The Report: Kuwait 2018

With 6% of the world’s proven oil reserves and 1% of its natural gas, hydrocarbons continue to form the backbone of Kuwait’s economy. Given that the energy sector accounts for 90% of exports and government revenues, state coffers have been under strain as a result of the 2014 fall in oil prices. However, the resurgence in global commodity markets bodes well for the future and has led to a to a renewed sense of optimism for investors as the government forges ahead with diversification efforts under the auspices of the Kuwait National Development Plan, or New Kuwait. Unveiled in January 2017, the plan sets out long-term development priorities that are being pursued through 164 strategic programmes organised into five themes and seven pillars. These include positioning Kuwait as a global hub for the petrochemical industry and tripling foreign direct investment. Meanwhile, work continues on upgrades to the country’s infrastructure, with the expansion of Kuwait’s international airport well under way and a high-speed international railway set to connect the country to Iraq and eventually link up with the proposed GCC rail network.