Kuwait - Market OverviewKuwait - Market Overview
Kuwait is situated on the northeast corner of the Arabian Peninsula, at the head of the Arabian Gulf. Bordered to the north and west by Iraq, to the south and west by Saudi Arabia and to the east by the Arabian Gulf, Kuwait occupies a strategic position in this vital region. Kuwait is a member of the six-nation Gulf Cooperation Council (GCC). About one-third of an estimated population of 4.5 million are Kuwaiti nationals. The remainder consists of expatriate residents hailing from more than 80 countries. The oil industry and government sector dominate the economy, with crude oil reserves estimated at nearly 101.5 billion barrels, approximately 7% of the world’s reserves. The oil industry accounts for over half of GDP and 94.4% of government revenues. With oil the main natural resource, oil refining and downstream petrochemical processing are the dominant industries. Non-petroleum-related manufacturing and agriculture sectors are limited, consisting of a switch-gear manufacturer for power sub-stations, and factories for building materials, furniture, and food packaging.
In 2010, the parliament passed a five-year $104 billion development plan that aimed to upgrade infrastructure and diversify the economy away from oil. In 2015, the government adopted a new development plan (2015-2020) that focused on economic reform and the implementation of several long-stalled mega-strategic projects that were not implemented under the preceding plan. While government-funded major projects move slowly, some major projects have been expedited in recent years.
Kuwait imports most of its capital equipment, processed foods, manufacturing equipment, and consumer goods. Two-way trade is limited to a few international partners. Almost half of the country’s imports originate from China, the United States, the UAE, Japan, and Germany, while over 50% of Kuwait’s export earnings are attributable to South Korea, China, India, Japan, and the United States. The United States remains a leading and strategic trade partner. U.S. exports to Kuwait in 2017 were valued at an all-time high of $5.2 billion, a 57% increase from $3.3 billion in 2016 due in part to the sale of Boeing 777’s to Kuwait. Kuwaitis frequently travel to the United States (with approximately ten percent of Kuwaiti high-school graduates continuing their education at U.S. colleges and universities), and Americans and American brands and products are warmly welcomed. Although Kuwaitis are extremely price-conscious; they are also avid consumers. While Chinese and Indian goods increasingly dominate low-end imports, U.S. exports are relatively competitive in Kuwait.
According to the Kuwait’s Central Statistical Bureau, Kuwait’s nominal GDP was $110.754 billion in 2016. The World Bank assesses that Kuwait’s economy slowed by 1% in 2017 due to low oil prices. Kuwait's current oil production capacity is estimated at 3.15 million barrels per day. The government hopes to increase production capacity to 4 million barrels per day by 2020. In order to reach this goal, Kuwait must continue spending heavily on upgrading downstream facilities as well as on upstream oil development.
Transportation equipment, including automobiles and automotive parts, accounted for 44.5 percent of non-military U.S. exports to Kuwait in 2017. Oil and gas field equipment, telecommunications and IT equipment, medical equipment, and electronics were also leading export sectors for U.S. firms.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
In 2010, the parliament passed a five-year $104 billion development plan that aimed to upgrade infrastructure and diversify the economy away from oil. In 2015, the government adopted a new development plan (2015-2020) that focused on economic reform and the implementation of several long-stalled mega-strategic projects that were not implemented under the preceding plan. While government-funded major projects move slowly, some major projects have been expedited in recent years.
Kuwait imports most of its capital equipment, processed foods, manufacturing equipment, and consumer goods. Two-way trade is limited to a few international partners. Almost half of the country’s imports originate from China, the United States, the UAE, Japan, and Germany, while over 50% of Kuwait’s export earnings are attributable to South Korea, China, India, Japan, and the United States. The United States remains a leading and strategic trade partner. U.S. exports to Kuwait in 2017 were valued at an all-time high of $5.2 billion, a 57% increase from $3.3 billion in 2016 due in part to the sale of Boeing 777’s to Kuwait. Kuwaitis frequently travel to the United States (with approximately ten percent of Kuwaiti high-school graduates continuing their education at U.S. colleges and universities), and Americans and American brands and products are warmly welcomed. Although Kuwaitis are extremely price-conscious; they are also avid consumers. While Chinese and Indian goods increasingly dominate low-end imports, U.S. exports are relatively competitive in Kuwait.
According to the Kuwait’s Central Statistical Bureau, Kuwait’s nominal GDP was $110.754 billion in 2016. The World Bank assesses that Kuwait’s economy slowed by 1% in 2017 due to low oil prices. Kuwait's current oil production capacity is estimated at 3.15 million barrels per day. The government hopes to increase production capacity to 4 million barrels per day by 2020. In order to reach this goal, Kuwait must continue spending heavily on upgrading downstream facilities as well as on upstream oil development.
Transportation equipment, including automobiles and automotive parts, accounted for 44.5 percent of non-military U.S. exports to Kuwait in 2017. Oil and gas field equipment, telecommunications and IT equipment, medical equipment, and electronics were also leading export sectors for U.S. firms.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.