Kuwait: Inward and Outward FDI
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Kuwait: Inward and Outward FDI 4.1 Population (million) 17,818 Area (Km 2 ) 499 Coastline (Km) Oil, Fish, Shrimps and natural gas Natural resources I – Inward Investments In 2014, Kuwait succeeded in attracting FDIs worth 486 million dollars according to UNCTAD estimations, which represent 1.1% of the Arab total for the same year. FDI balances incoming to Kuwait amounted to some 15.4 billion dollars by the end of 2014, which represent 1.9% of the Arab total for the same period. As for Kuwait's activity in terms of new FDIs (greenfield), the FDI Markets database published by the Financial Times for the period from January 2003 to May 2015 shows the following: • 300 FDI projects are being implemented in Kuwait by 258 Arab and foreign companies. It is estimated that the total investment cost of these projects, which employ roughly 32.6 thousand workers is about $ 11.2 billion. • UAE, USA, France, UK, Singapore, Denmark, Canada, Hong Kong, Switzerland and India respectively were on the list of the most important countries investing in Kuwait, in terms of investment cost of the projects. The share of UAE, USA and France accounted for around 75% of the total. • Arab and foreign investments incoming to Kuwait are concentrated in the real estate sector with a percentage of 23%, while 18.5% are in the hotels and tourism sector, 17.6% in the business services sector and 16% in the chemicals sector. • The Dow Chemical Company came on top of the list of the 10 most important companies investing in Kuwait where it implements 3 projects with an investment cost estimated at 1.1 billion dollars. II – Outward Investments In 2014, Kuwait succeeded in exporting FDIs worth 13.1 billion dollars according to UNCTAD estimations, which represent 39.2% of the Arab total for the same year. Outward FDI balances from Kuwait amounted to some 36.5 billion dollars by the end of 2014, which represent 14.6% of the Arab total for the same period. As for Kuwait's investment activity abroad according to the FDI Markets database for the period from January 2003 to May 2015, it was as follows: • The number of Kuwaiti FDI projects abroad amounted to 412 projects that are being implemented by Kuwaiti companies. Estimations reveal that the overall investment cost of those projects, which employ some 127 thousand workers, is close to 66.5 billion dollars. • China, Vietnam, Bahrain, UAE, Egypt, Malaysia, Syria, Lebanon, Oman and Nigeria respectively were on the list of the most important countries receiving Kuwaiti investments, in terms of investment cost of the projects. The share of China, Vietnam and Bahrain accounted for around 39% of the total. • Kuwait Petroleum Corporation came on top of list of the most important Kuwaiti companies investing abroad, as it is implementing 11 projects with an investment cost estimated at 19 billion dollars approximately. 164
Transcript of Kuwait: Inward and Outward FDI
Kuwait: Inward and Outward FDI
4.1 Population (million)
17,818 Area (Km2)
499 Coastline (Km)
Oil, Fish, Shrimps and
natural gas Natural resources
I – Inward Investments In 2014, Kuwait succeeded in attracting FDIs worth 486 million dollars according to UNCTAD estimations, which represent 1.1% of the Arab total for the same year. FDI balances incoming to Kuwait amounted to some 15.4 billion dollars by the end of 2014, which represent 1.9% of the Arab total for the same period. As for Kuwait's activity in terms of new FDIs (greenfield), the FDI Markets database published by the Financial Times for the period from January 2003 to May 2015 shows the following: • 300 FDI projects are being implemented in Kuwait by 258 Arab and foreign companies. It is estimated that the total investment cost of these projects, which employ roughly 32.6 thousand workers is about $ 11.2 billion. • UAE, USA, France, UK, Singapore, Denmark, Canada, Hong Kong, Switzerland and India respectively were on the list of the most important countries investing in Kuwait, in terms of investment cost of the projects. The share of UAE, USA and France accounted for around 75% of the total. • Arab and foreign investments incoming to Kuwait are concentrated in the real estate sector with a percentage of 23%, while 18.5% are in the hotels and tourism sector, 17.6% in the business services sector and 16% in the chemicals sector. • The Dow Chemical Company came on top of the list of the 10 most important companies investing in Kuwait where it implements 3 projects with an investment cost estimated at 1.1 billion dollars. II – Outward Investments In 2014, Kuwait succeeded in exporting FDIs worth 13.1 billion dollars according to UNCTAD estimations, which represent 39.2% of the Arab total for the same year. Outward FDI balances from Kuwait amounted to some 36.5 billion dollars by the end of 2014, which represent 14.6% of the Arab total for the same period. As for Kuwait's investment activity abroad according to the FDI Markets database for the period from January 2003 to May 2015, it was as follows: • The number of Kuwaiti FDI projects abroad amounted to 412 projects that are being implemented by Kuwaiti companies. Estimations reveal that the overall investment cost of those projects, which employ some 127 thousand workers, is close to 66.5 billion dollars. • China, Vietnam, Bahrain, UAE, Egypt, Malaysia, Syria, Lebanon, Oman and Nigeria respectively were on the list of the most important countries receiving Kuwaiti investments, in terms of investment cost of the projects. The share of China, Vietnam and Bahrain accounted for around 39% of the total. • Kuwait Petroleum Corporation came on top of list of the most important Kuwaiti companies investing abroad, as it is implementing 11 projects with an investment cost estimated at 19 billion dollars approximately.
