‘Kuwait safe, stable financially’ – COVID effects shunned

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KUWAIT CITY, May 3: The financial situation of Kuwait is safe and stable – this is what all local and international financial reports have unanimously agreed upon. Kuwait continues to be among the best investment destinations, if not for the negative effects of the COVID-19 pandemic, reports Al-Nahar daily quoting reliable sources. They explained that Kuwait possesses countless assets that enable it to remain steadfast in the face of crises.

Despite the liquidity crisis that the budget suffers from due to legislative intransigence in passing the public debt law, Kuwait has official reserve assets of KD 14.3 billion and foreign investments estimated at $530 billion managed by the Kuwait Investment Authority (KIA), and yields among the best in the world. When reading the financial position of Kuwait in the last 30 years from 1990/1991 to 2019/2020, it can be observed that the state achieved actual revenues of KD 368.9 billion, compared to expenditures amounting to KD 318.18 billion. KD 50.2 billion were transferred to the future generations fund, achieving financial surplus of KD 4.28 billion

Prompted
Kuwait enjoys a tax-free environment that is absent in other countries. This prompted many global and regional companies to enter the Kuwaiti market. According to official data, Kuwait managed to attract investments of $3.5 billion in five years from 2015 to March 2020. In parallel, Kuwait has a strong banking sector with capabilities that compete with similar sectors regionally and globally. Its total assets reached KD 73.73 billion by the end of February 2021 compared to KD 71.7 billion for the same period in 2020.

The oil industry plays a major role in strengthening Kuwait’s position regionally and globally. Kuwait has oil reserves estimated at 100 billion barrels that are sufficient for 90 years. It has great and tremendous capabilities in the gas sector, and has many major projects in the oil sector. The sources believe that the liquidity shortage that Kuwait faces and the decline in revenues are normal in light of the COVID-19 crisis and the decline in the oil prices, stressing that the government is striving to strengthen the state’s financial buffers by stopping wastage in expenditures and diversifying sources of income

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