Kuwait Key Partners

Executive Summary

What is this report about?
In a multipolar world economy, Kuwait’s architecture of trade relationships can determine the extent of its significance as a player on the stage of international trade. The gulf state has been assiduous in building up significant trade ties with various global economic players. While trade and investments have surged ahead since the turn of the century, there is still scope for gleaning more benefits from the trade partners. The country is undergoing a transition, with the economy opting for more reforms, moving away from oil to diversify revenues, investing in renewable sources of energy etc. Kuwait could utilize not only the resources, but also the experience of its trading partners, in making this change. Kuwait has attracted little FDI, in part because of legal and bureaucratic impediments, and FDI inflows over the years have largely been restricted to its time tested trading partners – the UAE, the U.S, France and the U.K. While market reforms are underway to attract more FDI, it remains to be seen how successfully they are implemented, and whether the outcomes are beneficial to the gulf state. In terms of research and development, there needs to be more collaboration with trading partners, as well as realizing potential opportunities for investment and joint growth. This report analyzes the lessons on offer from major global powers, and possibilities for potential tie-ups in areas of Kuwaiti interest.

Who will benefit and why?
The report will benefit anyone tracking the Kuwait’s global relationships in trade, investments and bilateral cooperation, such as regulators and government agencies, bankers, economists, academia and cross-border traders. This report would help these entities to gain an understanding of the relationship at present, and provide an outlook for the future.

How exhaustive is this report?
We have analyzed the trade and investment relationships of Kuwait, and the various avenues where bilateral relationship exists. The report examines the factors that have led to growth of major global powers, and the lessons that Kuwait can learn from them. We have also highlighted how Kuwait can strengthen its own economy by leveraging on the strengths of its trade partners, and finally, the sectors that should be of interest to Kuwait, both for potential tie-ups and investments.