Kuwait will enjoy growth after 2017’s slump but the economy still faces risks relating to the geopolitical and domestic political backdrop and the commercial environment.
Economic risk (MEDIUM): Kuwait can expect a recovery after 2017’s oil-based recession but weaker oil prices will cap the extent of recovery.
Political risk (HIGH): Political tensions in Kuwait have heightened, in the wake of the Cabinet resignation and the election that weakened the government’s majority. Succession to the 88-year-old Emir remains an issue.
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 World Bank has also approved progress on business reform.