Industry

While the contribution of oil to the economy has fallen in recent years, due in part to the global downturn, hydrocarbons still make up nearly half of Kuwait’s GDP and provide the government with around 95% of its annual revenue. Indeed, under the New Development Plan, launched in 2010, oil production is set to rise. However, like all Gulf economies, Kuwait has adopted a long-term strategy of economic diversification to reduce its dependence on hydrocarbons. As part of its Vision 2035 goals, Kuwait seeks to transform itself into a regional and financial centre. Under this scheme, both upstream and downstream segments are undergoing a process of expansion guided by a national five-year plan that also calls for investment in the nascent non-oil industrial sector. Small and medium-sized enterprises (SMEs) are seen as key drivers of this future growth, with 84% of firms in the non-oil sector being SMEs. Manufacturing is also being expanded to reduce reliance on the oil sector, with a wide range of large projects and infrastructural upgrades in the pipeline.