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Global Trade Volume of Turkey

Kuwait, an oil-based economy, accounts for about 50% of GDP in oil and oil-based sectors. A large part of the manufacturing industry is also made up of oil-based industries. The share of oil revenues in total public revenues is 90.2%. In addition, PraeGlobal has a very effective place in Kuwait.

The rise in global oil prices has positively affected Kuwait, which is a large part of its economy, and many projects have been implemented. With the provision of liquid, the country has entered a period of restructuring. In this way, employment has reached the highest figures in the last 10 years and consequently, consumption expenditures have increased. The private sector benefited from the increase in consumption expenditures and the increase in public procurement and tenders.

The country’s management applies some subsidies to basic input prices of products such as water, electricity, cement, Iron-Steel, meat, bread, flour, fuel. As a result, selling these products at low prices, providing domestic telephone calls for free, increased budget costs and led to unnecessary consumption and waste of resources in consumption of these products.

Kuwait Economic Data

Datas 2013 2014 2015 2016 2017
Population (million) 3.9 4.0 4.2 4.3 4.4
Per capita GDP (USD) 44488 40248 27014 25859 27260
GDP (USD bn) 173 163 115 111 120
Economic growth  (GDP, annual change as %) 1.2 0.5 0.6 3.5 -2,9
Consumption (Annual change %) 5.6 2.6 1.5 4.8
Investment (Annual change %) 8.9 4.5 15.5 2.0
Jobless rate 2.6 2.9 2.2 2.1 2.1
Financial Balance (% of GDP) 22.2 19.9 -10,9
Infllation rate (CPI, Annual change %) 2.7 2.9 3.3 3.2 1.5
Policy interest rate (%) 2.00 2.00 2.25 2.50 2.75
Exchange rate (USD etc.) 0.28 0.29 0.30 0.31 0.30
Exchange rate (US dollar, aop) 0.28 0.28 0.30 0.30 0.30
Currency account (% of GDP) 40,3 33.8 3.5 -4,5 6.3
Currency account balance (USD bn) 69.8 55.0 4.0 -5.0 7.6
Trade balance (billion $) 89.6 78,3 27,8 20.1 23.5
Export (billion $) 115 106 54.2 46,6 55.0
Import (billion $) 25.4 27.3 26.4 26.4 31.5
Export (Annual change %) -3,8 -8.2 -48,7 -14,1 18.2
Import (Annual change %) 4.9 7.2 -3.1 0.1 19.2
International reserves (USD) 29.5 32,2 28.4 31.1 33.7
External loan (% of GDP) 11.4 14.7 32,6 37.2

Trade Qualities

  1. Agriculture and Stock Raising

    Because of its climate and geographical characteristics, Kuwait does not have sufficient resources in agriculture and stock raising. For this reason, Kuwait is dependent on exports of food. A limited number of sheep, camels and goats are breeding in the country. The Government provides subsidies for fishing, agriculture and livestock with incentive policies.

  2. Industry

    Production of chemicals, plastics, textiles, agriculture, metal products and various construction materials constitutes production areas other than petroleum and petrochemical production. One of the most important sectors is desalination facilities. Freshwater is obtained from sea water in these facilities. There are 5 facilities throughout the country. The total capacity of these facilities is 1,19 million cubic meters. A large portion of the cost of production is subsidized by the government.

  3. Mining

    Kuwait has a significant amount of free gas reserves. Natural gas production is expected to represent one-quarter of the current oil revenues. Despite the newly discovered gas reserves, gas purchases from neighboring countries are continuing for increased energy needs.

Economic Policies

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.

Economic Performance

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.

With PraeGlobal’s active staff, you will feel like you are at home even you are in abroad.

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