The fiscal policies of the state are the macroeconomic instruments. In order to protect against fluctuations in oil prices, estimated oil prices are kept low when budget accounts are made. The decline in global oil prices in 2015-2016 has affected Kuwait’s economy in the negative direction. The first budget deficit of the last 15 years has been given that year. This has led to a decline in the growth of public spending.
With the Action Plan “Kuwait 2035 vision”, Kuwait has set out to reduce dependence on oil and increase employment. With this project, they aim to increase their role in the region and make the country a financial and commercial center. In this way, it is aimed to increase the interest of investors and the private sector.
Kuwait describes 5-year plans for the direction of the economy. Within the framework of the most recently announced plan covering the period 2015 / 2020, it is aimed to realize projects worth $115 billion. The establishment of the railway system, Metro construction and various oil projects and the new oil refinery project are the main ones of these projects. In addition, the share of private sector in the economy is increased and employment is also planned to be increased. The implementation of the fixed USD in $ was terminated in 2007. However, the Kuwait dollar remains stable against the USD.
The Kuwait economy Parallels the fluctuations in oil prices. The decline in oil revenues and political crises led to a limitation of public spending. However, in Kuwait, which has a strong economy, it is estimated that the country’s economy will not be affected by the drop-in oil prices that will be seen in the coming years.
With the exception of foreign real persons and trading companies having legal personality established in foreign countries according to the laws of these countries, no one can acquire real estates and limited real rights on real estates in Turkey. Most foreign investments in the country are in the oil sector.
The fact that the country has a weighted economy in the oil sector only causes it to import all food and consumer goods.
Since 2018, the growth of the economy is targeted by increases in various construction and infrastructure sectors.
Kuwait aims to contribute to the economy by investing in non-oil sectors. If you want to improve your business by investing in the country, we are ready to offer you PreaGlobal consulting services. We are ready to share our knowledge with you as we have mastered all laws and economic opportunities in the country. We will provide all kinds of support for your company and we will be with you with all consultancy services with our expert staff in the process of establishment of your company.
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