In the last article, we talked about the foreign investments in Kuwait and how it rules any developmental plans the country might be having over the coming years. However, for a country that earns a major chunk of its bread through regular oil supplies, thinking about a non-oil reliant economy is almost unimaginable. But, Kuwait has always been defying the predictable and triumphing with signs of an efficient and sustainable economic growth in its bosom.
Quite clear by the dipping oil prices, the regime is keen on finding an alternative that helps them sustain the economy and provide employment to the masses, nevertheless.
The Prevalent Banking Sphere: Extending Above and Beyond
To start with, the dark horse in the county’s economical framework- a rampant banking sector is all set to steal the show in 2016. All economists might be talking about the pitfalls this economy was dealing with, but a robust banking and finance industry made it possible to sustain a growth plan that would last for years, even in the absence of high oil revenues. In addition to this, it has also caused numerous social developments, hence paving the way for a plethora of prominent institutions that not only held the money strong, but provided immense opportunities to work in this exotic country, that too in a wide variety of fields.
For all those who have an entrepreneurial spirit to heed to, the Kuwaiti finance sector has assisted majorly by creating customized and tailored products for various SMEs and all those who wish to participate in small businesses. One can easily assume that the prosperity of this field has risen to such huge levels that the net value of projects taken up by the country got up to a whooping USD 30 billion, during October 2015.
Real Estate to Substantiate in Its Own Way
Clearly validated by occupancy rates in different real estate projects as high as 85% throughout the country, income levels for those working in various Kuwaiti construction corporations have risen to considerable levels during the last quarter of 2015. Importantly, the foreign investments driving movement and liquidity in the industry have nearly doubled since November 2015, hence proving that global investors are foraying into the Kuwaiti real estate sphere with a vision to facilitate production of various ranges in real estate products. However, the most conspicuous developments have been seen in the residential segment, where the residential land index is all set to remain in the positive territory for higher growth levels.
Earmarking of Developmental Funds
Having talked about the burgeoning banking and real estate sector, the investments coming from global source is a crucial factor that determines the economical growth in a number of aspects. However, making all effort to keep the cycle balanced in every way, the regime has succeeded in allocating huge sums of growth funds that cause a proportionate rise of revenue on different fronts.
It has been clearly perceived that the country stands in a strong position, from where it can easily handle the lows of the staggering oil prices. To assist the overall process equally, a great amount of public spending on social as well as physical infrastructure has also been observed during 2015. Goes without saying that it clearly validates as to why the country holds growth prospects as high as 2.5% during the long lying year ahead. Strong financial buffers, increased investment from public as well as global players and the pace of overall expansion in different business activities are things that will drive surge into the Kuwaiti economy during 2016.
Author Bio: Anshuman Kukreti is a professional writer and a keen follower of the global job market. An engineer by qualification and an artist at heart, he writes on various topics related to employment across the Gulf.