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The modernisation of the country’s capital markets continued in April 2018 through the promulgation and implementation of Boursa Kuwait’s new rulebook. Its purpose is to clarify the regulatory and organisational framework of Boursa Kuwait and all other aspects of Kuwait’s stock exchange. The new rules provide, among other things, for the segmentation of the market into the premier market, main market and auction market. Each segment has been designed to provide the most suitable disclosure and listing requirements for their members. These reforms also included the recognition and regularisation of specific new transactions, such as short selling, security lending and borrowing. This chapter contains a viewpoint with Ahmed Barakat, Managing Partner, ASAR – Al Ruwayeh & Partners.

After years of abundant public spending, GCC economies experienced a direct hit on their fiscal balances caused by the 2014 fall in oil prices. As such, Kuwait is following the regional trend of pursuing economic and fiscal reform programmes. Multiple government-led initiatives seek to support economic diversification, strengthen the private sector’s contribution to the economy and help keep the deficit under control. In this vein, the last few years have seen the authorities take positive steps towards sustainable development and economic growth by reducing bureaucracy and speeding up administrative processes, amending existing regulations and ratifying a number of new laws. This chapter contains an interview with Alok Chugh, Partner, Government and Public Sector Leader MENA, EY.

Amid concerns over the quality of education and training, and in recognition of the country’s growing youth population, the Kuwaiti government has demonstrated its intention to revitalise the education sector through a series of policy reforms and investments in recent years. Some 37% of the population is under the age of 14, while 35% is between the ages of 15 and 34, making the provision of high-quality education and training facilities an essential part of national strategies for economic development and diversification. Many of the recent reforms were announced as part of the Kuwait National Development Plan, known as New Kuwait 2035, a government strategy that prioritises education as one of its seven policy pillars.

Significant improvements in health outcomes have been achieved in Kuwait over the past 20 years, especially in terms of the extension of life expectancy and the reduction of infant mortality rates. The reform of the Kuwaiti health care sector is central to the Kuwait National Development Plan, which is also known as New Kuwait 2035. With a growing population and an increasing incidence of lifestyle-related diseases, demand for health care is projected to continue to rise over the longer term, in particular for specialist treatments. The state has traditionally played an extensive role in health care provision; however, moving forward, it aims to improve the quality and efficiency of public health services in line with international benchmarks, while also boosting private sector activity.

With a strong fiscal base, a high average per capita income and a robust shopping culture, Kuwait looks set to rebound from a period of stagnant growth caused by declining oil prices. While the local retail sector is small compared to larger GCC markets like the UAE and Saudi Arabia, consumers are quickly catching up with their regional peers in their tastes and demand for international food, brands and shopping experiences. Retail and wholesale trade accounts for a sizeable percentage of Kuwait’s GDP, and there are solid growth forecasts for the coming year. Existing sector players are expecting 2019 to be a year of increased consumer confidence and healthier disposable incomes.

The non-hydrocarbons industrial sector has long played second fiddle to oil and gas in Kuwait. As the economy pivots towards easing its dependence on hydrocarbons, manufacturing is one of the key sectors the government is looking to further develop. Sector stakeholders are welcoming the increased availability of industrial land, as construction continues in the Al Shadadiya Industrial Zone and plans take shape for the ambitious multi-sector Silk City in the country’s north. At the intersection of hydrocarbons and industry, the petrochemicals segment has received considerable attention and investment, while technology manufacturers are winning lucrative contracts to serve the government’s goals of adding greater efficiency to its oil and gas production. This chapter contains an interview with Abdulkarim Taqi, Director-General, Public Authority for Industry.