional banking in a bid to tap into a booming market for Sharia-compliant financial products in the region - a move that could soon see Islamic financing overtake conventional banking in the Gulf state.

Kuwait is to broaden its energy production, launching the first step in an extensive renewable energy programme intended to ease reliance on hydrocarbons while at the same time building awareness of the commercial and investment opportunities offered by solar energy.

Kuwait is becoming increasingly concerned over the threat posed by cyber attacks against its strategic oil and gas industry, along with other sectors of the economy, with greater training of staff and improved technology seen as vital front-line defences to ensure cyber security.