Kuwait is a small oil-based economy. The Kuwaiti Dinar is the highest-valued currency unit in the world. Non-oil industries include financial services. According to the World Bank, Kuwait is the fourth richest country in the world per capita. Kuwait is the second richest GCC country per capita (after Qatar).
Video Economy of Kuwait
Finance
Kuwait has a leading position in the financial industry at GCC; the gulf that separates Kuwait from its Gulf countries in terms of tourism, transportation, and other diversification measures does not exist in the financial sector. The Emir has promoted the idea that Kuwait should focus its energies, in terms of economic development, on the financial industry.
The historical significance of Kuwait (among Gulf monarchies) in finance dates from the founding of the National Bank of Kuwait in 1952. This bank is the first publicly traded public company in the Gulf. In the late 1970s and early 1980s, alternative stock markets, Gulf stock trading companies, appeared in Kuwait, Souk Al-Manakh. At its peak, its market capitalization is the third highest in the world, behind only the US and Japan, and above the UK and France.
Kuwait has a large wealth management industry that stands out in this region. The Kuwaiti investment company manages more assets than any other GCC state, except Saudi Arabia which is much larger. Kuwait's Financial Center, in its crude calculations, estimates that Kuwaiti companies contribute more than a third of the total assets managed at the GCC. Kuwait's relative strength in the financial industry extends to its stock market. Over the years, the total valuations of all Kuwaiti listed companies have exceeded their value in other GCC exchanges, except Saudi Arabia. In 2011, financial and banking companies formed more than half of Kuwait's stock market capitalization; among all Gulf countries, the market capitalization of Kuwait's financial sector companies, in total, behind only Saudi Arabia.
In recent years, Kuwaiti investment companies have invested a large percentage of their assets abroad, and their foreign assets have become much larger than their domestic assets.
Kuwait is a major source of foreign economic aid to other countries through the Kuwait Fund for Arab Economic Development, an autonomous state institution created in 1961 on the pattern of Western and international development agencies. Over the years, assistance is provided annually to Egypt, Syria and Jordan, as well as the Palestine Liberation Organization. In 1974, the loan lending mandate was extended to cover all developing countries of the world.
Maps Economy of Kuwait
Oil
In 1934, the Emir Kuwait gave oil concessions to Kuwait Oil Co. (KOC), jointly owned by Anglo-Persian Oil Company (later British Oil Company) and Gulf Oil Company In 1976, the Government of Kuwait nationalized KOC. The following year, Kuwait took over land production in the Split Zone between Kuwait and Saudi Arabia. KOC co-produced there with Texaco, Inc., who in 1984 purchased Getty Oil Co., acquired Saudi Arabia's land concession in the Divided Zone.
In the Offshore Zone, Arabian Oil Co. - 80% owned by Japanese interests and 10% respectively by Kuwaiti and the Saudi Government - has been producing on behalf of the two countries since 1961. The original concession agreement will expire in January 2003; negotiations to replace the concession with the technical service agreement should be completed in 2002.
Kuwait Petroleum Corporation (KPC), an integrated international oil company, is the parent company of government operations in the petroleum sector, and includes Kuwait Oil Company, which produces oil and gas; Kuwait National Petroleum Co., refineries and domestic sales; Petrochemical Industries Co., produces ammonia and urea; Kuwait Foreign Petroleum Exploration Co., with several concessions in developing countries; Kuwait Oil Tanker Co.; and Santa Fe International Corp. The latter, purchased directly in 1982, gave KPC a worldwide presence in the petroleum industry.
KPC has also purchased from Gulf Oil Co. and related service stations in Benelux and Scandinavian countries, as well as storage facilities and service station networks in Italy. In 1987, KPC bought 19% of British Petroleum shares, which were subsequently reduced to 10%. KPC markets its products in Europe under the Q8 brand and is interested in the US and Japanese markets.
Kuwait has about 94 billion barrels (14.9 km 3 ) of recoverable oil reserves. Estimated capacity, before the war, about 2.4 million barrels per day (380 ÃÆ'â € " 10 < soup> 3 m 3 /d). During the occupation of Iraq, Kuwait's oil-producing capacity was reduced to almost nothing. However, remarkable recovery and improvement have been made. Oil production is 1.5 million barrels per day (240 ÃÆ'â € 10 3 Ã, m 3 /d) by the end of 1992, and the prewar capacity was restored in 1993. Kuwait's production capacity is estimated at 2.5 million barrels per day (400 ÃÆ'â € " 10 m 3 /d) Kuwait plans to increase its capacity to 3.5 million barrels per day (560 ÃÆ'â € " 10 3 m 3 /d) in 2005.
