Kuwait Businessforecast Industry Forecast

The Kuwait Business Forecast Report provides essential macroeconomic, political and financial analysis for companies doing business in Kuwait. The Kuwait Business Forecast Report helps businesses with Kuwaiti market assessment, strategic planning and decision making to promote growth and profitability in Kuwait and is an essential tool for CEOs, Chairmen, Finance Directors/CFOs, Managing Directors, Marketing/Sales Directors with commercial interests in this emerging market.

An influential new analysis of Kuwait's political, economic and financial prospects through end-2012, just published by award-winning forecasters, Business Monitor International.

 

 

 

Key Uses of the Kuwait Business Forecast Report | Kuwait's Political Outlook | Kuwait's Economic Outlook | Kuwait's Business Environment | Key Kuwait Industry Sectors | Kuwait BMI's Executive Summary | Our Middle East Subscribers | Full Range of BMI's Business Forecast Reports

Key Uses for the Kuwait Business Forecast Report

  • Forecast the pace and stability of Kuwait's economic and industry growth through end-2012
  • Identify and evaluate adverse political and economic trends in Kuwait, to facilitate risk mitigation strategies
  • Assess critical shortcomings of Kuwait's business environment that pose hidden barriers and costs to corporate profitability
  • Contextualise Kuwait's country risks against Middle East regional peers using BMI's country comparative risk ratings system
  • Target business opportunities in Kuwait's high-growth industry sectors
  • Evaluate external threats to doing business in Kuwait, including currency volatility, the commodity price boom and protectionist policies

The Kuwait Business Forecast Report by Business Monitor International includes four major sections: Kuwait's Political Outlook, Kuwait's Economic Outlook, Kuwait's Business Environment and Kuwait's Key Industry Sectors.

Kuwait's Political Outlook:

What are the political risks to doing business in Kuwait over the next 5 years?

BMI's Kuwait Country Risk Ratings evaluate the short and medium-term threats posed by government instability, adverse economic policy-making, deterioration in the business environment and external shocks.

Kuwait Political Outlook Contents

  • SWOT Analysis for the Kuwaiti Market
    Political Strengths, Weaknesses, Opportunities and Threats facing Kuwait.
  • Political Stability and Risk Assessment for Kuwait
    BMI's Risk Ratings assess explicit short and long-term risks to political stability; latest ratings, rankings and trends for Kuwait's risk are compared with Middle East regional and global averages.
  • Current Administration and Policy-making in Kuwait
    BMI profiles key policy-makers and power-brokers in the Kuwaiti government, assessing threats to the continuity of Kuwaiti economic policy, and likely changes to the business operating environment through end-2012.
  • Kuwaiti Foreign Policy
    BMI examines key trends and shifts in Kuwait's foreign relations and alignments with Middle East neighbours, the United States and Europe, focusing on external influences.

Key Benefits

  1. Benchmark Kuwait's risk profile against its neighbours, the global and regional average, allowing easy comparison of risks between key business markets.
  2. Identify, evaluate and anticipate political and security risks to the business environment in Kuwait, and to your company's current operations and future plans.
  3. Gain valuable insights into the Kuwaiti government and policy-making, through BMI's specialist team of analysts and economists, and their exclusive network of private and public sector sources.

Kuwait's Economic Outlook:

How will Kuwaiti economic policy-making and performance impact corporate profitability over 2008-12?

BMI provides fully independent 5-year forecasts for Kuwait through end-2012 for more than 35 macroeconomic variables. We evaluate Kuwaiti growth, and also forecast the impact of economic management, including central bank policy, on profitability.

Kuwait Economic Outlook Contents

The Kuwait Business Forecast Report features explicit BMI economic forecasts for Kuwait, with supporting commentary and analysis, for end-2008, 2009, 2010, 2011 and 2012 set against Kuwaiti government views. Underpinning our Kuwait forecasts are key assumptions for the global economy through end-2012, covering growth, inflation, employment, trade and investment, interest and exchange rates in the US, Japan and the Euro-zone.