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Kuwait: FDI Greenfield Projects
Source: Tables and Figures in this page: FDI Intelligence from The Financial Times
Rank Sector Companies ProjectsJobs
CreatedCost
(Million $)%
of Total
1 Real Estate 10 10 3,723 2,578 232 Hotels & Tourism 15 15 1,895 2,077 193 Business Services 25 25 2,002 1,971 184 Chemicals 3 8 1,595 1,794 165 Financial Services 27 39 649 616 56 Communications 10 15 836 419 47 Leisure & Entertainment 4 5 922 320 38 Consumer Products 35 39 8,125 289 39 Textiles 66 73 6,278 263 210 Food & Tobacco 17 20 3,857 244 2
46 51 2,703 654 6258 300 32,585 11,225 Total
Inward investment in Kuwait by the sectoral distribution between January 2003 and May 2015
Others
RankHosting
CountriesCompa
niesProjects
Jobs Created
Cost (Million $)
1 China 6 6 3,341 9,2642 Vietnam 3 6 3,342 9,1863 Bahrain 26 40 17,217 7,1764 Emirates 44 62 21,138 7,0395 Egypt 16 22 17,678 5,7716 Malaysia 8 22 2,802 5,2777 Syria 8 9 9,210 5,0998 Lebanon 12 16 5,015 2,0269 Oman 16 18 7,943 1,585
10 Nigeria 1 2 983 1,40811 Jordan 18 25 4,847 1,12112 Morocco 3 3 3,277 88713 Djibouti 1 1 875 86514 India 6 6 4,057 81815 Qatar 14 15 1,710 72116 Saudi Arabia 22 31 2,680 70117 Iraq 6 7 715 66618 to whom 1 1 875 60119 Thailand 1 2 2,915 51120 Iran 2 2 666 49921 Belgium 2 2 136 44322 United Kingdom 4 7 1,186 41223 Turkey 7 8 467 38824 Holland 5 5 394 38625 South Africa 2 2 788 35326 Tunisia 2 3 429 27127 United States 4 8 837 24528 Poland 3 11 526 22529 Bosnia and Herzegovina1 1 1,837 18930 Hong Kong 2 2 378 174
67 8,628 2,239 412 126,892 66,541
Kuwait Outwards' Investmentbetween January 2003 and May 2015
Total
Others
Rank Company Projects Jobs CreatedCost
(Million $)1 Dow Chemical 3 652 1,1212 EMKE Group 10 1,607 7293 ProLogis 1 875 6014 Hempel Group 4 868 5905 Landmark Group 10 1,813 2806 Accor 1 192 2287 Movenpick Group (Moevenpick) 1 192 2288 Four Seasons Hotels & Resorts 1 192 2289 Le Meridien Hotels & Resorts 1 192 22810 Marriott International 1 192 228
Other Companies 267 25,810 6,765
300 32,585 11,225Total
Top 10 companies investing in Kuwait between January 2003 and May 2015
Rank Company ProjectsJobs
CreatedCost
(Million $)1 Kuwait Petroleum (KPC) 11 7,000 18,8842 Kuwait Finance House 40 7,332 5,0033 Gulf Petroleum Investment (GPI) 1 1,200 5,0004 Aref Investment Group 1 3,000 4,0005 Al Fawares Construction and Development 1 3,000 2,610
6 Zain (Mobile Telecommunications Company) (MTC)
11 1,731 2,197
7 Gulf Holding Company (GHC) 3 9,000 1,8008 Agility 48 4,706 1,7879 International Financial Advisers (IFA) 11 5,356 1,70910 Al Mazaya Holding 9 4,493 1,497
Other Companies 276 80,074 22,054
412 126,892 66,541
Top important Kuwait companies investing abroad between January 2003 and May 2015
Total
Inward investment in Kuwait by the sectoral distribution between January 2003 and May 2015
Real Estate23.0%
Hotels & Tourism18.5%
Business Services17.6%
Chemicals16.0%
Financial Services
5.5%
Communications3.7%
Leisure & Entertainment
2.8%
Consumer Products
2.6%
Textiles2.3%
Food & Tobacco2.2%
Others5.8%
RankExporting Countries
No. Companies
No. Projects
No. Jobs
Cost (Million $)
