Economy
From The Report: Kuwait 2019
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Various developments point to healthy economic performance in the near term for Kuwait. Chief among them are the upgrade of the country’s stock exchange, which has been approved for addition to the MSCI Emerging Markets Index; the continuing roll-out of a large infrastructure programme; and the transition into higher value-added downstream production within the country’s leading hydrocarbons industry. Meanwhile, prudent macroeconomic policies – including building one of the world’s largest sovereign wealth funds – have helped Kuwait weather the recent protracted downturn in oil and gas prices. Foreign investment has been welcomed as Kuwait capitalises on its strong regional and international connections to mobilise global interest.

This chapter contains an interview with Khaled Mahdi, Secretary-General, Supreme Council for Planning and Development.

Articles from this Chapter

Overview

A rally year: Plans to move to a private sector-led, knowledge-based economy and careful spending should act to buffer against fiscal challenges
OBG
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Various developments point to healthy economic performance in the near term for Kuwait. Chief among them are the upgrade of the country’s stock exchange, which has been approved for addition to the MSCI Emerging Markets Index; the continuing rollout of a large infrastructure programme; and the transition into higher value-added downstream production within the country’s leading hydrocarbons industry. Meanwhile, prudent macroeconomic policies – including building one of the world’s…

Interview

Capitalising on potential: Khaled Mahdi, Secretary-General, Supreme Council for Planning and Development, on competitiveness, partnerships and the importance of female empowerment
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Interview:Khaled Mahdi In what specific areas is the Kuwait National Development Plan (KNDP) 2020-25 aiming to enhance the country’s global competitiveness? KHALED MAHDI: Our largest sector in Kuwait – besides the oil industry – is the public sector, and we are working to restructure the government to improve its effectiveness, its operations and its delivery, thus changing its role from an operator to a regulator. As part of these efforts, we have set up the Kuwait Public Policy Centre…

Analysis

Strategic sales: Privatisation is part of a national plan to create a new economic model with reduced reliance on oil and gas revenue
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February 2019 saw the government complete its selloff of a 44% stake in Boursa Kuwait, the country’s stock exchange, which is due to be followed by an initial public offering of a further 50% in late 2019. The sale followed a year of promising performance for the exchange, in addition to the June 2018 announcement that the bourse will soon be included in the main emerging markets index of global financial information provider MSCI – a move that is expected to bring approximately $2.8bn…

Overview

Shifting trade winds: Regional integration among emerging economies and a raft of new multilateral agreements bolster international trade
OBG
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Global trade faces protectionist headwinds that are dampening the outlook for growth in the coming years. According to the World Trade Organisation (WTO), trade volumes grew by 3% in 2018 and are expected to decline slightly to 2.6% in 2019 before climbing to 3% in 2020. This may be the first time since the 2007-08 global financial crisis that growth will fall below a 3% average, as significant uncertainty driven by an escalating US-China tariff war, acrimonious Brexit negotiations, and wariness surrounding US involvement in several multilateral trade agreements affect business confidence and investment decisions. Nevertheless, although…

Overview

Shifting trade winds: Regional integration among emerging economies and a raft of new multilateral agreements bolster international trade
OBG
plus

Global trade faces protectionist headwinds that are dampening the outlook for growth in the coming years. According to the World Trade Organisation (WTO), trade volumes grew by 3% in 2018 and are expected to decline slightly to 2.6% in 2019 before climbing to 3% in 2020. This may be the first time since the 2007-08 global financial crisis that growth will fall below a 3% average, as significant uncertainty driven by an escalating US-China tariff war, acrimonious Brexit negotiations, and wariness surrounding US involvement in several multilateral trade agreements affect business confidence and investment decisions. Nevertheless, although…