Economy Of Kuwait

Economy in greater depththat 2% of GDP in 2001 on sliding oil prices.
Kuwait is one of the richest countries in the MuslimThe government's two reserve funds: the Fund for
world. Current GDP per capita reached astonishingFuture Generations and the General Reserve Fund,
peak growth of 439% in the 1970s. But this provedwhich totalled nearly $100 billion prior to the invasion
unsustainable and contracted by 58% in the 1980s.in 1990, were the primary source of capital for the
However rising global oil demand helped registerKuwaiti Government during the war. While these
growth of 91% in the 1990s. Diversification is afunds were depleted to $40-$50 billion after the war,
long-term issue for this over-exposed economy.they currently are estimated around $208 billion. The
Macro-economic trendbulk of this reserve is invested in the United States,
This is a chart of trend of gross domestic product ofGermany, the United Kingdom, France, Japan, and
Kuwait at market prices estimated by theSoutheast Asia. In order of importance, foreign
International Monetary Fund with figures in millions ofassets are believed to be invested in stocks and
Kuwaiti Dinars.bonds, fixed yield instruments (mostly short term),
Yearand real estate. Kuwait follows a generally
Gross Domestic Productconservative investment policy.
US Dollar ExchangeKuwait has been a major source of foreign economic
Inflation Indexassistance to other states through the Kuwait Fund
(2000=100)for Arab Economic Development, an autonomous
Per Capita Incomestate institution created in 1961 on the pattern of
(as % of USA)Western and international development agencies. In
19801974, the fund's lending mandate was expanded to
7,764include all not just Arab developing countries.
0.27 Kuwaiti DinarsOver the years aid was provided to Egypt, Syria, and
55Jordan, as well as the Palestine Liberation
171.08Organization. During the Iran-Iraq war, significant
1985Kuwaiti aid was given to the Iraqis. The Kuwait Fund
6,450issued loans and technical assistance grants totaling
0.29 Kuwaiti Dinarsover $520 million during its fiscal year ending 30 June
682000.
71.58The stock market capitalisation of listed companies in
1990Kuwait was valued at $130,080 million in 2005 by the
5,328World Bank.
0.29 Kuwaiti DinarsOther statistics
80Investment (gross fixed): 6.6% of GDP (2005 est.)
37.00Household income or consumption by percentage
1995share:lowest 10%: NAhighest 10%: NA
8,114Agriculture - products: practically no crops; fish
0.29 Kuwaiti DinarsIndustrial production growth rate: -5% (2002 est.)
92Electricity:production: 38.19 billion kWh
62.14(2003)consumption: 35.52 billion kWh (2003)exports: 0
2000kWh (2002)imports: 0 kWh (2002)
11,570Electricity - production by source:fossil fuel:
0.30 Kuwaiti Dinars100%hydro: 0%other: 0% (2001)nuclear: 0%
100Oil:production: 2.418 million bbl/day (2005
48.92est.)consumption: 400,000 bbl/day (2006 est.)exports:
20052.57 million barrel/day (2008)imports: NAproved
21,783reserves: 105.0 billion barrel (2005 est.), including the
0.29 Kuwaiti Dinarsdivided zone.
108Natural gas:production: 8.3 billion cu m (2003
64.35est.)consumption: 8.3 billion cu m (2003 est.)exports: 0
For purchasing power parity comparisons, the USm (2002 est.)imports: 0 m (2002 est.)proved
Dollar is exchanged at 0.48 Kuwaiti Dinars only.reserves: 1.572 trillion cu m (2005)
Average wages in 2007 hover around $4,250 perCurrent account balance: $31.51 billion (2005 est.)
month for Kuwaitis. As for skilled and experiencedExports - commodities: oil and refined products,
non-Kuwaiti (Engineers, Doctors, and Managers) thefertilizers
average monthly salary is hiked up tremendously, toImports - commodities: food, construction materials,
an average of $10,000+ a month excluding living andvehicles and parts, clothing
other benefits. Please, also keep in mind that KuwaitReserves of foreign exchange & gold: $9.296
is a tax free country so all the above figures reflectbillion (2005 est.)
