List of all articles filed under “kuwait-sectors” category.
The peaceful use of nuclear energy in particular celebrates a comeback in the Middle East. The UAE and Saudi Arabia will definitely build nuclear plants in order to stand on the same level as Iran, which is on the threshold of becoming a nuclear power.
“In Kuwait , we feel that we are part of the world. When there was a high demand for energy , and oil in particular, Kuwait and Kuwait Oil Company responded positively by producing the maximum in 2008. In regard to Kuwait diversification , the long term concern is there. Kuwait should seriously think about diversifying sources of income for the country.” says Sami Al-Rushaid, Chairman and Managing Director at Kuwait Oil Company
“Islamic banking and finance started inferior thirty years ago but started to position itself very well within the Kuwait banking and Kuwait investment industry. It dominates the GCC and MENA region and has proved that its underwriting criteria are much stronger than its peers on the conventional side,” says Abdul Aziz Al-Mazooq, CEO of Muthanna Investment Company.
“I think that Kuwait banking system has gone through some very difficult times, and that 2010 will still be difficult and I think the banks have to prepare for the inevitable full turn around. How long it will take, however, is anybody’s guess”, Michel Accad, CEO of Gulf Bank
The government, however, does not follow a wait-and-see attitude. In 2004 Kuwait embarked on a twenty year master tourism plan with the number one priority being to develop and improve domestic tourism. For those who want to explore a country that is surprisingly interesting, Kuwait offers all amenities, for families in particular.
The name Kuwait derives from Akwat, which means fortress near water. For the gulf countries it has never been easy to lure tourists away from the aforementioned pearls of the orient. Egypt has the pyramids, Jordan its ancient Roman Amphitheaters and Syria its capital Damascus the world’s oldest, permanently inhabited city.
Capital standards report that “the real estate sector in Kuwait experienced unparalleled growth during 2000–2007. Post 2007, however, the performance of the sector has remained lackluster.” The contribution of the sector to GDP in Kuwait has been roughly 3.7%.
The Kuwait telecom industry is relatively mature and advanced, with high penetration rates and per spending capita. Nevertheless, the country’s penetration rates are lowest among the Gulf countries, indicating opportunities for further growth potential, reports Capital Standards. Penetrations rates: Fixed line 16.5%, Mobile 141% (number of subscribers reaching 3.56 million and increase of 10.7%, as compared to 3.22 mm subscribers at the end of 2008 according to Kuwait Internet and E-commerce Investment and Business Guide), Internet 41%.
Kuwait logistics sector developed as a result of the large logistic contracts associated with the presence of the US in Iraq. The 2 major players are KGL and Agility followed by Kuwait Dynamics and Mubarrad Transport. The western defense contractors have decreased. But on the other hand, there has been a substantial increase in international construction companies. The sector is still booming due due to the fact that the construction sector is booming with the government projects and international contractorsare actually requiring that service more. The end of war in Iraq can serve as a major opportunity for the Kuwaiti logistics companies.
Insurance sector seems to have a bright future. According to OBG “there appear to be several unique to Kuwait catalysts in the medium term future that will help expand the local appetite for insurance: a large scale, multi-year government spending plan, potential legal changes to
make more forms of insurance mandatory, an overhaul of the current system for medical insurance for expatriate workers, privatisation of currently uninsured government assets and overhaul of the countries insurance laws.” Furthermore Global Investment House reports that Kuwait has the lowest penetration rate as a percentage of premium income to GDP. (0.48%, Saudi Arabia 1%, UAE 1.8%).
The insurance sector is expected to rise significantly in Kuwait, as the concept of insurance is now spreading in the market, and more individuals and entities are adapting it. According to Capital Standards ” Gross premiums written (GPW) in Kuwait posted an impressive 11-year compounded annual growth rate (CAGR) of 11.9% since 1999. The high growth rate attracted new players and consequently, the competitive landscape of the industry underwent sea change. The total number of insurers in Kuwait currently stands at 31 – 20 Kuwaiti companies, 7 Arabian companies and 4 foreign insurers.”
