
Kuwait Risk May 2018
Kuwait will enjoy growth after 2017’s slump but at a slower pace initially. Risks remain 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 although it will not kick in until 2019.
Political risk (HIGH): The antagonistic political system could slow down implementations of reforms and policy initiatives 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 and a comprehensive set of macro-prudential measures is being enforced to minimise systemic risks.
Commercial risk (MEDIUM): The country ranks in the middle of the World Bank’s Doing Business index but reducing excessive regulations would foster private sector opportunities, competition, and diversification.