actual take home numbers.Exchange rates: Kuwaiti dinars per US dollar - 0.3014
Kuwait is a small country with massive oil reserves,(2004), 0.298 (2003), 0.3039 (2002), 0.3067 (2001),
whose economy has been traditionally dominated by0.3068 (2000)
the state and its oil industry. During the 1970s, KuwaitSee also
benefited from the dramatic rise in oil prices, whichKuwait Fund for Arab Economic Development
Kuwait actively promoted through its membership inKuwait Investment Authority
the Organization of Petroleum Exporting CountriesReferences
(OPEC). The economy suffered from the triple shock^ GDP: GDP per capita, current US dollars
of a 1982 securities market crash, the mid-1980s^ Select Country or Country Groups
drop in oil prices, and the 1990 Iraqi invasion andExternal links
occupation. The Kuwaiti Government-in-exileKuwait Investment Authority
depended upon its $100 billion in overseasKuwait Investment Office
investments during the Iraqi occupation in order toKuwait Economic Development at the Open Directory
help pay for the reconstruction. Thus, by 1993, thisProject
balance was cut to less than half of its pre-invasionTax Articles, Kuwait Economy Review
level. The wealth of Kuwait is based primarily on oilTax Articles, "The Tax System and Accounting
and capital reserves, and the Iraqi occupationPrinciples in Kuwait At a Glance"
severely damaged both.Deletionpedia, Companies of Kuwaitv  d  e
In the closing hours of the Persian Gulf War inKuwait
February 1991, the Iraqi occupation forces set ablazeSubdivisions
or damaged 749 of Kuwait's oil wells. All of theseTerminology
fires were extinguished within a year. Production hasCoat of arms
been restored, and refineries and facilities have beenHistory
modernized. Oil exports surpassed their pre-invasionTimeline  History of Kuwait
levels in 1993 with production levels only constrainedLaw
by OPEC quotas.Courts  Nationality  Legislation
OilPolitics
Main article: Oil industry of KuwaitGovernment  Legislature  Emir  Prime Minister 
In 1934, the ruler of Kuwait granted an oil concessionDepartments  Constitution  Elections  Parties 
to the Kuwait Oil Co. (KOC), jointly owned by theForeign relations
Anglo-Persian Oil Company (later British PetroleumGeography
Company) and Gulf Oil Corp. In 1976, the KuwaitiGeology  Mountains  Lakes  Rivers
Government nationalized KOC. The following year,Economy
Kuwait took over onshore production in the DividedHistory  Kuwait Stock Exchange  Kuwaiti dinar 
Zone between Kuwait and Saudi Arabia. KOCBanks (Central Bank of Kuwait)  Taxation 
produces jointly there with Texaco, Inc., which, by itsTransport  Communications  Energy
1984 purchase of Getty Oil Co., acquired the SaudiMilitary
Arabian onshore concession in the Divided Zone.History  Navy  National Police  Coast Guard 
In the Offshore Divided Zone, the Arabian Oil Co.Military  Kuwait Air Force  Weapons of mass
80% owned by Japanese interests and 10% each bydestruction
the Kuwaiti and Saudi Governments has produced onDemography
behalf of both countries since 1961. The originalDemographics  Languages  Religion  Cities  Towns
concession agreements will expire in January 2003;Culture
negotiations to replace the concession with aArt  Cinema  Cuisine  Education  Literature 
technical service agreement should be completed inMedia  Music  Sport  Television  Public holidays
2002.Portal  Topicsv  d  e
The Kuwait Petroleum Corporation. (KPC), anOrganization of the Petroleum Exporting Countries
integrated international oil company, is the parent(OPEC)
company of the government's operations in theAlgeria  Angola  Ecuador  Iran  Iraq  Kuwait 
petroleum sector, and includes Kuwait Oil Company,Libya  Nigeria  Qatar  Saudi Arabia  United Arab
which produced oil and gas; Kuwait National PetroleumEmirates  Venezuelav  d  e
