Kuwait and Germany – Opportunities for Further Leverage

Executive Summary

Trade relationship between modern Kuwait and Germany started in the 1960’s. Initially, Germany maintained its relationship with the GCC countries including Kuwait for trade alone, rather than entering into strategic partnerships. Germany’s dependence on gulf oil was also minimal as it imports most of its requirement from Russia. Kuwait, however exported a small portion of oil and pearls to Germany while it imported automobiles and other luxury goods from Germany. Both Kuwait and Germany expanded their relationships in the 2000’s to a strategic level and have maintained cordial relationship on economic, political, trade, cultural and to some extent military related matters. Drawing lessons in sustainable economic practices from other countries is difficult because nations have differing characteristics and social and institutional backdrops. However, Germany’s rise from low economic vitality to that of a major world economy specializing in knowledge-intensive industries within a matter of decades indicates that the country has important insights to offer. This report analyzes the lessons on offer from Germany, and possibilities for potential tie-ups in areas of Kuwaiti interest.