PwC has had a dedicated presence in Kuwait since the early 1960s, and is a leading provider of assurance, business advisory and taxation services to domestic and international companies across a range of sectors, including, oil & gas, banking and financial services, shipping and other transportation, consumer / industrial products manufacturing, real estate development, contracting and others.

Kuwait is one of the richest countries in the world and has the world’s fifth largest oil reserves.  Petroleum products accounted for nearly 95% of export revenues and 80% of government income.  About 52% of the country’s GDP is from the oil sector.  While Kuwait’s oil sector is enjoying high growth based on the prevailing levels of global energy prices, other sectors are also exhibiting robust growth.  

The following are trends in the key non-oil sectors and areas of economic development in Kuwait:

Telecommunications:  Kuwait has a relatively mature and advanced telecommunications industry. Kuwait has a highly competitive mobile telephony sector with three service providers who collectively have enjoy a penetration rate of around 130%.

Kuwait Development Plan: In 2010, the Kuwaiti parliament passed the country’s new development plan called the Kuwait Development Plan.  The new plan includes development on some new projects such as the Kuwait Metro and railway and other long awaited projects such as the multi-billion dollar Silk City project, Boubyan Port and the Subiya Causeway.  The Kuwait Development plan seeks the active participation of the private sector through public private partnerships (PPP) in such areas as low cost housing, hospitals and higher education institutions.

Real estate:  Keeping with the trend in the GCC region, Kuwait has begun developing freehold and commercial properties to cater to the increasing population and per capital incomes.  The real estate sector is expected to experience significant growth in the near to medium term based on government support through regulation and liquidity infusions.  Kuwait Investment Authority, the country’s sovereign wealth fund, recently announced the infusion of KD 1 bn (c. US$3.6 billion) into the commercial property market.

Banking & Financial services: Kuwait has a robust banking sector that continues to benefit from high energy prices and the resulting business and consumer confidence.  All Kuwaiti listed banks have strong capital adequacy ratios that significantly exceed the requirement of the Central Bank of Kuwait.  Kuwaiti banks had a total asset base of KD 45.7 billion (US$ 165 billion) in 2010

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PricewaterhouseCoopers Al-Shatti & Co.
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PricewaterhouseCoopers Al-Shatti & Co.
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