Co., refining and domestic sales; PetrochemicalMembers of the World Trade Organization (WTO)
Industries Co., producing ammonia and urea; KuwaitAlbania  Angola  Antigua and Barbuda  Argentina 
Foreign Petroleum Exploration Co., with severalArmenia  Australia  Bahrain  Bangladesh 
concessions in developing countries; Kuwait Oil TankerBarbados  Belize  Benin  Bolivia  Botswana  Brazil 
Co.; and Santa Fe International Corp. The latter,Brunei  Burkina Faso  Burma  Burundi  Cambodia 
purchased outright in 1982, gives KPC a worldwideCameroon  Canada  Cape Verde 
presence in the petroleum industry.Central African Republic  Chad  Chile  PR China 
KPC also has purchased from Gulf Oil Co. refineriesColombia  Democratic Republic of the Congo 
and associated service stations in the Benelux nationsRepublic of the Congo  Costa Rica 
and Scandinavia, as well as storage facilities and aCte d'Ivoire  Croatia  Cuba  Djibouti  Dominica 
network of service stations in Italy. In 1987, KPCDominican Republic  Ecuador  Egypt  El Salvador 
bought a 19% share in British Petroleum, which wasEuropean Union  Fiji  Gabon  The Gambia 
later reduced to 10%. KPC markets its products inGeorgia  Ghana  Grenada  Guatemala  Guinea 
Europe under the brand Q8 and is interested in theGuinea-Bissau  Guyana  Haiti  Honduras 
markets of the United States and Japan.Hong Kong  Iceland  India  Indonesia  Israel 
Kuwait has about 94 billion barrels (15 km) ofJamaica  Japan  Jordan  Kenya  South Korea 
recoverable oil reserves. Estimated capacity, beforeKuwait  Kyrgyzstan  Lesotho  Liechtenstein 
the war, was about 2.4 million barrels (380,000 m)Macau  Macedonia  Madagascar  Malawi  Malaysia 
per day. During the Iraqi occupation, Kuwait'sMaldives  Mali  Mauritania  Mauritius  Mexico 
oil-producing capacity was reduced to practicallyMoldova  Mongolia  Morocco  Mozambique 
nothing. However, tremendous recovery andNamibia  Nepal  New Zealand  Nicaragua  Niger 
improvements have been made. Oil production wasNigeria  Norway  Oman  Pakistan  Panama 
1.5 million barrels (240,000 m) per day by the end ofPapua New Guinea  Paraguay  Peru  Philippines 
1992, and pre-war capacity was restored in 1993.Qatar  Rwanda  St. Kitts and Nevis  St. Lucia 
Kuwait's production capacity is estimated to be 2.5St. Vincent and the Grenadines  Saudi Arabia 
million barrels (400,000 m) per day. Kuwait plans toSenegal  Sierra Leone  Singapore 
increase its capacity to 3.5 million (560,000 m) barrelsSolomon Islands  South Africa  Sri Lanka 
per day by 2005.v  d  eSuriname  Swaziland  Switzerland 
Organization of the Petroleum Exporting CountriesSeparate Customs Territory of Taiwan, Penghu,
(OPEC)Kinmen, and Matsu  Tanzania  Thailand  Togo 
Algeria  Angola  Ecuador  Iran  Iraq  Kuwait Tonga  Trinidad and Tobago  Tunisia  Turkey 
Libya  Nigeria  Qatar  Saudi Arabia  United ArabUganda  Ukraine  United Arab Emirates 
Emirates  VenezuelaUnited States  Uruguay  Venezuela  Vietnam 
Social benefitsZambia  Zimbabwe
Kuwait has a fairly open economy with a lot ofAll twenty-seven member states of the European
multi-national companies operating in the oil-rich nation.Union are also members of the WTO in their own
Shown here is a Burger King restaurant situated atright: Austria  Belgium  Bulgaria  Cyprus 
the Kuwait International Airport.Czech Republic  Denmark  Estonia  Finland 
DiversificationFrance  Germany  Greece  Hungary  Ireland 
In 2007, hydrocarbon industries accounted for wellItaly  Latvia  Lithuania  Luxembourg  Malta 
over 95% of the Kuwaiti economy. Diversification ofNetherlands and Netherlands Antilles  Poland 
the economy into manufacturing industries remain aPortugal  Romania  Slovakia  Slovenia  Spain 
long-term issue.Sweden  United Kingdom.
