Kuwait

The sector is entering a period of transition following its recovery from the global economic downturn. Although penetration rates are low, rapid population growth, rising per capita income levels and regulatory developments like the 2010 privatisation law are driving up demand for insurance products in Kuwait. A number of takaful (sharia-compliant) insurers are successfully emerging, tapping...

Sharia-compliant banking represents a large and vibrant market segment in Kuwait, as Islamic banks exhibit a similar profitability trend to their conventional counterparts. Within Kuwait, Islamic banks hold 35% of total banking assets, and it has been estimated that they are growing at a rate of 20% per annum. On the other hand, the 2008 financial crisis brought the sharia-compliant segment slow...

The Kuwait Stock Exchange (KSE) is one of the oldest in the region and traditionally has been a regional leader in sovereign bond issuance. Following the economic downturn that started in 2008, the KSE has sought to restore confidence and offer a route to renewed growth via a comprehensive package of reforms. The Capital Markets Law, passed in 2010, aims to boost transparency and enhance investor...

Kuwait’s economy is famously based on its natural resources, including 8.2% of the world’s oil reserves and around 1% of global gas reserves. The economy is therefore inextricably linked to the price of oil and will remain so for the medium term at least. However, in recent times oil revenues have surged, and together with strong public finances and a young and growing population, the country’s...

The banking sector continues to follow conservative lending policies as it returns to pre-downturn strength. Thanks to the adroit response of both the government and the central bank, however, the sector is emerging from a challenging period, ready to grow with the wider economy once again. Indeed, limited competition from foreign banks has helped establish Kuwait’s domestic banking system as one...

Kuwait is widely regarded as a leader of Arab democracy within the Gulf region and a forerunner of political reform in a conservative neighbourhood. Recent years have seen a great deal of progress: in 2005 a law was passed giving women the right to vote and run in elections for the national assembly. Political participation is high, with the 2009 elections seeing a voter turnout of around 60%....