Backup funds
The Kuwait Investment Authority (KIA) is Kuwait's sovereign wealth fund specializing in foreign investment. KIA is the sovereign wealth fund of the oldest in the world. Since 1953, the Kuwaiti government has directed its investments to Europe, the United States and Asia Pacific. By 2015, ownership is worth $ 592 billion in assets. This is the 5th largest sovereign wealth fund in the world.
KIA manages two funds: the General Reserve Fund (GRF) and the Future Generation Fund (FGF). GRF is the main treasurer for the government. It receives all state revenue and all national expenditures are paid out of this fund. KIA does not disclose its financial assets in public, but it is estimated that KIA has $ 410 billion in assets in February 2014.
KIA was the main source of capital for the Kuwaiti government during the Gulf War. The Kuwaiti government relies on KIA to pay for postwar coalition and reconstruction costs. KIA was worth $ 100 billion before 1990, KIA funds ran out to $ 40- $ 50 billion after the Gulf War.
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The Future Generation Fund (FGF) was created in 1976 by transferring 50% of the general reserve fund at that time. FGF is a savings fund for future generations. 25% of all national revenues are transferred annually to such funds.
All FGF is invested overseas, with an estimated 75% invested in the US and Europe and the rest in emerging markets, especially China and India.
Science and technology
To date, Kuwait has registered 384 patents, the second highest figure in the Arab world. Kuwait produces the largest number of patents per capita in the Arab world and OIC. The government has implemented various programs to encourage innovations that result in patents. Between 2010 and 2016, Kuwait recorded the highest growth in patents in the Arab world.
Entrepreneurship
In the last five years, there has been a significant increase in self-employment and small business in Kuwait. The informal sector also increased, mainly due to the popularity of the Instagram business. Many Kuwaiti businessmen use Instagram-based business models.
Tourism
Tourism accounts for 1.5 percent of GDP. By 2016, the tourism industry generates nearly $ 500 million in revenue. The annual "Hala Febrayer" Festival attracts many tourists from neighboring GCC countries, and includes events including music concerts, parades and carnivals. The festival is a one-month anniversary for the liberation of Kuwait, and runs from February 1st to February 28th. Liberation Day itself is celebrated on 26 February.
Agriculture
By 2017, agriculture (including fisheries) accounts for nearly 0.4 percent of gross domestic product and does not offer an important source of work. About 4 percent of the economically active population works in agriculture, almost all foreigners. The majority of livestock owners are investors. The agricultural sector provides fruits and vegetables for sale in state supermarkets. Total agricultural land covers 1 521 sq km in 2014. Agriculture is limited by the lack of water and fertile soil. The government has experimented in growing food through hydroponics and carefully managed farms. However, much of the land suitable for agriculture in southern central Kuwait was destroyed when Iraqi forces burned oil wells in the area and created large "oil lakes". Fish and shrimp are abundant in territorial waters, and large-scale fishing has been done locally and in the Indian Ocean.
Transport
Kuwait has a wide and modern road network. The highway is extended 5,749 km (3,572 mi), of which 4,887 km (3,037 mi) is paved. There are more than 2 million passenger cars, and 500,000 taxis, buses and commercial trucks are used. On the main highway, the maximum speed is 120 km/h (75 mph). Since there is no rail system in this country, most people travel by car.
The country's public transport network is almost entirely made up of bus routes. The state-owned Kuwait Public Transport Company was established in 1962. It operates local bus routes throughout Kuwait as well as long-distance services to other Gulf countries. The main private bus company is CityBus, which operates about 20 routes across the country. Another private bus company, Kuwait Gulf Link Public Transport Service, started in 2006. It runs local bus routes throughout Kuwait and services remotely to neighboring Arab countries.
There are two airports in Kuwait. Kuwait International Airport serves as a major center for international air travel. State-owned Kuwait Airways is the largest airline in the country. Some of the airport complexes are designated as Al Mubarak Air Base, which contains Kuwait Air Force headquarters, as well as Kuwait Air Force Museum. In 2004, Kuwait's first private airline, Jazeera Airways, was launched. In 2005, the second private airline, Wataniya Airways was established.
Kuwait has one of the largest shipping industry in the region. Kuwait's General Authority manages and operates ports in Kuwait. The country's major commercial ports are Shuwaikh and Shuaiba, which handle 753,334 joint cargoes of TEU in 2006. Mina Al-Ahmadi, the country's largest port, handles most of Kuwait's oil exports. The construction of another large port located on the island of Bubiyan began in 2007. The port is expected to handle 1.3 million TEUs when operations begin.
See also
- Kuwait Fund for Arab Economic Development
- Kuwait Investment Authority
References
External links
- Kuwait Investment Authority
- Kuwait Investment Office
- Kuwait's Economic Development at Curlie (based on DMOZ)
- Deletionpedia, Kuwaiti Companies
Source of the article : Wikipedia
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