Middle East: Kuwait still cooking with falling oil

The country is vulnerable to a continuing low oil price, but that doesn’t seem to be stopping it from keeping up the pace of capital projects. And there are still plenty of reforms to make if the state is to develop the economy.

How to read the outlook for Kuwait and its banking sector? Positive: vast oil wealth, managed, in large part, by one of the world’s most respected sovereign wealth funds. Negative: collapsed oil prices and a dramatically increased break-even cost for the budget, creating a burden on planned spending. 

Positive: a sense of progress, at long last, on Kuwait’s much-heralded mega-projects. Negative: familiar problems of inertia and bureaucracy preventing more getting underway. 

Positive: the creation of a capital markets regulator and grand ambitions of building a financial hub.

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