By Mohamed Ragab, CNN Week
Updated 11:51 AM April 26, 2024
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| Fheed Alswiri - Kuwait |
Journalist Fheed Alswiri explains the stages of Kuwait’s development in the last 5 years and the advantages as a strong business and tourism destination in the GCC countries.
Manifestations of development in the State of Kuwait The economy of the State of Kuwait
Among the most important economic indicators that show the extent of economic development in the country for the year 2020 AD are the following: Gross Domestic Product: $306.4 billion. Economic growth rate: 1.7% Compound annual growth for the last 5 years: 0.5%. Average annual per capita income: $67,000. Unemployment rate: 2.1% Inflation rate: 0.7% Amount of foreign direct investment: $345.5 million. The aforementioned economic indicators contributed to Kuwait reaching an economic freedom index of 63.2, and its economy now ranks 79th in the world as the most economically free country. This progress is due to the Kuwaiti government’s commitment to high degrees of integrity and economic freedom, as Kuwait ranks eighth out of 14 countries in The Middle East and North Africa region. The degree of economic integrity in Kuwait is higher than regional and global averages.
Kuwait remained classified within the category of moderate economic freedom for a long period, starting in 1996 AD, when its economy was included in the economic index, and GDP growth suffered stagnation during the five years preceding 2020 AD, then the priority of the Kuwaiti government became activating economic reform, diversifying its sources, and not relying solely on The oil economy, and to do so, it had to solve the problems that affect the growth of the economy, including government corruption, bureaucratic expansion, and improving the investment climate and attracting it. The Kuwaiti economy depends on 3 main sectors, which are as follows: The oil sector: Kuwait contains 9% of the total global oil reserves, or about 100 billion barrels of oil, which made the oil sector one of the largest pillars of the Kuwaiti economy, with approximately 48.4% of the gross domestic product, and more. Of 90% of the country’s exports, Kuwait plans to invest more than 87 billion US dollars in the oil sector by 2030, so that its contribution to the domestic.product will be approximately 59.6%, and so that it includes 25.4% of the total workforce. Services sector: This sector represents about 51.1% of the gross domestic product, and about 72.4% of the total Kuwaiti population works in it. A number of sub-sectors also follow this sector, such as: the real estate sector and financial services. The agricultural sector:: The agricultural sector contributes a very small percentage of the gross domestic product due to the country’s desert nature and water shortage.
The agricultural sector consists mainly of fishing, and employs only 2.2% of the workforce. Construction in the State of Kuwait The building and construction market in Kuwait includes a large number of projects in various sectors, such as: commercial construction, residential construction, industrial construction, infrastructure projects, and energy supply projects and facilities, as the Kuwaiti government has developed a plan for Kuwaiti development during the period 2015-2020 AD. It aims to make Kuwait a regional financial and commercial center by the year 2035 AD, and Kuwait made its most important priority during the development plan in the field of construction accelerating economic reforms and diversifying its sources away from the gas and oil sector. This plan is a long-term plan with a future vision for Kuwait in the year 2035 AD.
The strategic plan includes two main parts, which are as follows: implementing major economic reforms aimed at empowering and supporting the private sector. Implementing a large number of ambitious projects over 5 years. An initial budget was set for the implementation of the Kuwaiti development plan amounting to $155 billion. This budget focuses on implementing 500 infrastructure development and construction projects, housing
projects throughout Kuwait, and the expansion of energy and natural gas projects. The plan allocated 421 projects from the previous development plan in addition to 92 projects. Another to be implemented during the new plan period between 2015 AD and 2020 AD, and among the most important projects included in this plan are the following: establishing a railway network that connects all parts of the Kuwaiti capital within 3 lines passing through 61 different stations, and the investment in it amounts to a value of 20 billion dollars.
