The state-owned oil industry is by far the largest sector in Kuwait’s economy, representing more than half of GDP, 95% of exports and roughly four-fifths of state revenues. As oil and its byproducts are used to make more than 300,000 products globally, the country’s petroleum-based industries and petrochemicals hold significant growth potential. By comparison, non-petroleum industrial manufacturing is limited, as Kuwait lacks many of the natural resources necessary to establish alternative major industries. Relative security, political stability, economic performance, infrastructure projects and proximity to labour markets in Asia are all positive factors supporting the growth of Kuwait’s industry, but challenges include its domestic market size, limited supply of industrial land, production costs and considerable licensing and permitting issues. However recently announced government plans to boost Kuwait’s industrial output by 25% in the next few years bodes well for sector growth.
This chapter contains an interview with Faisal Awwad Al Khaldi, Deputy CEO, Kuwait Steel.