Kuwait has a proven crude oil reserves of 104 billion barrels (15 km³), estimated to be 10% of the world's reserves. According to the Kuwaiti constitution, all natural resources in the country and associated revenues are government property. Being a tax-free country, Kuwait's oil industry accounts for 80% of government revenue. Petroleum and petrochemicals accounts for nearly half of GDP and 95% of export revenues. Increase in oil prices since 2003 resulted in a surge in Kuwait's economy.
Kuwait's current oil production of 2.8 million bpd is expected to increase to 4 million bpd by 2020. To realize this production target, Kuwait Petroleum Corporation plans to spend US$51 billion between 2007 to 2012 to upgrade and expand the country's existing refineries. However, the country's economy was badly affected by the global financial crisis of 2008. In 2009, the Central Bank of Kuwait devised a US$5.15 billion stimulus package to help boost the economy.
Other major industries include shipping, construction, cement, water desalination, construction materials and financial services. Kuwait has a well developed banking system and several banks in the country date back to the time before oil was discovered. Founded in 1952, the National Bank of Kuwait is the largest bank in the country and one of the largest in the Arab world. Other prominent financial institutions based in Kuwait include the Gulf Bank of Kuwait and Burgan Bank, which is named after the largest oilfield in the country.
Kuwait's climate limits agricultural development. Consequently, with the exception of fish, it depends almost wholly on food imports. About 75% of potable water must be distilled or imported. The government is keen on decreasing Kuwait's dependence on oil to fuel its economy by transforming it into a regional trading and tourism hub. The planned US$77 billion Madinat al-Hareer (City of Silk) is the largest real estate development project in the Middle East. The Central Bank issues Kuwait's currency, the Kuwaiti dinar. As of December 2007, the dinar was the highest-valued currency unit in the world.
In 2007, estimated exports stood at US$59.97 billion and imports were around US$17.74 billion. Petroleum, petrochemical products, fertilizers and financial services are major export commodities. Kuwait imports a wide range of products ranging from food products and textiles to machinery. Kuwait's most important trading partners are Japan, United States, India, South Korea, Singapore, China, European Union and Saudi Arabia. Japan is the largest customer of Kuwaiti oil followed by India, Singapore and South Korea.
On January 5, 2010,Kuwait has started the construction of Salmiya Park in Salmiya. The Heads said "it would take atleast 4 years to complete Salmiya Park"
ECONOMY OF KUWAIT AT A GLANCE
| Currency |
Kuwaiti dinar (KD) |
| Fiscal year |
1 April–31 March |
| Trade organisations |
WTO and OPEC |
| GDP |
$135.062 billion |
| GDP growth |
8.1% (2008 est.) |
| GDP per capita |
$84,309 |
| GDP by sector |
agriculture (0.3%), industry (52.2%), services (47.5%) (2007 est.) |
| Inflation (CPI) |
11.7% (2008 est.) |
Population
below poverty line |
NA |
| Labour force |
2.225 million; note: non-Kuwaitis represent about 80% of the labor force (2008 est.) |
Labour force
by occupation |
N/A |
| Unemployment |
2.2% (2004 est.) |
| Main industries |
petroleum, petrochemicals, cement, shipbuilding and repair, desalination, food processing, construction materials |
| Ease of Doing Business Rank |
67th |
| Exports |
$95.46 billion f.o.b. (2008 est.) |
| Main export partners |
Japan 19.9%, South Korea 17%, Taiwan 11.2%, Singapore 9.9%, United States 8.4%, Netherlands 4.8%, China 4.4% Pakistan 2.4% (2007) |
| Imports |
$26.54 billion f.o.b. (2008 est.) |
| Main import partners |
United States 12.7%, Japan 8.5%, Germany 7.3%, China 6.8%, South Korea 6.6%, Saudi Arabia 6.2%, Italy 5.8%, United Kingdom 4.6% (2007) |
| Gross external debt |
$38.82 billion (31 December 2008 est.) |
Investment (gross fixed): 6.6% of GDP (2005 est.)
Household income or consumption by percentage share:
- lowest 10%: NA
- highest 10%: NA
Agriculture - products: practically no crops; fish
Industrial production growth rate: -5% (2002 est.)
Electricity:
- production: 38.19 billion kWh (2003)
- consumption: 35.52 billion kWh (2003)
- exports: 0 kWh (2002)
- imports: 0 kWh (2002)
Electricity - production by source:
- fossil fuel: 100%
- hydro: 0%
- other: 0% (2001)
- nuclear: 0%
Oil:
- production: 2,418,000 bbl/d (384,400 m3/d) (2005 est.)
- consumption: 400,000 bbl/d (64,000 m3/d) (2006 est.)
- exports: 2.57 million barrels per day (409×10^3 m3/d) (2008)
- imports: NA
- proved reserves: 105.0 billion barrels (16.69×10^9 m3) (2005 est.), including the divided zone.
Natural gas:
- production: 8.3 billion cu m (2003 est.)
- consumption: 8.3 billion cu m (2003 est.)
- exports: 0 m³ (2002 est.)
- imports: 0 m³ (2002 est.)
- proved reserves: 1.572 trillion cu m (2005)
Current account balance: $31.51 billion (2005 est.)
Exports - commodities: oil and refined products, fertilizers
Imports - commodities: food, construction materials, vehicles and parts, clothing
Reserves of foreign exchange & gold: $9.296 billion (2005 est.)
Exchange rates: Kuwaiti dinars per US dollar - 0.3014 (2004), 0.298 (2003), 0.3039 (2002), 0.3067 (2001), 0.3068 (2000)
http://en.wikipedia.org/wiki/Economy_of_Kuwait
|
