Kuwait

Plans for a major new refinery and record exports to Asia have led to heady estimates of Kuwait’s oil revenues for 2012 and the sector is looking to innovative techniques to extract huge reserves of heavy oil.

Plans are moving ahead for Kuwait’s country-wide metro system, which is hoped to address the growing issue of congestion and create a better environment for growth in commercial, business, industrial and residential markets.

The outlook for Kuwait’s banking system over the next 12-18 months remains stable, according to a recent report by Moody’s Investors Services. Asset quality has improved markedly since the days of the global financial crisis, and lenders are well capitalised. However, the country’s lenders face other challenges, most notably a sluggish economy that has left demand for loans – particularly on the corporate side – limited.

An ambitious infrastructure investment programme to be spread over the next two years is the latest stage of Kuwait’s long-term development plan.

Momentum generated by a strong recovery in Kuwait’s real estate sector in early 2012 is expected to continue throughout the year. In February 2012, the National Bank of Kuwait revealed that real estate sales in January totalled KD318.1m ($1.14bn), a 64% year-on-year (y-o-y) increase, which represents the third-best level on record.

Thanks to growing global demand for plastics in 2011, Kuwait’s petrochemicals companies reported improved financial results last year. Moreover, the sector looks set to expand, with the government investing in new facilities and taking steps to ensure that the industry has a sufficient supply of natural gas.