Middle East / Africa
Country profile: Kuwait
|Location:||Middle East, bordering the Persian Gulf, between Iraq and Saudi Arabia|
|Climate:||dry desert; intensely hot summers; short, cool winters|
|Terrain:||flat to slightly undulating desert plain|
|Size:||17820 sq. km total (Land area: 17820 sq. km )|
|Languages:||Arabic (official), English widely spoken|
|Legal system:||civil law system with Islamic law significant in personal matters; has not accepted compulsory ICJ jurisdiction|
|Currency:||Kuwaiti dinar (KD)|
Kuwait's economy is heavily dependent on oil export revenues. Current high oil prices are producing a surge in oil export revenues for Kuwait, with 2005 the best year for oil export revenues in the past decade. Non-oil sectors of the Kuwaiti economy, particularly services, have also experienced strong growth fueled by the inflow of oil revenues. Real gross domestic product (GDP) grew by an estimated 4.8 percent in 2005, while inflation was running at around 4.1 percent. Despite its currently strong macroeconomic position, including sizable fiscal and trade surpluses, Kuwait would like to diversify its economy away from near-complete dependence on oil revenues. Currently, the country relies on oil revenues for around 90-95 percent of total export earnings and around two-fifths of GDP. Kuwait channels around 10 percent of its oil revenues into the "Future Generations Fund" for the day when oil income runs out. The bulk of this reserve is invested in the United States, Germany, the United Kingdom, France, Japan, and Southeast Asia. In order of importance, foreign assets are believed to be invested in stocks and bonds, fixed yield instruments (mostly short term), and real estate. Kuwait follows a generally conservative investment policy.
With approximately 65 percent of the population under the age of 25, and with around 90 percent of employees in the private sector currently non-Kuwaiti citizens, creating jobs for young Kuwaitis is a major objective of the government. Kuwait hopes to attract additional foreign investment, and has started a program to privatize state-owned businesses (outside the oil sector). Privatization is complicated by the need to protect the jobs of Kuwaiti citizens, who traditionally have been employed mostly (over 90 percent) by state-owned enterprises and the government.
In March 2001, Kuwait's national assembly passed the "Foreign Direct Investment Act," which aimed at promoting foreign investment. Among other things, the Act eased restrictions on foreign banks, provided long-term protection to foreign investors against nationalization or confiscation, and eliminated the requirement for foreign companies to have a Kuwaiti sponsor or partner. In the oil sector, the Kuwaiti constitution forbids foreign ownership of Kuwait's mineral resources, but the Kuwaiti government is exploring allowing foreign investment in upstream oil development under terms (see below for more details) which provide for per-barrel fees to the foreign firms rather than traditional production sharing agreements (PSA's). The Kuwaiti government is currently making an attempt to enact legislation to facilitate foreign investment in the upsteam oil sector, as part of its "Project Kuwait" initiative to boost production capacity. The Kuwaiti parliament is expected to take up the proposed legislation sometime in late 2006, but with strong opposition from several legislators .
Energy production and consumption
|Production:||2 million bbl/day (2005 est.)||11 billion cu m (2005 est.)|
|Consumption:||333,000 bbl/day (2005 est.)||11 billion cu m (2005 est.)|
|Exports:||2 million bbl/day (2004 est.)|
|Imports:||2,611 bbl/day (2004 est.)|
|Reserves:||101 billion bbl/day (2007 est.)||1 trillion cu m (1 January 2006 est.)|
Kuwait - recent news
|18 Apr 23
||Kuwait: Sparrows Group is the first non-OEM contractor to provide services in Kuwait
Sparrows Group, the engineering and maintenance services specialist for the global energy and industrial sectors, has been awarded work in Kuwait for the first time. Sparrows has been recognised as an approved non-OEM maintenance provider, becoming the first non-OEM service company to hold the NOC approvals to operate in the country.
|05 Jan 23
||Kuwait: Technip Energies awarded a large Project Management Consultancy contract by Kuwait Oil Company
Technip Energies has been awarded a large contract for Project Management Consultancy by Kuwait Oil Company. The five-year framework agreement contract covers front-end engineering design (FEED), project management, and associated services for KOC’s major projects.
|02 Dec 21
||Kuwait: Weatherford awarded digital oilfield project in Kuwait
Weatherford International has been awarded a three-year digital oilfield contract from one of the digital leaders in the upstream industry, Kuwait Oil Company ('KOC'), aiming to support its digital transformation strategy in North Kuwait Heavy Oil field and for deploying its Integrated Enterprise Excellence Platform across KOC.
|18 Jun 21
||Kuwait: Kuwait Oil Company selects Halliburton for digital transformation projects
Halliburton has received a contract from Kuwait Oil Company (KOC), a world leader in digital transformation, to expand KOC’s digital transformation journey by implementing solutions to maximize operational efficiency and increase production.
|27 May 21
||Kuwait: Technip Energies awarded contract by KIPIC for contracts in southern Kuwait
Technip Energies has been awarded a significant contract for Project Engineering and Management Services (PEMS) by Kuwait Integrated Petroleum Industries Company (KIPIC) for various projects in the Al-Zour complex in southern Kuwait.
Kuwait - more news
Other countries in this region
- Central Africa Republic,
- Congo (Brazzaville),
- Congo (Democratic Rep.),
- Cote d'Ivoire,
- Equatorial Guinea,
- Guinea (Republic),
- Guinea Bissau,
- Sao Tome,
- Saudi Arabia,
- Sierra Leone,
- South Africa,
- South Sudan,
- United Arab Emirates,
- Western Sahara,