Implementing a railway network worth $27.56 billion that will connect Kuwait with other neighboring Gulf countries. Construction of Mubarak Al-Kabeer Port on Bubiyan Island. Development of the Silk City. Creating tourist attractions for the Kuwaiti island of Failaka, which is 20 km from the coast. Developing sanitation, solid waste and water treatment projects throughout Kuwait. Financing a project to expand the capacity of Kuwait International Airport. Supp
Manifestations of development in the State of Kuwait The economy of the State of Kuwait
Among the most important economic indicators that show the extent of economic development in the country for the year 2020 AD are the following: Gross Domestic Product: $306.4 billion. Economic growth rate: 1.7% Compound annual growth for the last 5 years: 0.5%. Average annual per capita income: $67,000. Unemployment rate: 2.1% Inflation rate: 0.7% Amount of foreign direct investment: $345.5 million. The aforementioned economic indicators contributed to Kuwait reaching an economic freedom index of 63.2, and its economy now ranks 79th in the world as the most economically free country. This progress is due to the Kuwaiti government’s commitment to high degrees of integrity and economic freedom, as Kuwait ranks eighth out of 14 countries in The Middle East and North Africa region. The degree of economic integrity in Kuwait is higher than regional and global averages.
Kuwait remained classified within the category of moderate economic freedom for a long period, starting in 1996 AD, when its economy was included in the economic index, and GDP growth suffered stagnation during the five years preceding 2020 AD, then the priority of the Kuwaiti government became activating economic reform, diversifying its sources, and not relying solely on The oil economy, and to do so, it had to solve the problems that affect the growth of the economy, including government corruption, bureaucratic expansion, and improving the investment climate and attracting it. The Kuwaiti economy depends on 3 main sectors, which are as follows: The oil sector: Kuwait contains 9% of the total global oil reserves, or about 100 billion barrels of oil, which made the oil sector one of the largest pillars of the Kuwaiti economy, with approximately 48.4% of the gross domestic product, and more. Of 90% of the country’s exports, Kuwait plans to invest more than 87 billion US dollars in the oil sector by 2030, so that its contribution to the domestic.product will be approximately 59.6%, and so that it includes 25.4% of the total workforce. Services sector: This sector represents about 51.1% of the gross domestic product, and about 72.4% of the total Kuwaiti population works in it. A number of sub-sectors also follow this sector, such as: the real estate sector and financial services. The agricultural sector:: The agricultural sector contributes a very small percentage of the gross domestic product due to the country’s desert nature and water shortage.
The agricultural sector consists mainly of fishing, and employs only 2.2% of the workforce. Construction in the State of Kuwait The building and construction market in Kuwait includes a large number of projects in various sectors, such as: commercial construction, residential construction, industrial construction, infrastructure projects, and energy supply projects and facilities, as the Kuwaiti government has developed a plan for Kuwaiti development during the period 2015-2020 AD. It aims to make Kuwait a regional financial and commercial center by the year 2035 AD, and Kuwait made its most important priority during the development plan in the field of construction accelerating economic reforms and diversifying its sources away from the gas and oil sector. This plan is a long-term plan with a future vision for Kuwait in the year 2035 AD.
The strategic plan includes two main parts, which are as follows: implementing major economic reforms aimed at empowering and supporting the private sector. Implementing a large number of ambitious projects over 5 years. An initial budget was set for the implementation of the Kuwaiti development plan amounting to $155 billion. This budget focuses on implementing 500 infrastructure development and construction projects, housing
projects throughout Kuwait, and the expansion of energy and natural gas projects. The plan allocated 421 projects from the previous development plan in addition to 92 projects. Another to be implemented during the new plan period between 2015 AD and 2020 AD, and among the most important projects included in this plan are the following: establishing a railway network that connects all parts of the Kuwaiti capital within 3 lines passing through 61 different stations, and the investment in it amounts to a value of 20 billion dollars.
Implementing a railway network worth $27.56 billion that will connect Kuwait with other neighboring Gulf countries. Construction of Mubarak Al-Kabeer Port on Bubiyan Island. Development of the Silk City. Creating tourist attractions for the Kuwaiti island of Failaka, which is 20 km from the coast. Developing sanitation, solid waste and water treatment projects throughout Kuwait. Financing a project to expand the capacity of Kuwait International Airport. Supp
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