Kuwait will enjoy 4%+ growth after 2017’s slump thanks to higher oil output and prices. Risks remain relating to the geopolitical and domestic political backdrop and the commercial environ- ment.
Economic risk (MEDIUM): The rise in oil prices and diversi cation away from hydrocarbons will support growth but there is a long term need to achieve diversi cation away from oil.
Political risk (HIGH): The expulsion of two Islamist MPs has heightened tensions in parliament follow- ing an election that weakened the government’s majority. Succession to the 89-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. Foreign investors are now allowed to take up to 5% stakes in banks.
Commercial risk (MEDIUM): The country has slipped further down the World Bank’s Doing Business index but has taken many steps to streamline administrative procedures.