Industry in Kuwait consists of several largeSpecial administrative region of the People's Republic
export-oriented petrochemical units, oil refineries, andof China.
a range of small manufacturers. It also includes largeDesignated name for the Republic of China
water desalinization, ammonia, desulfurization,(commonly known as Taiwan)v  d  e
fertilizer, brick, block, and cement plants. During theEconomy of Asia
invasion, the Iraqis looted nearly all movable items ofSovereignstates
worth, especially high-technology items and smallAfghanistan  Armenia1  Azerbaijan1  Bahrain 
machinery. Much of this has been replaced withBangladesh  Bhutan  Brunei  Burma2  Cambodia 
newer equipment.People's Republic of China  Cyprus1  East Timor3 
AgricultureEgypt4  Georgia4  India  Indonesia  Iran  Iraq 
Agriculture is limited by the lack of water and arableIsrael  Japan  Jordan  Kazakhstan4  North Korea 
land. The government has experimented in growingSouth Korea  Kuwait  Kyrgyzstan  Laos 
food through hydroponics and carefully managedLebanon  Malaysia  Maldives  Mongolia  Nepal 
farms. However, most of the soil which was suitableOman  Pakistan  Philippines  Qatar  Russia4  Saudi
for farming in south central Kuwait was destroyedArabia  Singapore  Sri Lanka  Syria  Tajikistan 
when Iraqi troops set fire to oil wells in the area andRepublic of China5  Thailand  Turkey4 
created vast "oil lakes". Fish and shrimp are plentiful inTurkmenistan  United Arab Emirates  Uzbekistan 
territorial waters, and largescale commercial fishingVietnam  Yemen
has been undertaken locally and in the Indian Ocean.States with limitedrecognition
ShippingAbkhazia1  Nagorno-Karabakh  Northern Cyprus 
The Kuwait Oil Tankers Co. has 35 crude oil andPalestine  South Ossetia1 
refined product carriers and is the largest tankerDependencies,autonomies,other territories
company in an OPEC country. Kuwait also is aAceh  Adjara1  Akrotiri and Dhekelia  Altai  British
member of the United Arab Shipping Company.Indian Ocean Territory  Buryatia  Christmas Island 
External trade and financeCocos (Keeling) Islands  Guangxi  Hong Kong  Inner
Kuwaiti exports in 2006Mongolia  Iraqi Kurdistan  Khakassia  Macau 
The Kuwaiti dinar is a strong currency pegged to aNakhchivan  Ningxia  Papua  Sakha Republic 
basket of currencies in which the U.S. dollar has theTibet  Tuva  West Papua  Xinjiang 
most weight. Kuwait ordinarily runs a1 Sometimes included in Europe, depending on the
balance-of-payments surplus.border definitions.  2 Officially known as Myanmar. 
Government revenues are dependent on oil3 Sometimes included in Oceania, and also known as
revenues. Kuwait's fiscal surplus in 2000 was someTimor-Leste.  4 Transcontinental country.  5
15% of GDP, while it reversed to a deficit of moreCommonly known as Taiwan.