Kuwait Business Forecast Q1 2007

Content

• Chapter 1: Political Outlook
  • BMI Core Scenario
  • SWOT Analysis
  • BMI Political Risk Ratings
  • Domestic Politics
  • Increasing Democratic Freedom: A Threat To Stability?
  • Recent political noise has confirmed Kuwait's position as the most democratically free state in the Gulf,
  • particularly following the elections, which resulted in a landmark victory for a coalition of opposition 'parties'
  • While this does pose some risk to stability in the emirate, we do not see it translating into any real deterioration
  • of the business environment
  • Table: Cabinet List
• Chapter 2: Economic Outlook
  • BMI Core Scenario
  • SWOT Analysis
  • Introduction
  • Economic Activity
  • Lower Oil Prices: No Real Threat
  • Although we do envisage oil prices falling, economic growth will remain robust over the forecast period,
  • barring any sharper than expected decline in the energy markets The government will continue to spend
  • generously to maintain political stability
  • Table: Economic Activity
• Chapter 3: Special Report
  • BMI Sovereign Risk Ratings
  • Table: BMI Sovereign RIsk Ratings
  • Middle East and Africa
  • Table: Middle East & Africa Sovereign Ratings - Evolution of Willingness to Pay
  • Table: Middle East & Africa Sovereign Ratings - Evolution of Ability to Pay
• Chapter 4: Business Environment
  • BMI Core Scenario
  • SWOT Analysis
  • BMI Business Environment Risk Ratings
  • Legal Issues
  • Labour Force
  • Table: Demographic Indicators (2005)
  • Table: Employment Indicators
  • Foreign Investment Policy
  • FDI Regime
  • Table: Middle East & Africa Annual FDI Inflows
  • Table: Kuwait, Annual FDI Inflows
  • Foreign Trade Regime
  • Tax Regime
• Chapter 5: Key Sectors
  • Defence
  • Military Structure & Defence Industry
  • Kuwait lacks an established indigenous defence industry of significance, and its armed forces are almost
  • entirely reliant upon procurements from foreign sources for equipment and training The continuation of the
  • upgrading of Kuwaiti military hardware and equipment is unlikely to decrease in the near future given the
  • ongoing US involvement in the region and the current strength of the Kuwaiti economy On this basis, high
  • military expenditure is therefore likely to continue into the foreseeable future
  • Table: Kuwait Defence Sector - Historical Data & Forecasts
  • Petrochemicals
  • Market Overview
  • While Kuwait has a very small petrochemicals industry, the government is keen to accelerate its development
  • through a series of initiatives as part of a process designed to help stabilise the country's GDP during periods
  • of low crude prices, and diversify the economy away from over-reliance on oil revenues KPC has said it will
  • spend US$8bn on petrochemicals over the next 15 years, part of an overall investment of US$64bn in the
  • hydrocarbons sector
  • Table: Kuwait Petrochemicals Sector - Historical Data and Forecasts