Cover of The Report: Kuwait 2022

The Report: Kuwait 2022

The economy of Kuwait has long been underpinned by the production and export of crude oil. Although the rise in energy prices in 2021-22 boosted government revenue and macroeconomic stability, the Covid-19 pandemic, which preceded the commodity price boom, underscored the risk of over-reliance on an industry subject to fluctuating global demand. This has created fresh impetus for economic diversification, with robust public finances providing a strong platform to...

Aided by elevated oil revenue and the resumption of economic activity after the Covid-19 pandemic, Kuwait was able to narrow its budget deficit for FY 2021/22 year and record GDP growth in excess of 8% in 2022. With a newly elected Parliament in place and a new Cabinet appointed, there is renewed hope that the country will undertake the reforms needed for long-term economic growth and diversification, supported by large-scale infrastructure projects designed to enhance transport connectivity and support the expansion of high-value industries and exports. Similar to other markets in the region, one of the primary aims of the government is to increase the participation of the private sector in the economy and spur job creation and entrepreneurship, reducing the burden on the public sector wage bill in the process. New opportunities are emerging in the local capital markets, driven by a rise in initial public offerings as high oil prices, reforms enacted by the Capital Markets Authority and Boursa Kuwait, and a generational shift in leadership among the country’s family-owned businesses stimulate appetite for investment-led corporate growth.

OBG & Kuwait

Covid-19 Economic Impact Assessments

Stay updated on how some of the world’s most promising markets are being affected by the Covid-19 pandemic, and what actions governments and private businesses are taking to mitigate challenges and ensure their long-term growth story continues.

Register now and also receive a complimentary 2-month licence to the OBG Research Terminal.

Register Here×

Product successfully added to shopping cart