Economy
From The Report: Kuwait 2014
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Seven decades of expanding oil production have led to Kuwait having one of the world’s highest GDP-per-capita ratios. The generous welfare system guarantees free education, health care and housing to citizens, while subsidised electricity, water and fuel prices are offered to residents. GDP growth reached 4.5% in 2013 and is expected to rise to 5% in 2014, while fiscal reforms will help ensure stability. This chapter contains interviews with Faisal Al Ayyar, Vice-Chairman, Kuwait Projects Company; Meshaal Jaber Al Ahmad Al Sabah, Director-General, Kuwait Direct Investment Promotion Authority; and Abdulwahab Al Bader, Director-General, Kuwait Fund for Arab Economic Development.
Articles from this Chapter
Opportunities are being created by the National Development Plan
Offset programmes to harness foreign expertiseOBGplus
The Kuwaiti government’s increased efforts to bolster foreign direct investment (FDI) could have a significant impact on its offset activities in 2014, as the state’s National Offset Company (NOC) moves to roll out new partnerships between offset obligors and private investors. Although progress has been moderate since the programme’s inception in the 1990s, renewed interest in Kuwait’s hospitality and health sectors has presented opportunities for the government to maximise the potential…
Targeting diversity: OBG talks to Faisal Al Ayyar, Vice-Chairman, Kuwait Projects CompanyOBGplus
Interview:Faisal Al Ayyar To what extent is the economy dependent on the government’s National Development Plan (NDP)? FAISAL AL AYYAR: Oil is still the most important contributor to Kuwait’s economy, and the government depends on it for most of its revenue. With the NDP, there is a great need to focus on the development of people, education and health care. Without these, there can be no real development of the country. While the plan is currently assisting in the development of infrastructure,…
OBG talks to Meshaal Jaber Al Ahmad Al Sabah, Director-General, Kuwait Direct Investment Promotion Authority (KDIPA)OBGplus
Interview:Meshaal Jaber Al Ahmad Al Sabah What impact will the recent legislative changes have on trade and the investment environment? MESHAAL JABER AL AHMAD AL SABAH: Kuwait has witnessed the recent approval of a host of economic laws, namely the Companies Decree Law No. 25/2012 as amended by Law No. 97/2013 and Law No. 116/2013 for the Promotion of Direct Investment in the State of Kuwait, which replaced Law No. 8/2001 and the Kuwait Foreign Investment Bureau with KDIPA. Such advances…
New FDI law passed in December 2013 set to accelerate economic diversificationOBGplus
The government has identified private sector participation as a critical facet of its five-year, $109bn spending plan, reforming its regulatory framework in recent years to enhance the state’s attractiveness to foreign investors. Kuwait has traditionally ranked at the bottom of GCC nations in terms of foreign direct investment (FDI) inflows, and the state has had to work hard to retain valuable investment dollars in the wake of ongoing project delays, prohibitive bureaucracy, and a lack of consistency…
OBG talks to Abdulwahab Al Bader, Director-General, Kuwait Fund for Arab Economic Development (KFAED)OBGplus
Interview:Abdulwahab Al Bader In which sectors is KFAED focusing on increasing investment and interest? In what ways will this benefit the region, given recent events? ABDULWAHAB AL BADER: One of our current priorities is to increase KFAED’s involvement in the social sector, such as health and education. Building the social sectors paves the way for advancements in other developmental areas. For example, in Yemen we are funding and equipping 13 colleges in 12 provinces that specialise in…
OBG talks to Abdulwahab Al Bader, Director-General, Kuwait Fund for Arab Economic Development (KFAED)OBGplus
Interview:Abdulwahab Al Bader In which sectors is KFAED focusing on increasing investment and interest? In what ways will this benefit the region, given recent events? ABDULWAHAB AL BADER: One of our current priorities is to increase KFAED’s involvement in the social sector, such as health and education. Building the social sectors paves the way for advancements in other developmental areas. For example, in Yemen we are funding and equipping 13 colleges in 12 provinces that specialise in…
Reforms to welfare spending and subsidies to prepare public finances for challenges aheadOBGplus
Public spending in Kuwait has come under increased scrutiny in recent years, with a host of domestic and international experts warning that expenditure levels are unsustainable. Kuwait’s welfare system guarantees housing, education, health care and one-off grants to its citizens, as well as cheap power. However, the state is moving forward on a host of expansive mega-projects aimed at increasing oil output and improving water and power supply, meaning that the record budget surpluses of previous…
New measures to stimulate growth of SMEsOBGplus
Small and medium-sized enterprises (SMEs) are set to play an increasingly important role in Kuwait’s economic diversification, following the recent government decision to roll out a multibillion-dollar SME fund aimed at reducing youth unemployment and encouraging entrepreneurship. Although SMEs comprise the majority of registered companies in the state, they attract limited investment, and young entrepreneurs have struggled to access start-up funding for new businesses. As the government moves…
