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Finance’s economic team issues report
KUWAIT CITY, Jan 19: According to a report issued by the economic team of Ministry of Finance, Kuwait leads the Gulf countries in attracting foreign investment, reports Al-Nahar daily.
The report indicated that Kuwait will attract new direct foreign investment in the coming phase, provided the situation is strong and the economy is encouraging in terms of low debt and low interest rates.
Also, the economic growth should be supported by significant investment spending, particularly in infrastructure projects, with the possibility of the country’s upgrade to being one among the emerging markets in June 2019.
It affirmed that there are many foreign investors who wish to come to Kuwait because the state has the lowest price of a barrel of oil in the state budget with $43 per barrel when compared to the high barrel prices in other member states of the Gulf Cooperation Council, the highest being the Kingdom of Bahrain with $112 per barrel.
Kuwait is trading at ten-percent higher premium than others in the Middle East which is worthy in light of its current economic performance. The report also indicates that the premium is up to 35 percent.
According to sources, Kuwait was the leader in foreign investors’ flows in 2018, reversing the trend of the previous years. This is not only due to the country’s inclusion in the emerging markets of 2019.
It is due to the improvement of the performance of many macroeconomic indicators. The inflows also reflect the penetration of foreign investors which was weak in the past.