1 Emirates 57 79 10,027 2,6202 United States 41 45 4,325 2,4863 France 21 21 3,561 2,2304 United Kingdom 20 20 1,921 6025 Singapore 1 1 875 6016 Denmark 1 4 868 5907 Canada 4 4 361 2778 Hong Kong 4 4 377 2509 Switzerland 3 3 648 242
10 India 17 20 1,410 21511 Bahrain 7 9 471 14612 Japan 1 1 89 13413 Qatar 10 12 524 13114 China 4 4 165 9715 Saudi Arabia 9 12 1,617 9316 Holland 3 3 151 7217 Spain 10 11 1,372 5018 Italia 11 11 1,230 4719 Oman 3 3 244 4320 Australia 2 2 31 3921 Jordan 2 2 275 3922 Luxembourg 1 1 20 3623 Germany 5 5 378 3324 Ireland 3 3 30 2025 Austria 3 3 306 1926 Bulgaria 2 2 41 1727 Bangladesh 1 1 16 1528 Lebanon 2 3 400 1429 Cyprus 1 2 147 1430 Thailand 1 1 212 13
Others 8 8 493 43
258 300 32,585 11,225
Inward investment in Kuwait between January 2003 and May 2015
Total
Top countries receiving investment from Kuwait between January 2003 and May 2015
China13.9%
Vietnam13.8%
Bahrain10.8%
Emirates10.6%
Egypt8.7%
Malaysia7.9%
Syria7.7%
Lebanon3.0%
Oman2.4%
Nigeria2.1%Others
19.1%
Top countries investing in Kuwait between January 2003 and May 2015
Emirates23.3%
United States22.1%
France19.9%
United Kingdom
5.4% Singapore5.4%
Denmark5.3%
Canada2.5%
Hong Kong2.2%
Switzerland2.2%India
1.9%
Others9.9%
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Source of Tables and Figures in this page: International Trade Center
Kuwait : Imports and Exports of Goods
Top 10 countries exporting goods to Kuwait 2014
China14%
United States10%
UAE9%
And Japan7%
Germany7% Saudi
Arabia5%
India4%
South Korea
4%
Italia4%
United Kingdom
3%
Value (thousand $) % Imports
1 China 4,452,186 14.1
2 United States 3,076,842 9.8
3 United Arab Emirates 2,952,717 9.4
4 And Japan 2,235,583 7.1
5 Germany 2,099,380 6.7
6 Saudi Arabia 1,570,292 5.0
7 India 1,307,829 4.2
8 South Korea 1,288,003 4.1
9 Italia 1,171,935 3.7
10 United Kingdom 816,003 2.6
10,518,050 33.0
31,488,820
Others
Total
Rank Exporting CountryKuwait Imports
Top 10 countries exporting goods to Kuwait2014
Value (thousand $) % Exports
1 France 94,498,837 93.4
2 China 1,038,831 1.0
3 India 890,766 0.9
4 United Arab Emirates 839,234 0.8
5 Saudi Arabia 745,802 0.7
6 Iraq 683,001 0.7
7 Pakistan 202,226 0.2
8 Turkey 200,418 0.2
9 Qatar 197,875 0.2
10 Indonesia 180,566 0.2
1,654,400 1.4
101,131,956Total
Top 10 countries importing goods from Kuwait2014
Rank Importing CountryKuwait Exports
Others
Value (thousand $) % World Exports
1 Mineral fuels, oils, distillation products, etc 94,526,599 3.1
2 Organic chemicals 1,710,879 0.4
3 Plastics and articles thereof 1,088,845 0.2
4 Vehicles other than railway, tramway 1,018,116 0.1
5 Fertilizers 328,600 0.5
6 Machinery, nuclear reactors, boilers, etc 294,112 0.0
7 Pearls, precious stones, metals, coins, etc 219,103 0.0
8 Iron and steel 201,262 0.0
9 Electrical, electronic equipment 171,746 0.0
10 Dairy products, eggs, honey, edible animal product nes 163,677 0.2
1,409,015 1.0
اإلجمالي101,131,954
Top 10 goods (products) exported by Kuwait 2014
Rank Exported GoodsExports
أخرى
Value (thousand $) % World Imports
1 Vehicles other than railway, tramway 4,960,655 0.4
2 Machinery, nuclear reactors, boilers, etc 3,619,182 0.2
3 Electrical, electronic equipment 3,532,689 0.1
4 Pearls, precious stones, metals, coins, etc 1,485,930 0.3
