Investment reform should lay the ground for economic recovery but it faces risks relating to the geopolitical

and domestic political backdrop and the commercial environment.

• Political risk (HIGH): The election of MPs opposing austerity will make the government’s task harder.

The diplomatic embargo of Qatar by Saudi Arabia and other GCC countries could have knock-on impacts.

• Economic risk (MEDIUM): Kuwait faces a downward blip that increases the need to deliver on plans

for economic reform to diversify its economic base to insulate growth from the impact of the fall in oil

prices.

• Financial risk (LOW): The financial and banking systems are seen as stable thanks to a raft of new

regulations, while the country has substantial foreign reserves.

• Commercial risk (MEDIUM): The country ranks in the middle of the World Bank’s Doing Business

index and the government has embarked on reforms. The call for a halt to expatriate driving licences

is a worrying sign.