Kuwait will enjoy growth after 2017’s slump thanks to higher oil output and prices. Risks remain relat- ing to the geopolitical and domestic political backdrop and the commercial environment.
Economic risk (MEDIUM): Kuwait will get a boost from looser OPEC caps and the rise in prices but that may delay the much-needed diversification away from hydrocarbons.
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 govern- ment’s majority. Succession to the 88-year-old Emir remains an issue.
Financial risk (LOW): The main risks for banks are adverse domestic political and geopolitical develop- ments or renewed weakness in oil prices. Kuwait will join the JPMorgan bond index is being consid- ered for the MSCI emerging market equity index.
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 diversifica- tion.