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With logistics costs among the highest in ASEAN at around 25-30% of GDP, transportation improvements are high on the priority list when it comes to boosting Indonesian growth. Indonesia is investing in plans to boost the road network from 4400 km to 8666 km of roads by 2015. Rail is set for a similar upgrade, with plans that include the Trans-Java high-speed railway. Meanwhile, with 17.6% growth in traffic at Jakarta’s international airport, capacity expansion is highly necessary. The airport opened a third terminal in 2011 and will renovate the existing two, although rumours of a new airport are gaining momentum. Many of these expansion projects will be funded under public-private partnership agreements, which have been the focus of political contention over apparent delays. This chapter includes interviews with Emirsyah Satar, President & CEO, Garuda Indonesia; and Shanti L Poesposoetjipto, Chairman, Samudera Indonesia Group.

Over the past three years Kuwait has promulgated a number of laws concerning public-private partnerships (PPPs), an area which holds great potential in the country. However, since most of the PPP projects initiated by the state are still in their initial phases, it remains to be seen whether there is credence to the proposed Kuwait approach. This chapter looks at the project company structures proposed by the PPP Law and related financing considerations.

This chapter contains details about Kuwait’s tax system, including rules and regulations for foreign investment, procedures for tax filing and appeals, double-tax avoidance treaty agreements and information on trade licences and sponsorship of foreign firms. This chapter also includes an interview with Qais Al Nisf, Managing Partner, BDO.

In the world of retail, Kuwait is a heavy-hitter. This is despite a relatively small population of some 3.5m. Indeed, with the high level of disposable income that Kuwaitis enjoy, retail sales are expected to grow over the coming years by some 42%, from $8.41bn in 2011 to $11.92bn by 2015. This is because mall shopping has become ingrained in local popular culture. Moreover, in recent years a range of new shopping developments have driven up the level of competition. The food and beverage segment continues to be a key component of the retail market, contributing $2.54bn in sales for 2010, accounting for a 33.9% share of the overall sector, despite inflation and the rising cost of food.

Free health care is widely regarded as a civic privilege in Kuwait. However, a growing population means that health care provision is starting to strain state finances. A new scheme is therefore underway to encourage private-sector participation to reduce the burden of state care. The Kuwait Health Assurance Company (KHAC) will be launched by 2015, with a mandate to manage the health care needs of all expatriates living in Kuwait (the number of whom is estimated to rise to 2.23m by 2024). Other new schemes, such as the National Development plan and Mobile Health, aim to expand the health sector and provide improved access to – and provision of – health care. In education, the government plans to upgrade public schools, training institutes and universities, both in terms of facilities and curricula. The Ministry of Education, under the Vision 2030 strategy, also plans to build up to 182 schools. This chapter includes an interview with Dr Kazem Behbehani, Director-General, Dasman Diabetes Institute and former Assistant Director-General, World Health Organisation.

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.