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Government education spending has grown rapidly in recent years, as the leadership has continued to emphasise the importance of education in creating sustainable employment for Kuwaitis and equipping them with the skills to compete in the global marketplace. Government expenditure on education grew at an average rate of 14.8% in the four years to the 2013/14 fiscal year. Falling oil prices have brought the need for economic diversification back into focus, reinvigorating efforts to develop knowledge-intensive sectors such as high-tech manufacturing and ICT. As such the country’s long-term development plan, Kuwait Vision 2035, places strong emphasis on education as a catalyst to economic diversification, sustainable growth and social progress. Substantial investment from the government is now being coupled with reform tailored to Kuwait’s needs and values. The private sector has a strong presence, educating more than 40% of pupils, and is expanding even more rapidly than the public education system, as demographics and economic growth drive demand.

The health care market in Kuwait is set to receive a fiscal boost over the next five years, as rising public investment and private demand keep growth at double-digit levels. Health care provision and facilities are already expanding at a faster rate than most Gulf countries, reflecting Kuwait’s affluence and the government’s determination to prioritise the sector as part of the Kuwait Development Plan 2015-20. The coming years are likely to see growing opportunities for private and foreign investors as the authorities look to ensure that provision keeps pace with demand. Developing specialist care for chronic conditions, and better preventive care, are priorities, while securing universal coverage for the large expatriate workforce is a long-term goal. This chapter contains an interview with Dr Qais Saleh Al Duwairi, Director-General, Dasman Diabetes Institute (DDI).

The retail sector in Kuwait has achieved rapid growth in recent years, with retailers benefitting from strong economic fundamentals, evolving consumer tastes and a relatively unsaturated market. These factors are set to continue underpinning further growth and diversification over the coming years.The retail market, including wholesale, was worth $5.8bn in 2013, or 3.3% of GDP. While the trend has been a positive one, growth has fluctuated in recent years. In 2009, as the global economic crisis struck, year-on-year market growth fell by 23.4% before surging back by 16.5% in 2010. Declines of 8.7% and 3% followed in 2011 and 2012, respectively, but in 2013 the market recovered again, expanding by 11.9%. The sector’s compound annual growth rate (CAGR) is forecast for 6.7% between 2013 and 2018, with the supermarket and hypermarket segment set for a CAGR of 9.6%.

Economic diversification is at the heart of Kuwait’s long-term development strategy, as is establishing the country as a gateway to the northern Gulf and Middle East. The industrial sector has a central role to play in this, as the state looks to develop export-oriented businesses that can supplement hydrocarbons income and broaden the revenue base. Under the Kuwait Development Plan (KDP) 2015-20, which lays out a strategy for large-scale investments in infrastructure and energy, and includes a strong emphasis on private sector involvement, the government aims to raise the non-oil sector’s contribution to GDP to 64% in 2015-20, up from an average of 45.1% in 2010-13. The chemicals sector is already strong in Kuwait and is expected to raise output strongly in the coming years, leveraging the country’s wealth of resources and spurring a wave of investments. Other industries with potential include construction materials, demand for which is rising as Kuwait ramps up infrastructure projects, and food, where domestic demand and a strategic location are important upsides. This chapter contains an interview with Ghosson Ghassan Al Khaled, COO, ACICO Industries Company

Kuwait’s traditionally telecoms-led ICT sector saw developments in the past year that could encourage continuing expansion in telecoms and spur progress in the industry. While three telecoms operators continue to compete for the country’s high-value consumer market, they have also partnered with global ICT firms to expand their enterprise businesses. The government, for its part, has taken on a larger role in supporting the sector. In 2016 it handed key oversight responsibilities over to a new ICT regulator, the Communications and Information Technology Regulatory Authority. The government has also introduced new foreign direct investment laws and a fund to support small businesses and start-ups, adding important legal and financial incentives to boost ICT business growth. This chapter contains interviews with Salim Al Ozainah, Chairman and CEO, Communication and Information Technology Regulatory Authority (CITRA); and Eaman Al Roudhan, CEO, Zain Kuwait.

Real estate has long been a mainstay of Kuwait’s non-oil economy, while its construction industry is among the strongest in the region and a rising star in the non-oil economy, with its growing population, tightly regulated land market and wealthy populous all combining to fuel demand for new building. In 2014 the two industries together accounted for 10.6% of non-oil GDP. Although a range of factors, including lower oil prices, have affected growth projections across the GCC, Kuwait’s real estate sector is particularly well-poised to face lower prices, with residential the largest segment by both sales and number of transactions, with sales reaching $4.6bn in 2015. This chapter contains interviews with Khaled Al Mashaan, Vice-Chairman and CEO, ALARGAN International Real Estate; Ahmad Kasem, Deputy CEO, United Real Estate Company; and Osama Jawad Bukhamseen, Executive Director, Bukhamseen Holding; and Chairman, Engineering Group.