Coverage of Key Economic Issues in Kuwait

  • Economic Activity in Kuwait
    Real GDP growth; industrial growth; employment growth; inflation and consumer prices; consumption (indicative wages, retail sales, consumer confidence)
  • Fiscal Policy in Kuwait
    Current macroeconomic strategy and implementation policies; government finance (revenue, expenditure, budget balance); tax reforms
  • Monetary Policy in Kuwait
    Interest rate trends (bank lending and deposit rates); inflation (retail price inflation, consumer price inflation); exchange rate policy in Kuwait; Kuwaiti currency controls; influence of foreign direct investment inflows; exchange rates and foreign exchange reserves
  • Balance of Payments in Kuwait
    Merchandise trade (exports, imports, trade balance); current account balance
  • Foreign Direct Investment in Kuwait
    Foreign direct investment approvals and inflows; the foreign investment climate
  • Kuwaiti External Debt
    Debt profile (short- and long-term debt; public and private sector exposure)

Key Benefits

  1. Rely upon BMI's 100% independent Forecast Scenarios for Kuwait and underlying assumptions - we take no advertising and are privately-owned.
  2. Exploit the benefits of BMI's comprehensive and reliable macroeconomic Kuwait database, sourced and fully maintained by BMI from an extensive network of private sector, government and multilateral contacts.
  3. Gain key insights into the current and future direction of Kuwaiti government economic policy

Kuwait's Business Environment:

How internationally competitive is Kuwait's regulatory environment, and what changes can be expected?

BMI assesses levels of transparency, flexibility of labour market, tax burden, development of the banking sector and credit availability, infrastructure and IT, foreign investment regime and trade liberalisation in Kuwait.

Kuwait Business Environment Contents

  • Kuwait's Business Environment Risk Rating with SWOT Analysis
    Short and long-term business environment risk ratings for Kuwait, benchmarked against ratings for the Middle East and neighbouring countries.
  • Country Competitiveness for Kuwait
    Competitiveness of Kuwait's business operating environment in supporting corporate growth and profitability over the 5-year forecast horizon, compared with regional neighbours.

Coverage of Key Business Environment Issues in Kuwait's Domestic Environment

Transparency, cronyism and corruption; labour market flexibility; corporate tax burden; interest rate levels; access of private sector to lines of credit; sophistication of banking sector and stock market; levels of business confidence; infrastructure and IT

  • Foreign Direct Investment in Kuwait
    Analysis of foreign investment regime, foreign ownership laws; attractiveness of business environment to foreign investors; review of major foreign direct investments over the last 24 months, and of strategic sectors attracting most interest
  • Foreign Trade with Kuwait
    Analysis of trading environment, government trade policy, liberalisation measures, tariffs and membership of trade areas

Kuwait's Key Industry Sectors

Which industry sectors in Kuwait will grow fastest, and where are the major investment opportunities in the Kuwaiti market?

BMI targets investment opportunities in Kuwait's high growth industries, including automotives, food and drink, infrastructure, oil and gas, pharmaceuticals and healthcare, telecommunications and IT.

Coverage of Kuwait's Key Industry Sectors - Kuwaiti Market Overview

Size, value and structure of industry; impact of liberalisation and privatisation on sector performance and prospects; friendliness of business environment

  • Latest Developments in Kuwait
    Review of latest projects, deals, privatisations, mergers and acquisitions, and implications for sector performance; company rankings for national and multinational companies in Kuwait; main industry players by local sales, employee size, market share and main brands, products and services
  • 5-year Industry Forecast for Kuwait
    Historic dataset (2003-2007) and BMI forecasts through end-2012, covering headline industry data broken out by sub sector

Key Benefits

  1. Target strategic sector-by-sector opportunities in Kuwait's high growth industries, attracting public expenditure and foreign investment; identify key players and competitors driving growth, investment and business opportunities.
  2. Benefit from competitive intelligence on top national and multinational companies operating in Kuwait's major industry sectors, including analysis of recent trends in sales and market share, company strategies, product launches and latest deals.

Who buys the Middle East Business Forecast Reports?

The Kuwait Business Forecast Report is an essential tool for CEOs, Chairmen, Finance Directors/CFOs, Managing Directors, Marketing/Sales Directors with commercial interests in Kuwait.

Our Business Forecast Reports are relied upon by corporates, banks, government departments and multinational organisations around the world.

Business Monitor International's Business Forecast Report subscribers include:

3M, Abbott Laboratories, Accenture, Access Bank Plc, ADNEC, American Express (Middle East) BSC, Arab Swiss Engineering Co ASEC Group, Astra Zeneca, Bahrain Petroleum Company, BNP Paribas, British American Tobacco SA (pty) Ltd, Crown Industries, Ernst & Young, GE International Inc, Gulf Holding Company, Hyder Consulting, Impact/BBDO, Intercontinental Bank Plc, Kellogg, Mobinil, PricewaterhouseCoopers, Samsung Engineering & Construction, Telkom Wholesale Services, Tesco Corporation, Tetra Pak Egypt Ltd, Visa International 

 

" As a newly established health insurance company the Central Economic Forecast and the Key Economic Sectors are of great benefit in terms of the insight they provide. "
Chief Financial, National Health Insurance Company, United Arab Emirates.

