ARAB NATIONS
COUNTRY FOCUS – KUWAIT
Kuwait builds on strong foundations
reserves. This means Kuwait has the fourth-largest oil reserves in the world behind only Saudi Arabia, Iran, and Iraq. These oil riches make Kuwait one of the wealthiest countries in the world (US$54,260 per capita GDP), while it also has the advantage of being located on a major shipping route.
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Strong foundations in oil Oil was first found in modern- day Kuwait in 1938, and by 1953 Kuwait was the largest producer of oil on the Arabian Peninsula. It accounts for 95 per cent of the country’s total export revenues and government income and nearly 50 per cent of GDP. Kuwait is looking to expand oil production capacity and will invest in developing gas and oil facilities in the next five years. Kuwait Oil Company is a state-owned company and is one of the largest oil companies in the world. It was announced recently the company is planning to invest around US$20 billion on hydrocarbon projects during the next
espite being a small country, Kuwait has some eight per cent of the world’s proven crude oil
five years. In 2009, despite the Global Financial Crisis, Kuwait showed its eleventh consecutive budget surplus due to the high oil prices. Kuwait aims to be less dependent
on oil by diversifying its industries and playing a bigger role in the region. At the end of 2009, the Kuwaiti Government announced an economic development plan, which began to take effect in April 2010. The plan proposes that Kuwait spends $104 billion in the next four years to attract more investment into the Gulf region, boost private sector and diversify the economy away from oil. Despite the nation’s oil wealth,
Kuwait faces an ongoing challenge from its limited water resources. Local production of water for drinking and domestic purposes depends on distillation stations that take water from the sea − about 75 per cent of potable water must be distilled or imported.
Kuwait builds up a range of industry sectors Other major industries in Kuwait are shipping, construction, cement and construction materials, water
ABOVE & RIGHT: Kuwait Towers.
Photo by: Radiant Guy.
desalination, real estate and financial services. Kuwait’s banking system is well developed and its stock exchange has been established since 1962. The National Bank of Kuwait is one of the largest banks in the Arab world. The tourism industry is another
area currently being developed, following the establishment of a 20-year tourism master plan in 2004. This was immediately followed by the opening of the Sahara Resort Kuwait premier golf resort in 2005 and today many international hotel chains are entering the country. Many other mega projects are
Mosque in Kuwait City, Kuwait. Photo by: Bashar Al-Ba’noon. 116 AUSTRALIA AND THE ARAB COUNTRIES | 2010
planned for Kuwait, including the ‘City of Silk’. This is a proposed 250 square kilometre planned urban area that will include a duty free zone besides a new airport. The city will have sports, cultural, media, educational and health facilities, a large business centre, conference and environmental areas. City of Silk will also include numerous tourist attractions, hotels, spas and public gardens, as well as a proposal to build the tallest building in the world.
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