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Business Profile
Economy: Kuwait’s considerable wealth is the result of the country’s vast oil deposits, estimated at ten per cent of the world’s total known reserves. With production of over two million barrels daily, oil now accounts for about half of total output, 90 per cent of export income and three-quarters of government revenue. The economy has recovered from the extensive and systematic looting conducted by Iraqi troops during the occupation of 1990-1. This was estimated to have cost Kuwait US$170 billion, and the extent of the reconstruction was reflected in the fact that Kuwait was obliged to liquidate a large proportion of its overseas investment portfolio. These holdings, which are administered by the Kuwait Investment Office, are used partly to meet the country’s running costs (free education and social services) and partly lodged in the Fund for Future Generations. During the 1990s Kuwait, not surprisingly, invested large sums in building up a military apparatus.
The other major feature of Kuwaiti economic policy has been diversification of the domestic economy to reduce its reliance on oil. Heavy industrial projects have been eschewed in favour of light manufacturing industries such as paper and cement production. There is a small fishing industry and some agriculture. The Government has introduced a privatisation programme both as a means to raise revenue and as an instrument of economic policy. A free trade zone has also been established. Kuwait is a member of OPEC and of the Gulf Co-operation Council. The re-emergence of OPEC as a major influence appears to have triggered some disputes inside the Kuwaiti government over oil production and pricing policy. Japan, The Netherlands and Italy are the main markets for Kuwaiti oil. The principal exporters to Kuwait are Japan, the USA, Germany and the UK.
Business: Men are expected to wear suits and ties for business and formal social occasions. English is widely spoken in business circles although a few words or phrases of Arabic are always well received. Visiting cards are widely used. Some of the bigger hotels have translation and bilingual secretarial services. Government office hours: Sat-Wed 0700-1300 (winter); 0730-1330 (summer). Office hours: Sat-Wed 0730-1230 and 1600-1900.
Commercial Information: The following organisation can offer advice: Kuwait Chamber of Commerce and Industry, PO Box 775, Safat 13008, Kuwait City (tel: 805 580; fax: 240 4110; website: www.kcci.org.kw).
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