Despite global economic volatility, Kuwait recorded its first budget surplus for nine years in the 2022-23 financial year, buoyed by elevated oil prices, which helped it to achieve an 8.9% GDP growth rate in 2022. 

 

While GDP growth slipped to -0.6% in 2023 amid moderating oil prices and global inflation challenges, Kuwait's long-term economic stability has been bolstered by diversification initiatives outlined in the New Kuwait 2035 vision, said Oxford Business Group (OBG) in its The Report: Kuwait 2024, highlighting the Gulf country’s strides towards economic diversification and the push for private sector growth.

 

High-value investments in infrastructure and efforts to accelerate private sector development further reinforce this stability.

 

Knowledge-based industries

Key insights from the report highlight Kuwait's shift towards knowledge-based industries and efforts to foster a robust SME ecosystem in line with strategic vision outlined in the New Kuwait 2035 initiative. 

 

Additionally, the report emphasises opportunities for profitability and further asset expansion in the banking sector. Regulatory developments, such as new insurance legislation, are explored, along with efforts to diversify the domestic energy mix, optimise remaining hydrocarbon resources in a sustainable manner, and enhance health care services through a public-private partnership model. Together, these insights offer valuable guidance for investors navigating Kuwait's evolving economic landscape.

 

The Report: Kuwait 2024 contains a viewpoint by Emir Sheikh Mishal Al Ahmad Al Jaber Al Sabah, together with a detailed sector-by-sector guide for investors. 

 

It also features interviews with a broad range of high-profile personalities, including: Sheikh Meshaal Jaber Al Sabah, Director-General, Kuwait Direct Investment Promotion Authority; Basel Al Haroon, Governor, Central Bank of Kuwait; Isam Al Sager, CEO, National Bank of Kuwait; Mohammad Saud Al Osaimi, CEO, Boursa Kuwait; and Ahmed Jaber Al Eidan, CEO, Kuwait Oil Company.

 

Resilience and strategic vision

Jana Treeck, OBG’s Managing Director for the Middle East, said that the insights provided in The Report: Kuwait 2024 underscore Kuwait's resilience and strategic vision amid evolving global economic dynamics.

 

“As Kuwait charts its course towards economic diversification and the expansion of the private sector under new leadership, The Report: Kuwait 2024 emerges as a valuable asset for investors, policymakers and analysts navigating the intricacies of the Kuwaiti market,” Treeck added.

 

OBG’s Editor-in-Chief, Oliver Cornock, highlighted the potential for further economic diversification and private sector growth in the country. 

 

Budget surplus

"Kuwait's economic resilience is apparent amid global economic fluctuations. Despite navigating challenges such as moderating oil prices and global inflation, Kuwait recorded its first budget surplus in almost a decade in 2022-23 and policymakers appear keen to address structural challenges. Through strategic investments in infrastructure and a dedicated focus on accelerating private sector development, Kuwait is paving the way for sustained growth and prosperity," he noted.

 

The Report: Kuwait 2024 is produced in partnership with KDIPA, Boursa Kuwait and ASAR - Al Ruwayeh & Partners, offering comprehensive insights into Kuwait's economic landscape. 

 

The publication represents the culmination of an extensive six-month research endeavour led by OBG’s field analysts. The publication assesses trends and developments across the economy, including those in macroeconomics, infrastructure, banking and others.--TradeArabia News Service