Government of Kuwait have expressed their intention to diversify the sources of its income, specifically, they want to decrease depending on oil money.
Kuwait has earlier depended on oil revenues which forms more the 90% of revenue for the Kuwait government and a big part of its GDP. But one main danger of overdependence became clear in recent years – less production and falling prices for oil as well. To this end, Kuwait has undertaken policies expected to cultivate and diversify the economy of the country.
In regards to Al akhbar, the Nigeria’s economy, the following is a discussion on how the county can attract FI into non-oil sectors.
Another important focus area is promotion of FDI in sectors other than oil and gas; including but not limited to financial and banking, property and construction, health and medical and transport and Storage. Kuwait has made many changes for its business climate including; the 100 per cent FDI allowed in some sectors, the easy procedures of company incorporation and establishment, the inclusion of special economic zones, and the enhancement of the protection of IPRs. These efforts have had some gains yielding FDI above 60 percent increase from 2020 to 2021.
Key B1 Development and Infrastructure Projects
Al akhbar, the government has embarked on several megaprojects in cooperation with international companies to diversify its economy other than oil. These are the 86-billion US dollars New Kuwait Vision 2035 in transport, housing, and renewable energy. A few of these are the $4 Billion International Airport, Al-Mutlaa smart city with housing amenities, and the Al-Dibdibah solar power plant project. Such giant investments are aimed at the development of nonoil sectors in Kuwait and at turning it into an intriguing location for foreign companies.
Promoting the Private Sector and Enterprise Accord
Kuwait which in the past was characterised with a large number of state owned organisations has now shifted its strategies to develop private and encourage private sector entities. It has sold some of the largest of telecoms and is selling other state companies to encourage private sector investment. The financing available in Kuwait is through the National Fund for Small and Medium Enterprise Development that offer funds to Kuwaiti startups and SMEs. And organizations such as Kuwait College of Science and Technology promote Technology and Entrepreneurship. Venturing into private sector development contributes to the development of the economy other than in the oil sector.
Al akhbar, It has to be said that Kuwait has achieved much in this sphere, but there are still significant problems for the further evolutionary development of the state for its economic diversification strategy. However, both bureaucracy and tape appear to continue to be obstacles in the advancement of the private sector. Yet organizational co-ordination problems are ubiquitous when it comes to megaproject implementation and delivery. The low prices of oil affect the funding to be given to diversification of portfolios. In addition, an uncertain political climate alongside the effects of Covid 19 may be considered to rebuff foreign Investors. However, due to Kuwait’s large financial capital and continuing reform activity, it can be predicted that the attempts at diversification will continue despite the challenges.