KUWAIT

Deep recession ahead

B1

LOW RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

Swipe to view more

GDP USD142bn (World ranking 57, World Bank 2018) 
Population 4.14mn (World ranking 128, World Bank 2018)
Form of state Constitutional Emirate 
Head of state Emir SABAH Al-Ahmad Al-Jaber Al-Sabah
Next elections 2020, legislative 
  • World’s seventh largest proven oil reserves.
  • Strategic importance in troubled region and major non-NATO ally of the US.
  • Sound Financial sector
  • High income economy and net creditor status
  • Strong oil and gas revenues generate large fiscal and current account surpluses during times of high oil prices and “excess” earnings are invested in foreign assets and/or used to supplement an oil account that is for the use of future generations.
  • Low external obligations.
  • Generally supportive business environment.
  • Combative political system that can slow reforms and policy implementation.
  • Exposure to oil price and output cycles contributes to growth volatility.
  • Industry is capital intensive and job creation is weak for a growing population, with social repercussions as the unemployed seek alternative means to vent their frustrations.
  • High degree of public ownership and control of oil and gas sectors results in a generally weak private sector.
  • Vulnerability of oil installations and foreign personnel to attacks by extremists and terrorists.
  • Regional volatility and uncertainty.

Trade structure by destination/origin

(% of total)

Exports Rank Imports
Russia 46%
1
60% Russia
Ukraine 13%
2
6% Germany
Latvia 8%
3
5% China
Lithuania 3%
4
5% Ukraine
Poland 2%
5
4% Poland

Trade structure by product

(% of total)

Exports Rank Imports
Petroleum and products thereof 76%
1
15% Road vehicles
Organic chemicals 6%
2
6% Other industrial machinery & parts
Gas, natural ans manufactured 4%
3
6% Telecomm & recording apparatus
Plastics in primary forms 3%
4
5% Electrical machinery, appliances,...
Road vehicles 2%
5
4% Iron and steel

Contact

Contact Euler Hermes

Economic Research Team

research@eulerhermes.com

Country Risk Analyst:

Manfred Stamer

         manfred.stamer@eulerhermes.com      

VIEW OUR SOLUTION