The Report: Kuwait 2022

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.