Wednesday, 10 April 2013
Investors in Kuwait Are Frustrated by Lack of Opportunities
Although Kuwait recorded a budget surplus of KD17.2bn in the first 10 months of its fiscal year, the region urgently needs to use some of that money to diversify its economy and move away from its dependence upon oil revenues, which make up a significant portion of the country's entire budget. As a word of warning, the International Monetary Fund (IMF) has forecast that oil revenues will no longer cover the country’s expenditures by 2017, which will lead to it recording its first deficit since 1999.
Investors from all over the world agree that there is enormous potential and many profitable opportunities in Kuwait. However, investing efforts so far have been prevented by the country’s lack of vision, political instability within the parliament and zoning that has continued to favor oil exploration over other industries. These obstacles must be overcome if the country hopes to make investments that will encourage economic growth in the region, as well as entice the international investment community by giving them good reasons to invest.