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 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
• 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.