BMI's Executive Summary for Kuwait

[TOP]

New Year, Old Risks... But Overall Stability To Prevail

Kuwait is heading for another solid macroeconomic performance in 2008, with both political and economic risk ratings at the high end of the GCC bloc. We see little danger of any serious oil price correction – indeed we are forecasting a rise for the average OPEC Basket price to US$68.5/bbl in 2008 – and as such revenues, liquidity and government spending will remain generous. The areas we are concerned about – inflation, political stagnation and the stalled reform process – are not new, but may increase in prominence. Kuwait's decision to allow currency appreciation and leave the discount rate on hold will help, but price pressures will remain on the horizon, in our view, at least until end-2008.

Politically, the stability Kuwait is known for will remain in place. Its strong relations with the US and its neighbours are not under threat, and we do not think that the problems in Iran will come to full-blown conflict. Even the threat from the north appears to be diminishing: our latest Iraq Business Forecast Report paints a more upbeat picture than we thought possible even a few months ago. Domestic instability is limited to the executive, rather than the population, and although the business environment will continue to be adversely affected by the parliamentary ructions, there is little threat to overall stability and/or the oil supply.

On the economic front, the picture is overwhelmingly positive. Strong growth (slowing only due to cyclical factors towards the end of the forecast period), and surpluses in both the current and fiscal account will persist. The government has increased capital spending, and mega-projects should continue to create jobs and economic momentum. Meanwhile, the investment of excess revenues abroad via its sovereign wealth fund will ensure a continuing deficit on the capital and financial account, boding well for future flows to the current account. However, we have two concerns: low FDI flows and inflation. On the former, it is foreign expertise and private sector development that is needed, and this will only come with business environment reform.

Ongoing disputes between the broadly pro-reform government and the opposition bode ill for an already less than inspiring business environment. Despite very favourable tax conditions, the state retains a dominant role in the economy, and the country has a low score of 31.0 for market orientation in our recently updated Business Environment Ratings. Infrastructure will remain a key plus, with the government continuing to invest in construction, power and telecoms, among other things. But with one of the country's biggest companies, Zain, having stated that it was thinking of moving its headquarters abroad because of unfavourable conditions, there is clearly considerable room for improvement overall.

Read about our other Business Forecast Reports  

Asia

Australia, Bangladesh, China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, Vietnam

Europe

Bosnia & Herzegovina, Bulgaria, Caucasus, Croatia, Cyprus, Czech Republic, Estonia, Greece, Hungary, Kazakhstan & Central Asia, Latvia, Lithuania, Macedonia, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Turkey, Ukraine

Middle East

Bahrain, Iran, Iraq, Israel, Jordan, Lebanon & Syria, Kuwait, Oman & Yemen, Qatar, Saudi Arabia, UAE

Africa

Angola, Botswana, Cameroon, Cote d'Ivoire, Egypt, Ethiopia, Francophone West Africa, Ghana, Kenya, Mozambique, Namibia, Nigeria, North Africa, South Africa, Sudan, Tanzania, Uganda, Zambia, Zimbabwe

North & South America

Argentina, Brazil, Chile, Colombia, East Caribbean, Mexico, Peru, Trinidad & Tobago, Venezuela, West Caribbean

 

Business Monitor International

Business Monitor International
A Market Leader in Country Risk, Industry Intelligence and Company Research

Mermaid House, 2 Puddle Dock, Blackfriars, London EC4V 3DS, UK

BUSINESS MONITOR INTERNATIONAL's country risk analysis and forecasts, market research on leading industries, and multinational company research is relied upon by corporates, banks, government departments and multilateral organisations in over 125 countries around the world.

Country Risk Analysis and Forecasts
BMI
has for 25 years specialised in political risk analysis, financial markets analysis, and macroeconomic forecasts on 175 global markets.

Industry Intelligence and Market Research
BMI's industry research covers Automotives; Banking; Chemicals; Defence & Security; Food & Drink; Freight Transport; Information Technology; Infrastructure; Insurance; Mining; Oil & Gas; Petrochemicals; Pharmaceuticals & Healthcare; Power; Telecommunications, and Tourism.

Company Research
BMI maintains a fully-researched 55,000-site database of multinational company subsidiaries located across global markets.