5 Articles of iron or steel 1,256,180 0.4
6 Iron and steel 970,614 0.2
7 Pharmaceutical products 961,836 0.2
8 Plastics and articles thereof 708,160 0.1
9 Optical, photo, technical, medical, etc apparatus 681,214 0.1
10 Cereals 677,897 0.5
12,634,457 17.0
31,488,814Total
Top 10 goods (products) imported by Kuwait 2014
Rank Imported GoodsImports
Others
Top 10 countries importing goods from Kuwait 2014
France93%
China1%
India1%
UAE1%
Saudi Arabia
1%
Iraq1%
Others2%
Top 10 goods (products) exported by Kuwait 2014
Mineral fuels, oils,
distillation products, etc
93%
Organic chemicals
2%
Plastics and articles
thereof
1%
Vehicles other than
railway,
tramway1%
Others3%
Top 10 goods (products) imported by Kuwait 2014
Vehicles other than railway
16%
Machinery, nuclear reactors
12%
Electrical, electronic
equipment11%
Pearls, precious
stones5%
Articles of iron or steel
4%
Iron and steel3%
Pharmaceutical products
3% Plastics and articles
2%
Optical, photo2%
Cereals2%
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Capital: Kuwait City 2013 2014Currency: Kuwaiti dinar (KWD) Exchange rate (LCU per USD): 0.284 0.282
Basic Information: UnitUSD billion
%
USD
%
%
USD billion
%
USD billion
USD billion
USD billion
Month
%
Million people
%
Foreign direct investment (FDI) UnitFDI Flow
Inward USD millionOutward USD million
FDI StockInward USD millionOutward USD million
Source: UNCTAD
Technological Environment and Differentiation
32,250 31,023 37,153 36,531
10,773 6,741 16,648 13,108
15,176 18,144 16,097 15,362
2011 2012 2013 2014
3,259 2,873 1,434 486
3.9 4.0 4.1 4.22.1 2.1 2.1 2.1
7.4 8.4 8.3 8.217.9 19.3 26.4 25.3
47.5 50.7 54.1 58.329.2 35.5 37.6 39.7
39.6 35.3 15.7 19.3121.5 112.8 72.6 81.2
37.5 45.3 55.8 51.669.6 60.9 21.1 28.7
43,103.3 32,719.7 35,235.22.7 2.9 3.3 3.6
Kuwait: Overall Performance and Position in DIAI
Performance in Dhaman Investment Attractiveness Index (DIAI) 2015
Performance in DIAI's Core Components
2013 2014 2015 2016175.8 172.4 134.5 148.91.5 1.3 1.7 1.8
45,188.8
Nominal GDP
Real GDP Growth
GDP per Capita
Inflation (average consumer prices)
General Government Total Expenditure and Net Lending (% of GDP)
Current Account Balance
Current Account Balance (% of GDP)
Exports of Goods and Services
Imports of Goods and Services
Gross Official Reserves
Total reserves in months of imports
Total Gross External Debt (% of GDP)
Population
Unemployment (% of total labor force)Source: International Monetary Fund (IMF)
59.4 57.2
29.1
51.9 47.1
23.3
57.4 50.9
29.7
0.0
20.0
40.0
60.0
80.0
Prerequisites Underlying Factors Positive Externalities
Performance in DIAI's three main axes
Kuwait Arab Region World Average
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
Macroeconomic Stability
Financial Structure and Development
Institutional environment
Business Environment
Market Access and Market Potential
Human and Natural ResourcesCost Components
Logistics Performance
Telecommunications and Information Technology
Agglomeration Economies
Technological Environment and Differentiation
Kuwait Arab Region World Average
48.8 40.4
45.8 44
67 55
0.0
20.0
40.0
60.0
80.0
Kuwait Arab Region World Average
Performance in DIAI
Score Rank
167
