KUWAIT ECONOMY

History of Kuwait Kuwait was started by the Bani Utbah tribe in 1709 The Bani Utbah first called Kuwait Guraine and their first town

was called Kuwait meaning little fort.. In the year 1760 however Kuwait started to trade with India and

major ports on the Mediterranean Sea. In 1775 many Basra's leading merchant families moved to

Kuwait because of the Persian invasion. This made Kuwait's economy greatly increase.

After that time country was transformed into a highly developed welfare state with a free economy.

Kuwait's troubled relationship with neighboring Iraq formed the core of its foreign policy from late 1980s onwards. Its first major foreign policy problem arosemarket when Iraq claimed Kuwaiti territory

DIVERSIFICATION Kuwait's first free-trade zone was inaugurated in

1999. Kuwait has a well-developed banking system. Kuwait's revenues rely significantly on oil, increasing

from 85% of total revenues in 2001 to 95% in 2013. Prior to the Gulf War, Kuwait was successfully

diversifying its economy. The development of non-oil sectors significantly declined

after the Iraqi invasion in 1990, after hundreds of companies and foreign institutions relocated to Dubai and Bahrain

During the past 20 years, Kuwait has not implemented any development projects with significant economic value, while the dependence on oil revenues has increased.

Between 2006 and 2012, political turmoil hindered attempts at economic diversification.

OIL AND CHEMICAL INDUSTRY In 1934, the Emir of Kuwait granted an

oil concession to the Kuwait Oil Co. (KOC), jointly owned by the Anglo-Persian company Gulf Oil Corporation In 1976,

Kuwait Oil Company, (KPC) which produced oil and gas; Kuwait National Petroleum Co., refining and domestic sales; Petrochemical Industries Co., producing ammonia and urea; Kuwait Foreign Petroleum Exploration Co., with several concessions in developing countries; Kuwait Oil Tanker

KPC a worldwide presence in the petroleum industry. Oil production was 1.5 million barrels per day (240×103 m3/d) by the end of 1992, and pre-war capacity was restored in 1993. Kuwait plans to increase its capacity to 3.5 million barrels per day (560×103 m3/d) by 2005

INVESTMENTS The future generations fund (FGF) was

created in 1976 by transferring 50% from the general reserve fund

25% of all state revenues are annually transferred to the fund.

All of the FGF is invested abroad, with an estimated 75% invested in the us and Europe and the rest in emerging markets, mainly china and India.

Kuwait is the Arab world's largest foreign investor, with $8.4 billion in FDI outflows in 2013. 

In 2013, Kuwait almost tripled its foreign investments. 

Kuwait has doubled investments in the UK to more than $24 billion. 

In 2014, Kuwait became the largest investor in china (RMB market).

AGRICULTURE Agriculture accounts for 1% of Kuwait's

economy and 8% of the gross domestic product

 The agricultural sector provides fruit and vegetables for sale in the country's supermarkets. Agriculture is limited by the lack of water and arable land.

The government has experimented in growing food through hydroponics and carefully managed farms. However, most of the soil which was suitable for farming in south central

Kuwait was destroyed when Iraqi troops set fire to oil wells in the area and created vast "oil lakes".

Fish and shrimp are plentiful in territorial waters, and large scale commercial fishing has been undertaken locally and in the Indian Ocean

SHIPPING AND TOURISM The Kuwait Oil Tankers Co. has 35

crude oil and refined product carriers and is the largest tanker company in an OPEC country. Kuwait also is a member of the United Arab Shipping Company.

Sultan Gallery, Dar Al Funoon, contemporary Art Platform (CAP),

Free Art Atelier,fa Gallery, Boushahri Gallery,, Ghadir Gallery

Bayt Lothan, Al Othman Gallery, Museum Of Modern Art Al-makan, Den Gallery (Shuwaikh Market)al Adwani Art Gallery, Masaha 13,am Art & Design Gallery,

House Of Mirrors, 360 Exhibition Hall, Indian Art Gallery, Kuwait Arts Association, Gallery Tilal

TRADE• The Kuwaiti economy, before the discovery of oil, depended heavily on

maritime activities and trade. Kuwait was a centre for ship building and pearl diving and fishing were important commercial activities.

• Until 1961 the Indian Rupee was the legal tender in Kuwait and Indo–Kuwaiti commerce revolved around trade in agricultural goods, textiles and horses

• In 2011–12, bilateral trade amounted to $17.56 billion, marking a 44% rise over the year of Kuwait with Indian exports to Kuwait amounting to a mere $1.1 billion in 2011–12. Indian eprevious xports to Kuwait in 2011–12 consisted of value added goods such as iron and steel products, boilers, machinery and mechanical appliances, electrical machinery and equipment and food items

• Kuwait is India's third largest trade partner in the Arab world and it accounted for 3.34% of India's global imports in 2011.

• India is however Kuwait's second largest export market and its fifth largest source of imports the top ten trading partners of Kuwait with bilateral trade doubling to $17.5 billion in 2011–12 from $8.35 billion in 2007–08

GDP OF KUWAIT

Currency: Kuwait Dinar (KD) Fiscal year: 1st April-31 March Trade : WTO,AND OPEC Organization GDP : $200.062 billion GDP Per CAP: $84309 GDP by sector: agriculture (0.3%), industry (50.6), services

(49.1%) (2013 est.) Inflation CPI:2.5% Unemployment:3.4-2011 Main Industry: petroleum, petro chemicals ,cement, shipbuilding and

repair, desalination, food processing, construction materials

IMPORT FROM INDIA TO KUWAIT Our exports to Kuwait in the

last five years are over US$1 billion. During 2014-15, major items exported from India to Kuwait covered a broad range including food items, cereals, textiles, garments, electrical and engineering equipment, pressure vessel reactors, industrial valves, boilers, machinery and mechanical appliances, cars, trucks, buses, tyres, chemicals, jewellery, handicrafts, metal products, iron and steel,

EXPORT FROM KUWAIT TO INDAI India’s imports from Kuwait during 2014-

15 were US$ 13.38 billion of which POL accounted for US$ 12.28 billion (Crude oil import was worth US$ 11.47 billion). The reduction in Kuwait’s exports to India, compared to 2013-14, was due to the sharp fall in crude oil price in the last two quarters of 2014-15 and reduced purchase of crude oil from Kuwait by Indian oil PSUs. In Rupee terms, the total imports from Kuwait were at 81,510.69 crores during 2014-15. 

Major imports from Kuwait (excluding Petroleum & its products) were organic chemicals, plastic and its articles, iron and steel, aluminum and copper and articles thereof; salt; sulphur; earths and stone; plastering materials; lime and cement, pulp of wood, etc.

IMPORT AND EXPORT

India’s Exports to Kuwait

India’s Imports from Kuwait

Total0.00

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

14,000.00

16,000.00

8,252.80

2,655.99

10,908.79

5,632.66

3,375.33

9,007.99

5,700.44

4,633.85

10,334.29

7,277.30 7,031.79

14,309.09

IN RUPEES CORER

2010-11 2011-12 2012-13 2014-2015

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