Kuwait’s economy: oil and oil related products constitute about 55 to 60% of Kuwait’s GDP

Faisal Hasan, Senior VP of Investment Research Department at KAMCO talks about Kuwait’s economy and GDP. He believes that the major challenge for the economy is implementation of mega projects, diversification of the economy and job creation.

He says, “I think the biggest challenge is diversifying the economy and job creation. It will be a challenge to execute the many projects that have been announced to diversify the economy. We have seen some delays in execution in the past 15 years or so. There hasn’t been a very fast paced execution of plans. There have been delays, some projects were scrapped, some were re-tendered. But this time we are seeing some positive signs that things will go ahead smoothly. There are signs that PPP, Public-Private partnership model is now being used. Also there are infrastructure projects. We will see much faster execution this time around. If this doesn’t happen, then it is a major challenge for the economy because these are the projects that will diversify the economy and create long term jobs. It is required. If it gets delayed for any reason, it will be a big challenge for the economy.”